B.S.I. Finances Are Sound.

Advisory Council Considers Many Matters Affecting Economic Future of Group.

Tulagi, Dec. 19.

THE annual meeting of the British Solomon Islands Advisory Council took place at Tulagi on November 1.

Members present were: Official.- —Mr. J. C. Barley, acting Re sident Commissioner and President of the Council; Mr. P. C. Hubbard, Chief Magistrate and Legal Adviser; Capt. N.

S. B. Kidson, Secretary to the Govern ment; Mr. F. E. Johnson, I.S.O., Treas urer and Collector of Customs.

Non-official. —Mr. D. Mackinnon, Mr.

G. E. Clift, Major F. R. Hewitt, M.C., and Rev. D. E. Graves.

The session was opened with custom ary ceremony; a Guard drawn from the armed native constabulary under Major Sandars having been inspected, mem bers filed into the Council chamber and took their seats. A number of ladies were present in the audience. The Pre sident announced a message of greeting to members from the High Commis sioner for the Western Pacific (Sir Murchison Fletcher, K.C.M.G.).

In the course of his address to the Council, the President stated that the economic and financial situation con tinued to be of paramount concern in the Protectorate. During the last financial year revenue from import duties fell short of the estimated figures by £11,000; but notwithstanding this large deficit the budget had not merely been balanced, but a surplus of £1,420 had been achieved. The chief contributing factor in this result was a saving in depart mental expenditure amounting to £9800.

The Year’S Trade.

The revenue returns for the first six months of the current financial year jus tified the anticipation that estimated figures would be realised. The draft esti mates before the Council were framed with a view to carrying on essential services without recourse to fresh taxa tion.

An extract from financial statistics showed the following returns for the year under review compared with those of the preceding twelve months;

Whale Oil Threat.

The address in reply presented by non-official members stressed the need for stringent economy in public expen diture. They based a grave note of warning on two main considerations: (1) The continued instability of inter national affairs which conduce to un certain and fluctuating markets, and (2) Recent press reports which an nounce that an unusually large fleet of whaling ships is proceeding to the An tarctic; these reports give rise in au thoritative quarters to anticipations that more than half a million tons of whale oil may be available at the end of the season.

New Buildings.

Two matters relating to expenditure extraordinary were before the Council, namely, the erection of a new Residency at an estimated cost of £2850; and of a public lunatic asylum, the cost of which is not to exceed £815. This new con structional programme being quite un avoidable, members, after inspection of the plans and estimates drawn up by the Superintendent of Works, Mr. S. G.

C. Knibbs, concurred in the expenditure which will be a charge on the surplus funds of the Protectorate.

Several draft Regulations of an un controversial nature were approved, but one making compulsory the keeping clean of all coconut-bearing land gave rise to discussion at some length, and was finally approved after several amendments were debated and agreed to.

Business initiated by non-official members included: (1) Introduction of alien labourers into the Protectorate. (2) Amendment of existing regulations to provide for natives of the Protector ate being responsible for debts incurred. (3) Reduction of export duty on ivory nuts from 15/- to 5/- per ton.

Demand For Imported Labour.

The question of introducing alien labourers has been in the forefront dur ing several sessions of the Advisory Council, and non-official members repre senting commercial and industrial in terests, in the course of reasoned speeches pointed to the increasing urgency of their representations on the ground that intensive prospecting was proceeding in the Protectorate, and in dications strongly favoured the possi bility of a mining industry being estab lished in the near future. In the event of such contingency, the already inade quate labour supply would be attracted

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1931-32. 1930-31.

Imports £157,491 £215,269 Exports £173,628 £800,503 Copra exported ... 21,209 tons 23,681 tons Value of copra ... £137,843 £271,825 Trocas exported ... 462 tons 294 tons Value of trocas ... £19,103 £13,332 Ivory nuts exported . 1,108 tons 724 tons Value of ivory nuts . £8,818 £5,653 Timber exported ... £4,943 £4,683

to the mines by the inducement of higher wages, and the established copra industry, which provides most of the public revenue would be ruined.

Gold mining, it was argued, was much too speculative a business on which to place reliance as a permanent source of public revenue. The establishment of a mining industry was in itself desirable, but it could not be carried on in con junction with agricultural pursuits suc cessfully without a considerable infla tion of available labour supplies. Even without any demand from a mining in dustry imported labourers were neces sary if further agricultural development were to take place.

Natives As Debtors.

The desirability of introducing legis lation to provide for natives being held responsible for debts contracted, it was contended, was clearly manifest.

Through educational and other in fluences they had long since become thoroughly aware of the immunity they enjoyed under a Regulation now 36 years old, and were given to the prac tice of obtaining credit from traders to

the utmost extent and then adopting a policy of repudiation. Of late the Gov ernment had been issuing trading li cences to natives thus creating the an omaly of considering them sufficiently advanced and capable of engaging in business on their own account, while treating them as irresponsible at law for any debts they might contract. The Administration was, as one member put it, encouraging the natives in the prac tice of wilful deceit and deliberate dis honesty; and ethical and equitable con siderations called for the repeal or amendment of the Regulations of 1896.

Export Duties.

Details of the cost of placing ivory nuts on the market and the prices real ised were submitted by Mr. G. E. Clift in support of a proposal to reduce the export duty from 15/- to 5/- per ton Other members concurred, and the President undertook to make favourable recommendations on the subject.

Demand For Economies,

Various amendments connected with the draft estimates were submitted. One

related to the payment of passages to Australia for wives of Government offi cials at periods other than those when they accompanied their husbands on leave. This was strongly represented as undue extravagance, particularly during a period of serious economic depression.

Commercial firms, it was pointed out, did not pay passages for wives of em ployees, even when the latter were pro ceeding on leave, and Government’s dis regard of present conditions and display of selfishness at the expense of tax payers gave rise to considerable public dissatisfaction.

Members recommended the discontinu ance of the annual grant to certain mis sions for technical education as no gov ernment supervision or examination was possible. The substitution of a bonus for each native proved to be competent in the trade he had been taught was proposed.

In reply to questions upon notice, the President announced that the matter of reducing rentals of native leases was still under consideration by the Secre tary of State. He undertook to make the decision known to members as soon as received.