Appendix II. 181 



held our signatures from the majority report, because in our opinion the 

 construction of a hinterland railway should not be made conditional on a 

 colonization and development scheme for the coast and river districts. 



We agree with the majority report that the industries on the coast 

 and river districts should be safeguarded so far as possible with respect 

 to labour withdrawn from those districts during the construction of any 

 railway. 



We strongly hold the view that in the event of the Secretary of State 

 declining to make a loan of the amount set down for the development of 

 the coast and river districts, His Majesty's Government should neverthe- 

 less be asked to sanction a loan on the terms suggested in Your 

 Excellency's despatch with which we entirely concur. 



Kespectfully submitted, 



Cecil E. Rice, 

 A. F. White. 



MEMORANDUM BY MR. NUNAN FOR THE COMMITTEE AND 

 SUB-COMMITTEE ON RAILWAY MATTERS. 



The whole question turns upon what proposal to contribute and 

 repay we are able to make to the Secretary of State. He is unlikely to 

 consider a mere grant and we must advance a basis of discussion and 

 negotiation. 



Can this Committee help the Governor in this matter ? His despatch 

 of 5th January implies that the Colony is to assist in the enterprise, 

 paras. 11 (c), 12 (bj and 30. I have been asked to circulate the proposals 

 made in my speech to the Committee at its opening meeting, 20th April, 

 and now do so. 



My proposal is that we should put railway loan of \\ M. Stg. plus 

 deferred interest, interest and Sinking Fund on a separate basis from a 

 Development loan of \ M. Stg. plus deferred interest, interest and Sink- 

 ing Fund and ask the Secretary of State to help us as regards both. 



(1.) I wish to emphasize that we have only Mr. Bland's figures to go 

 on and are not a body of experts ourselves. Whatever doubts we may 

 have as regards under or over estimates of costs or profits in details 

 there is nothing to be gained by dwelling on them at the moment. When 

 a detailed survey is made the estimates can be re-adjusted. At present 

 we should be only wasting time in trying to criticise the only expert basis 

 of discussion we have. 



(2.) If a thi-ough route is successfully constructed harbour construc- 

 tion will be easily managed. Capital will flow in for a loan to improve a 



