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£O^SS^L^L^A^^^
1
Q
.
F
I
I
I
BRITANNIC MAJESTY S GOVERNMENT)
S
1
3V
SI.
90(30)
CABINET.
C o m m i t t e e on t h e
Colonial Sugar
Industry.
Report,
1.
At t h e i r M e e t i n g o n t h e 1 9 t h F e b r u a r y ,
(Cabinet
11 (30)
Conclusion 5),
c e r t a i n Memoranda
of t h e
(Papers
West I n d i a n
CP.
40
regard to the position
I n d i e s and M a u r i t i u s
a Cabinet
of t h e
Committee
The F i r s t
of
(covering the
a n d C . F . 52
for
inter
composed
Mauritius,
including
I n d i e s , and s h o u l d
the
something c o u l d be done to
industry
Since the
Secretary
of S t a t e f o r
obtain
Cabinet the Report
Sugar I n d u s t r y
appointment
of
the
first
ol the
to
the
and
West
whether
assistance
Committee
W a t t s on t h e
(SO))
the
to
(Cabinet
of
a Memorandum
of t h e B r i t i s h
T h i s document was b e f o r e
the
Mauritius
and t h e M i n i s t e r
57 ( 3 0 ) ) on t h e p o s i t i o n
t h e i r M e e t i n g on 2 6 t h F e b r u a r y ,
regard
West I n d i e s
instance
temporary
(Paper C P .
1.
in
Fund.
Sir Francis
5).
raisea
in the
and F i s h e r i e s h a s c i r c u l a t e d
Industry.
West
-
Colonies has circulated
( P a p e r C P , , 59
in
Colonies
Agriculture
Beet
in t h e
of t r a n s p o r t
in the
t h r o u g h the C o l o n i a l Development
2.
Colonies
Admiralty
question
consider,
(30)),
as follows
State for the
sugar
Report
Exchequer
Lord of t h e
of t h e
them
alia:­
examine t h e whole of t h e q u e s t i o n s
the position
the
sugar i n d u s t r y
and a g r e e d ,
The S e c r e t a r y
to
(30)
of S t a t e
The C h a n c e l l o r o f t h e
should
Cabinet had b e f o r e
Sugar Commission)
c i r c u l a t e d by t h o S e c r e t a r y
that
the
1950,
the
Sugar
Cabinet
12 ( 3 0 )
at
Conclusion
3.
The f a c t s
are
summarised i n
G.
is
40 ( 3 0 ) ,
as
the
to
t h e West I n d i a n
Secretary
due t o o v e r - p r o d u c t i o n w h i c h i s
tariffs.
" ith
the
r
Colonies
sugar
of
British
efficient
suffering
est
losses
8/- a cwt.
I n d i a n Sugar Commission
industry
after
disastrous
Colonies
the p r e s e n t
financial
on s u g a r ;
and e v e n i f
present
continues,
rate,
The s i t u a t i o n
can
"Watts" s o p i n i o n
essential
life
industry
of
to
the
its
the
the
existing
are
of
the
British
if
the
place
1 - f
is
is
dependent
maintained
situation
revenues.
very
est Indian
appears
of
consequent
in Mauritius
i t s maintenance
of
and
public
industry
the
the
the p r e s e n t
planting,
of
its
to
islands
preference
in the l o c a l
that
take
the
w i n d i n g up o f
to
be,
sugar
continuance
to
the
econmmic and
sugar
industry.is
similar
industry.
and
in
be
social
the'Colony.
