" Timehri " and Development. 203 



;3.) Sea Defences we should deal with either by a loan on some 

 separate basis or out of our developing resources. Some contribution 

 (say £50,000) might be made from the Development loan. 



(4. ) Deficit on Working Expenses, i.e., over and above capital 

 charges. Mr. Bland's figures are a deficit of £10,000 after the first five 

 years. I think he has under-estimated returns if the route is to be a 

 through route. If there is a deficit it can be provided for out of current 

 revenue but I do not think there will be one.* 



The Scheme is based on fifty years amortization and repayment as 

 required by the Colonial Loans Act, 1899. f 



(1) Re RAILWAY LOAN (1£ MILLIONS STG.). 



We ask the Secretary of State to carry us entirely for the first six 

 years, as to half for the ensuing six years, finding the deferred interest as 

 it becomes due and making no provision for Sinking Fund for twelve 

 years. After twelve years we pay the whole interest plus interest 

 on the funded deferred interest, plus Sinking Fund on the total amount 

 spread over 38 years. Labour for the Railway should be looked for to 

 West Indian and local negroes, the most suitable for that class of work. 

 No restriction should be attempted in the movement of labour. 



(2) Re DEVELOPMENT LOAN (f MILLION STG.). 



We ask the Secretary of State to carry us for three years and we 

 then undertake to repay loan and deferred interest in 47 years. This 

 might be altered to four or even five but three should do. 



Four thousand families or possible families, i.e.. groups of two con- This is ° nl y 



ii e i_ /r< t j' a suggestion. 



sisting of not less than one adult person of each sex (hast Indians notahardand 



or Chinese) married or of marriageable age indentured for three years ^^ ^^j 



on the coast properties should be brought in at Government expense, and period of 



At £30 per " family " this would cost £120,000 a year for five years. be^aS™ 7 



It would replace the labour attracted to the railway and supplement 

 the present indenture. The 4,000 families brought in during the fifth 

 year would have indentures running to end of seventh year. The sugar 

 and other plantations and industrial interests on the sea coastlands 

 would be substantially protected from loss during the years of construc- 

 tion, extension and the excitement of any gold discoveries The coast- 

 lands would be developed by the settlement of the imported labour 

 when free. 



* Note. — Mr. Prest has called my attention to tbe fact that Mr. Bland's estimate 

 overlooks the first five years. (The deficit on the first five years should he charged to 

 capital required for the railway.) 



t By this Act interest must be at such rate as will save the Fund from actual loss 

 ami must not be less than 2|%. The price of our money must be fixed by English 

 market conditions. Consols now stand at 75 to 76 and many Colonial Loans are being 

 issued at 99 for 4%. The interest mentioned is a rough approximation based upon wbat 

 our money would cost us. The loan must be satisfactorily secured by the local legislature. 



