"poration has rendered invaluable help These witnesses indicated various specific areas in Africa which investigation had distinguished as being suitable for cotton growing; and they expressed the opinion that what has already been accomplished is sufficient guarantee that the Empire is capable of producing very large quantities of excellent cotton. Further, their evidence supported the view that, while certain other difficulties remain to be faced, the primary necessity is for the provision of further transport facilities in the African Colonies and Dependencies. Both these witnesses were strongly of opinion that for this purpose some more elastic methods of financing railway development than those possible at present must be found.

4. In view of the anticipation that, should an extended scheme of railway development be put into operation, orders for large quantities of material would be placed in Great Britain reference may suitably be made to certain views expressed in evidence by witnesses representing the iron and steel and engineering industries.

The Agricultural Engineers' Association on 26th of November 1924, cited as two of the reasons for the unsatisfactory state of the agricultural engineering industry the reduction in the purchasing power of the world and the loss of various export markets; and they agreed in reply to a question, that East Africa was a safe area for development from the point of view of the agricultural engineering industry.

The Iron and Steel Trades Confederation, on 11th of February 1925, having pointed out the importance to the iron and steel industry of its export trade, stated that the volume of exports of iron and steel in 1923 were only 86.9 per cent. of the 1913 figures.

The National Federation of Iron and Steel Manufacturers on 25th of February 1925, in analysing the causes for the inability of the British iron and steel industry effectively to meet foreign competition at the present time either in its home or overseas markets, gave prominence to under-consumption especially in export markets. In reply to a suggestion that the only thing for the trade to do in regard to this question of under-consumption was to try to create demands in new markets, the Federation expressed the view that a potential demand existed and that endeavours should be made to render it effective.

The British Engineers' Association, on 1st of April 1925, pointed out that the volume of exports of machinery in 1924 was only 67.3 per cent. of the 1913 figures and cited as one of the causes of this state of affairs the inadequate demand for engineering products at present prices. The Association expressed the opinion that this under-consumption in many of the markets of the world was due to the inadequacy of their active purchasing power.

The Locomotive Manufacturers' Association, on 17th of June 1925, stated that, while the average annual exports of rail locomotives during the years 1911 to 1913 amounted to 44,614 tons, the corresponding figure for 1924 was 23,563 tons, and the figure for the first five months of 1925 17,437 tons. The Association gave, as one of the main factors which had created this position, the

inadequacy of available markets to absorb the locomotives produced by the increased capacity of the world; and, when asked whether railway development in East Africa would be an important stimulant to the industry, expressed the opinion that everything was of importance which would in any way increase orders placed in the home market since, in their opinion, the locomotive industry was at the present time eating up its reserves.

In view of this evidence that these industries are suffering from lack of demand for their products from overseas, it appears that the placing of orders with them for railway material for use in the Dependencies and Colonies would be of great advantage, both to those industries themselves and to national prosperity generally.

5. An invitation was accordingly sent to the Hon. W. G. A. Ormsby-Gore, M.P., Under-Secretary of State for the Colonies, to give the Committee the benefit of his views on his return from his tour of the East African Colonies and Dependencies, as Chairman of the East Africa Commission. On 26th of May 1925, he explained the definite conclusions of the Commission that the further economic development of these East African territories is dependent on the early provision of increased transport facilities; that little or nothing can be done without liberal financial assistance from the Imperial Government; and that an East Africa Loan Guarantee Bill authorising the issue of a loan for £10,000,000, guaranteed as to principal and interest by the Imperial Government, should be introduced, the money so obtained to be used for railway extensions (in particular the 800 miles of new railway in Tanganyika and 200 miles in Uganda described in the Commission's report), harbour developments and the provision of other transport facilities.

Mr. Ormsby-Gore pointed out that, if the surveys for the new railways which he suggests in Tanganyika are not commenced this autumn, or those in Uganda next year, the expert staffs may have to be disbanded, with the consequence that, should a decision in favour of railway development in those territories be postponed too long, difficulty, expense and delay will be experienced in re-assembling a constructional staff.

6. The Committee appreciate that there are a number of difficulties to be faced locally in connection with the development of the East African Colonies and Dependencies, which will no doubt require time and careful administration to overcome. It will, of course, be necessary to ensure that development is not carried on either more extensively or more rapidly than is consistent with the interests of the native population on the one hand and its capacity on the other. Effective safeguards to the satisfaction of the Imperial Government will no doubt be necessary in connection with the supply and conditions of labour, both for the construction and working of the proposed railways and for producing cotton or other crops. There are, also, serious difficulties in connection with land tenure. Further, it is probable that enquiry could be held with advantage into questions of climate and soil, and into questions of a

botanical and scientific nature; and research may have to be undertaken on a substantial scale into such questions as the spread of the tsetse fly.

The Committee do not wish to appear to minimise the importance of the most careful examination of these problems, with a view to the wisest solution being reached. Their terms of reference, however, instruct them "to enquire into the prospects of British industry and commerce and to make recommendations in regard thereto"; and they feel that, having received a definite suggestion supported by the unanimous views of so important a section of British industry as the cotton trade, they are compelled to look at the problem from the point of view of its effect on trade and employment in this country. In the light of the evidence quoted above, there appears to be no reasonable doubt that British trade and employment would substantially benefit not only from the immediate demand for the products of the iron and steel and engineering industries and the prospective increase of raw cotton supplies, but also, eventually, in many other ways, through the added purchasing power of the population of the African territories affected. While feeling it their duty to call attention to the importance of the local problems which must arise in connection with the proposed development, the Committee do not feel competent as a Committee to express any views as to the best methods of dealing with these, as they have no means of investigating them.

7. It should also be made clear that, as the Committee are not in a position to review suggestions based on a study of the problem in detail on the spot, they are not necessarily recommending the spending of specific sums on, the definite railway lines suggested in the Report of the East Africa Commission. It follows that they are expressing no opinion as to the immediate commercial prospects of those lines, although, even should the railways themselves fail to yield for some time a financial return, there are important compensatory factors to be taken into account having regard to the objects for which the railways were constructed.

8. Subject to the considerations referred to in Paragraphs 6 and 7, the Committee submit in conclusion:

(a) That British Industry, and in particular British export trade, would derive very considerable benefit from the development of the East African Colonies and Dependencies.

(b) That for the encouragement of such development, the primary need is the provision of further transport, in particular railways; and

(c) That in order to secure the building of railways with sufficient rapidity, some additional facilities for meeting the necessary expenditure should be evolved.

30th of June 1925.

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