The B r i t i s h
efficient
to
of
which a r e v/holly
the M a u r i t i u s
these r e s p e c t s
No o t h e r
S i r P.
of
at
the
consequences
the B r i t i s h
of
it
crop has b e e n cut, w i t h
Kitts
unemployment and a d e c l i n e
in a l l
the v i r t u a l
there w i l l
curtailment
British
the o p i n i o n
the removal
and e c o n o m i c
and S t .
the
"Test I n d i a n p r o d u c e r s
c o n c e r n e d and p a r t i c u l a r l y
Barb^does,Antigua
its
in
of
countries
produce
In
sugar
protective
Even w i t h
up t o 2 / - a c w t .
p r e f e r e n c e would r e s u l t
and
in
the r e s u l t
-Java and Cuba,
however,
present world price
preference,
depression
as c h e a p l y as any
they cannot,
situation
memorandum
largely
subsidies
exception of
can p r o d u c e
in the w o r l d :
at
State's
The p r e s e n t w o r l d - w i d e
encouragement b y b o u n t i e s ,
v r
of
sugar
on i t s
:lanting
Colonial
factory
side.
s i d e "but i s
tolerably
somewhat b a c k w a r d
on
4.
The West I n d i e s
1.
that
international
eliminate
2.
3.
that
high
tariffs
sugar at
sugar at
the market p r i c e
that
the B r i t i s h
subsidies to
to
figure
agreement
Sir
should be taken
and
Imperial
that
t a k e n at
action
recommended
under
the
13/- per
per
(1)
over
the p r i c e
£8)
increased
and m a i n t a i n e d
conclusion
the
buy
other
s h o u l d be
cwt.
or the
of
and
(now u n d e r
of
adoption
recommended f o r
excess
cwt.,
s e t up t o
c.i.f.
preference
pending the
Francis Watts
cover
£15 a t o n
4/8d.
to
subsidies;
an I m p o r t B o a r d s h o u l d be
from 3/8d.
5.
S u g a r Commission
oost
at
an
of
(2).
Mauritius
of
production,
realised
in
the
Colony.
6.
As r e g a r d s
recommendations
(1)
-Vest I n d i e s C o m m i s s i o n s
the
1
­
There
i s no
immediate
prospect
of
the
action
suggested.
(2)
Tho
to
Committee have
expedite
by h i s
v
(3)
the
open t o
could not
question
British
objection
in practice
be
that
s m a l l amount o f
from t h e West
Indies
to
Africa,
should,
be
given
of
also
The q u e s t i o n
therefore,
Boards.
proposal
to
preference
such
increase
to
sugar
to Australia
the
imported
but
would
and South
an i n c r e a s e d
be r u l e d
proposal
Import
and M a u r i t i u s ,
of
Fisher
is
restricted
comparatively
have
this
considerations,any
existing
the
of
Committee w h i c h
general
from o t h e r
increase
is
the
S i r Warren
consideration
Departmental
examining
Apart
the
requested
out f r o m
preference
consideration.
7.
India i s
the n a t u r a l market
and l a r g e numbers of
would
Indians
h a r e t o be r e p a t r i a t e d
industry
is
recently
(in reply to
in April,
decision
favour
c l o s e d down.
1929)
that
of
sugar
in
the
State for
subject,
increase
if
of
it
Measures for
of t h e
improved v a r i t i e s
amalgamating
by p e a s a n t
farmers,
of t r a n s p o r t
Development
the
the
etc.
Fund,
arrange that
in
to
State
reference
to
assistance
for
a
to
sugar from
the
budget,
giving the
reorganisation
cane,
estates,
their
even
Colony more
.
Colonial
of
have
Gowernment
S e c r e t a r y of
i n t h e new I n d i a n
s e e h e r way t o
treatment.
India
adhering to
I n d i a c o u l d exempt M a u r i t i u s
preferential
improvement
to the
and
sugar
Colonies has undertaken
particularly with
duty proposed
of
Island
could not be j u s t i " i e d .
would be of m a t e r i a l
though she could not
8.
if the
sugar,
I n d i a n Customs t a r i f f
the
I n d i a on t h e
the
made b y t h e l a t e
i m p o r t s from M a u r i t i u s
representations
Mauritius
India
reasons for
make f u r t h e r
suggestion that
to
a request
a change
employed in
The G o v e r n m e n t
given t h e i r
The S e c r e t a r y o f
will
are
for Mauritius
sugar
and
industry,
installing
developing the
and t h e
within
Secretary
such a s
more modern
planting
machinery,
system of cane
improving methods of
would f a l l
permanent
the
growing
cultivation
scope of t h e
of S t a t e
schemes w i l l be p r e p a r e d
for
the
and
Colonial
Colonies
and s u b m i t t e d
C o l o n i a l Development Advisory Committee as
quickly
to
as
possible.
