214 Thnchri. 



industries. The whole future of the colony will depend upon the 

 soundness and moderation of the advice given by this Committee. We 

 all sincerely hope that it will not fail to rise to the height of its great 

 opportunity. The problem is not only a financial one, it involves also 

 the necessity of taking measures to secure to the coast industries their 

 labour supply during the period of construction, and migration, at 

 a rate not greatly exceeding the present, in view of the depreciated 

 condition of the sugar market and of the fact that the sugar industry 

 contributes some 75 per cent, both to our exports and to our general 

 revenue. The withdrawal of nine or ten thousand free labourers 

 for the railway would mean the collapse of the industry and the temporary 

 ruin of the colony. 



The question of the construction of a railway has been linked 

 for the moment with the surrender of the treaty privilege of a popular 

 majority in the financial body or Combined Court. To alter this 

 an Imperial Act will be required. Opinion is very much divided 

 as to the advisability and as to the necessity of this suggested sur- 

 render. The actual statutory requirements are those of the Colonial 

 Loans Act, 1899, which require that the loan shall be satisfactorily 

 secured by an Act of the local Legislature. There seems little doubt but 

 that an expression of opinion from the Secretarjr of State, or a statement 

 by him of the financial situation as laid down by the English Treasury 

 woujd produce a satisfactory and virtually unanimous solution. 



In the absence of any other definite proposals I submitted the 

 following memorandum to the Committee and Sub-Committee. It has been 

 adopted in substance and principle by the Sub-Committee. The view of 

 the Committee and of the Colony remains to be seen.* 



* Note. — It has since been adopted by the Committee as embodied in the 

 Sub-Committee's Report. The principal alteration is the substitution of eight ami 

 sixteen years for the proposed six and twelve years' exemption and partial exemption. 

 This would make the payments after eijrht years about £28.000 and after sixteen years 

 about £S4,000 for railways and savannah development. 