9.
These,
however are long range measures,
a c c o r d a n c e w i t h t h e w i s h e s of t h e
have
examined t h e
from the
be k e p t
10.
is to
feasibility
Cabinet,
of o b t a i n i n g
C o l o n i a l D e v e l o p m e n t ihind t o
alive
the
in
Committee
temporary
enable the
assistanc
industry
Meantime.
The C o m m i t t e e
continue
and,
are of o p i n i o n t h a t
i t w i l l be n e c e s s a r y t o
of t h e g r o w e r s t o
enable
them t o
a d v a n c e s t o be r e p a i d when t h e
if
support
production
the
obtain ahort term
sugar
i s exported
credit
crop
or
sold.
to
7,
India i s the n a t u r a l market
and l a r g e numbers of I n d i a n s
would
have t o be r e p a t r i a t e d
industry
is closed
recently
(in reply to
in April,
decision
favour
1929)
that
of
down.
a change
in the
for the
I n d i a on t h e
subject,
increase
if
it
India
8.
of t h e
amalgamating
the
Government
their
in
justi
Gclonies has undertaken
to the
to
assistance
for
a
to
s u g a r from
giving the
ied.
-
to
S e c r e t a r y of S t a t e
the
i n t h e new I n d i a n b u d g e t ,
s e e h e r way t o
the
reorganisation
Colonial
of
cane,
estates,
farmers,
of t r a n s p o r t
Development
late
have
even
Colony more
treatment.
improved v a r i t i e s
by p e a s a n t
India
adhering to
c o u l d exempt M a u r i t i u s
Measures for
improvement
of
and
sugar
could not be
would be of m a t e r i a l
though she could n o t
the
Island
particularly with reference
of d u t y p r o p o s e d
preferential
if
sugar,
I n d i a n Customs t a r i f f
i m p o r t s from M a u r i t i u s
representations
Mauritius
to India
reasons for
make f u r t h e r
suggestion that
employed in t h e
The G o v e r n m e n t
given t h e i r
sugar
Mauritius
a r e q u e s t made b y t h e
The S e c r e t a r y o f S t a t e
will
are
for
sugar
developing the
arrange that
such a s
more modern
planting
machinery,
s y s t e m of cane
i m p r o v i n g m e t h o d s of
and t h e
permanent
industry,
installing
e t c . would f a l l
Fund,
and
within the
S e c r e t a r y of
growing
cultivation
scope of the
State
schemes w i l l be p r e p a r e d
for the
and
Colonial
Colonies
and s u b m i t t e d
C o l o n i a l Development Advisory Committee as
quickly
to
as
po s s i b l e .
9.
These,
however are long range measures,
a c c o r d a n c e w i t h t h e w i s h e s of t h e
have
examined t h e
from t h e
be k e p t
10.
is to
feasibility
Cabinet,
of o b t a i n i n g
C o l o n i a l D e v e l o p m e n t Fund t o
alive
the
in
Committee
temporary
enable
the
assistance
industry
Bn-gantime.
The C o m m i t t e e
continue
and,
it
of t h e g r o w e r s t o
a r e of o p i n i o n t h a t
w i l l be n e c e s s a r y t o
enable
them t o
a d v a n c e s t o be r e p a i d when t h e
4.
if
support
obtain ahort
sugar
is
production
the
term
exported
credit
orop
or
sold.
to
Prom t h e
point
agriculture
imperative
of v i e w of p o s s i b l e
and o t h e r d e p r e s s e d
that
the fullest
reactions
British
use
should be k e p t
British
industries,
s h o u l d b e made o f
C o l o n i a l m a c h i n e r y and r e s o u r c e s and t h a t
Government
on
the
it
is
existing
British
a s much a s p o s s i b l e
in
the
baakground.
11.
The C o m m i t t e e
Development
that
the
Colonial
Fund c o u l d n o t p r o p e r l y b e u s e d t o
temporary f i n a n c i a l
alive.
are of o p i n i o n
assistance
In any e v e n t
there
afford
i n o r d e r t o k e e p an
i s no f u n d
already
industry
in
existence
a n d w h a t e v e r money t h e f u n d w i l l n e e d w i l l h a v e t o
p r o v i d e d '­, f r o m
12.
Totes.
The C o m m i t t e e h a v e e x a m i n e d a s c h e m e p r o p o s e d
the
Secretary
of S t a t e f o r
enable them t o
Colonies
a d v a n c e £2 p e r a c r e t o
term crop advance
recoverable
of t i e
the
Committee,
Secretary
13.
of B a r c l a y ' s
sugar.
and t h e
lien
the
on a n a d e q u a t e
soalo.
Bank t o
the
revise
scale
for the
their
that
the
West
production
in respect
if
sufficient
of
that
offer
Colonies,
and a g r e e
Colonial
subject,
to
continue
Their
would
offer
sufficiently
in Mauritius.
however,
to
advances
t h e Government
sums a d v a n c e d .
C o l o n i a l Governments e q u a l l y ,
condition
of
I n d i e s only as they were not
of S t a t e
explained
a c r e would n o t be
conversant w i t h the working of t h e t r a d e
Secretary
with
The B a n k w o u l d b e w i l l i n g
b e a r l o s s e s u p t o 20ft o f t h e
t h e West
Colonies,
t h e Bank from making f u r t h e r
t o make a d v a n c e s on a n a d e q u a t e
was f o r
the
request
advance to
whole c o s t
of t h e G o v e r n m e n t
advance would p r e v e n t
for
o f B a r c l a y s Bank
An a d v a n c e o f £2 p e r
prior
short
has conferred
r e c e n t l y they have been obliged to
Indian growers p r a c t i c a l l y
growers as a
Bank.
The r e p r e s e n t a t i v e s
that
to
At t h e
of S t a t e
r
sums s u f f i c i e n t
on e x p o r t .
in c o n s u l t a t i o n with tiia Treasury,
representatives
the
by
Majesty s
tho Colonies whereby His
G o v e r n m e n t "would a d v a n c e t o t h e
of
be
induced
share l o s s e s
however,
to
G o v e r n m e n t s l o s s e s would
The
the
with
the
be
9 9 ^0
*J (J
limited
to h a l f
of
30$ of t h e
sums a d v a n c e d .
view £300,000 would cover t h e whole
C o l o n i e s i n t h e West
l o s s to the
like
that
West
Indies.
h a s been p r e p a r e d by the
the Treasury to
15,
shall
guarantee
their
losses
of
the
to
the
total
amount t o
telegram to the
is that
the Banks or o t h e r
subject
to
a limit
each advance not
anything
recoverable
end of t h e
ask P a r l i a m e n t
Colonial
per
at the
crop
Indies
with
cent,
of
the
If
of
this
is
shall
to vote as a
by t h e
a t o t a l maximum l i m i t
half
expiration
Government
i n due c o u r s e
Governments
lenders
season.
the'lssse^eotually incurred
scheme w i t h i n
the
of f i f t e e n
1
in aid half
West
in c o n s u l t a t i o n
approved
is proposed that His Majesty s
undertake to
grant
Colonies
under
of £300,000 f o r
the
Indies.
16.
If
the next
the d r a f t
telegram is
s t e p w i l l be t o
representatives
of a l l
and
in M a u r i t i u s
are
prepared
17.
the
as the
offer
this
offer
to
sense that
the
for Mauritius,
liability
one h a l f
their
subject
His Majesty s
1
conditions^
to
of M a u r i t i u s b e a r s t o
Government
and s u b j e c t
is
to
Government to
a round figure
the average
f/est
Indian
be
are
making
t o do t h e
of d e t a i l
£300,000 as the average
6.
Government
telegram to Mauritius w i l l
of H i s M a j e s t y ' s
same p r o p o r t i o n
Indies
co-operation.
t o any m o d i f i c a t i o n s
of £ 2 0 0 , 0 0 0 , w h i c h
to
i n t h e West
which His M a j e s t y ' s
invite
Cabinet,
confidentially
West I n d i e s a n d a r e p r e p a r e d
n e c e s s a r y by l o c a l
total
it
banks o p e r a t i n g
t o make a n d t o
in the
approved by the
communicate
The c o r r e s p o n d i n g
modified
the
the
arrangement.
proposal
t w e l v e months from t h e
vVest
l o s s to
i s hoped t h a t
Colonial Office
embody t h i s
Briefly
done i t
it
I n d i a n Governments w i l l not
The a c c o m p a n y i n g d r a f t
amount
conceivable
Bank'6
figure.
14.
the
But
In t h e
an
same
rendered
overriding
the
Colony
bearing
sugar
of
roughly
export
exports.
18,
The C o m m i t t e e r e c o m m e n d t h e
scheme n e g o t i a t e d by t h e
draft
S e c r e t a r y of S t a t e
t e l e g r a m appended h e r e t o ,
communicate t h e
Governments
Cabinet to
approved arrangements to
the
him to
Colonial
concerned.
Sd
0
PHILIP
SNOWDHJN.
Chairman,
11th,
the
as set out
and t o a u t h o r i s e
Signed on b e h a l f - o f
the Committee.
2, W h i t e h a l l
adopt
Gardens,
March 1 9 3 0 .
6a,
4
in
the
2
FT, TELSGBAM;
"
"
DOS.
ISH GUIANA.
IAICA.
nOAD.
IkRD
His Majesty-s
that
Government
t h e - r e may "be d i f f i c u l t i e s
advanoes for the c u l t i v a t i o n
understand
in
obtaining
of t h e
next
ISLANDS.
WARD ISLANDS.
o r o p o f s u g a r a n d i n o r d e r t h a t t h o s e who a r e wfOing
to cultivate sugar
s h a l l not be p r e v e n t e d
doing so by i n a b i l i t y t o o b t a i n an
for
crop,
to
of c u l t i v a t i o n
purposes
His Majesty's
assist
financial
His Majesty'e
the Colonial
prepared
give,
in connection with
advances within the l i m i t s
that
coming
are
C o l o n i a l Governments to
assistance
advance
of t h e
Government
indicated
Government
Government
from
crop
below.
suggest
should
guarantee
the bank o r o t h e r approved l e n d e r
in respect
one h a l f
and
of the l o s s e s of c a p i t a l
interest
on c r o p a d v a n c e s n o t r e c o v e r e d w i t h i n
months from t h e end of t h e c r o p
that
the l i a b i l i t y
case
s h a l l not exceed f i f t e e n
total
m u s t b e made a f i r s t
case.
The
introduced,
to ask Parliament
by t h e Colony
cultivate
Government w i l l
arrangements His Majesty's
provide half
to
of t h e money,
If the Colonial
be p r e p a r e d
and/or
legislation
and s h o u l d p r o v i d e f o r an o b l i g a t i o n
these
the
advances
c h a r g e on t h e c a n e
n e c e s s a r y f o r t h e p u r p o s e must be
receipt
i n any one
per cent of
s u g a r p r o d u c e d and any f u r t h e r
after
twelve
season^provided
of t h e Government
a d v a n c e made i n t h a t
of
of any l o s s t h a t
make
Government
i n due c o u r s e
may b e
-will
to
incurred
under the guarantee, the
other
tj)
half
the
falling
on C o l o n i a l f u n d s ,
provided
t o t a l l o s s e s to which His M a j e s t y ' s
will contribute half
(Barbados)
( B r i t i s h Guiana)
shall not
Government
exceed
£60,000.
£100,000.
(Jamaica)
£40 , 0 0 0 .
(Trinidad)...
£60,000.
(Leewards)
£20,000 f o r
and £ 1 5 , 0 0 0 f o r
(Windwards)
that
£5,000.
Antigua
St. K i t t