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3rd January, 19£!i. 7'

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\ s.fr.Sir.

last Afrjf.an f!i]rr«y^.Y Bs beg to enclose herewith

we hare received from thecopy of a letter

Bast African Currency Boardtogether with a copy of our reply.

.ie desire to Tigorously protest against the arbitrary action of the Government in the

reasons for our attitude are we HOW enolosa.

suggested change and the mentioned in the letter;

f© have the honour to be,Tour obedient Servants, /

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t» thia n^s^mon. ,e^ a« ot opinion th.t the ?^tha plentert ^ not spaciki to iteet ■

soner^l thr,pug}iont the worlfi,prapo-a^d, ohca^ ^-fht, oiW ot the otidden drop will raiBo prlooB and sas-preTl^ugjy existed

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dimdaltUp Lut are

0 not tiipk tiltflic-..

.-Ed We tx«n; B::tcEt relieve the ropitiSE.

lE tho ralue oi t!,a/florin no doubt the native agitation which

>’■ "'-freo liii tofor an iricrei.ee i

''roioned oh.nga wi'; a^riouuiy affect snrehant. ;>» fast Afifida .mi various porta of O e world purtiaiflarly .

in.pn^faqt atocU of r-oods are hold in Hast ifrieu V awaitanir inport thither; t .« ,>rio» of these poedn

Jte^Bsarily hove to be inora-sdd by 301 in' order to‘■-he ooert of the Imiiorts.

nportant inveotmente h ■ Te boon aide on the aesuranoepreBant basis was j ’ t in an ii meiiitite

! era merit one and the change Qoreaoe in the v.lue of such

Tiiero 18 po -iEEuranco th t t m ; ropoeedi Boui-d rbe lermanept -md ifryept'ifi^'adiv.^-.

loco interest i» n colony m ’ ''irbitnirsa^t£

to.it ^ tfe, 2/r iiorl«, wi« r«^i« to (Jlaaii# J| in your of 31|t

^ .tW. af^ngoaont-rtH not. we pr,#«,e, apply to omachango ajprM»aa in atoriing aaturlng after

the the B.W Or^ar-in-CouMil. ©«, vie, i,contraete ehould be payable looall, .,t the

‘te e&lali on due date will oower the Bterllng amount.

ai.

(S) ts tblslc the time to make

praaent is a p rtiotierly inopportwie •oy ohange In currency of the nature

which hae the effect of disturbing existing further uneettling marteta which

preposad con tracts and

are already seriouslydiatiurhed. Be hare not yet had -nsnlting our Branches in Bant Africa

an opportunity of fully---- nor h. 78 wo any

confltoiatios of tho opitical sltuntion in Kenya nd Uganda . whii^ wo^a ceil for euoh iraetic proceedings aonteaplnted.

■iS those Bow -‘iAe praTiottaly 'otatlii our dom is that the -

present peeition i. a world-widt one and not oepoeially / a«*te in Irtt Africa, and *, thini «,* stop the OoTammant jJ haw, in mted should bs i-oforrod baok for further seriotw. :■

Jm

..mYoor obedient S«rTaj,t8.

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In ♦* •OHVMllHT iiak but point out ihat no oha^a^.iraumatanc., l.tter, of^7/li;i9 to C.Sfi\

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T7I a;ii Borry tnat Uub sm been^-ti^a^||^SJ .

during my recent abeence. 'in ,a sf^l \ poBiUon now to feargair witb'4e Coi^y. fe iiav^ j

very little to bffer tn^Would probably Ls able to

' . truth on their eide", txiac ., aye iosing money on tne Sast Afric an

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'at preeent.and the' Oompany>

argue, with a good deal ot . i,'V -Sat the present time uiey

1«A - Tliere •_ wai, . of .^ui^ee, a,^unt of iaa>erial ^

’ ’■ " ' ih oobn^otio, wr4 4f‘lCiiirHU,^.hartou4 /.

•jH -Sb®^■’ ■ I•- termsW,1^e;wtraStJ,t«6>cuntf44r8^^

service.

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uno#tiain. M^ when «« ar* ivM ^af We oanoot, of. ooureev, rafuae''^^^ta^'~^opo«4lYii^^^ the Company (}«rtre to >o± iixm %V^4 “>4 ^

jiiake any propoealB for ah agreapj»tv MV. ffipwood eaid £-A ' that he would be glad if the ■Bp'ard'of T*‘«4«ioouii'\.bf,^^^ informed, aa they mi^t be able to'W tome. atsietance; in any oaee,^- they would like^p 1»i^:w^r ^ waa in the wind.

itlb> •v.

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€S:isMr. Hipwood informed me that-the reiatift^i W

bet/feen tlie Union Caetle and tiie Britiwi liididveo«j|ti«iei*fe-f';;J tere for the time being cjuite friendly.and^Tooul^c^fl^t^.y^ build on any rivalry between them. ' -• > , ..fl'. :

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I ilpLink it wDui4 be better if I .MU Ur.;0r wt^ver the Union G^^^^ormally^d any tiehniial fcdvieer^reaenj^t aify rate in, .the firet:

titi,If you agree, *0 will atk ,tha Dnipp '

to aend a representative to come and see me one day

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an.tsri|g»»ito-pfi»^ ^

teapot,, of. flourBe,;,rfefu8e''^'^(^Mder prop^; CJompany ^oaire to ^u* .them forwai'd;, and if the/•|D^e iny prqpoB&is for .ah'a^eemwt. Mr. Hii^od‘e^d -that he wodld be glad if the&jsrd'of Tr«4«f. ooiild^ieV: informed, as they mibe able to gJ.Tn„«ir-«»b»: -

"^Pletanoe; in any oaae,- they would likffd*( '1ttj»i«'wh8i.t

wmM'

5-it.y

was in the wind.Mr. Hipwood informed me that-the relations

between tiie Union Qaatle and tue Brltiaa India (Soiqpeiiibb^i' terp for the time being quite friendly,and^^^ooui^ Bbt

build on any rivauLry between them.1 think it would be better if I e^ Ur. 1*!^^ |

or 1rh|Mer- the Union Ca»Ue,««fd,informally, and witfiut, >•

If you agree, we will aek .the Unibn Caatle i / ^ to ierd a repree^rJiatiye to coye ard eea loe bne day naxt.P ^w^'-adter Uaiter. . ,• ' :

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::i^^p^"0j4lifeSBoratary of Stats,

J- #-'t •

\ ; Colonial Offloa,

..'trjos, 3.VI.-. V,f m•k ,j.]sir.

W6 !>■',_ to ac!:r.oiTlsa£;9 rsoelpt of ^oiir ooTrmunlcatlon S09l/l9ao, of 7t'. Instai-t, rebate bein^i allyflrea on the

In roapoot of ths question of a pasaafisa of Colonial Cffiolala

travelling to 3aat Africa by this Oonoany' '.'Thlip we Bhoulil be pi jaaed

tennorO. •A v;■'S.to arrange that a

repreaantatlvo of tMa Compa.ny ohoulti attend at, .yiiatever! '

time may ault the ocnrjenIoiir.o of tlio Colonial Office,

»ay that there has been no oiiange Ir, the c Iroa-a tartoea tmilBr whiolt we wrote our letter of 87th 'lovonber !919 *o the Colonial Office, the '.ueatlor. beli,g 4la6 dealt with In letters exchanged with the Crown Agenta for the Colonlaa, irji wroto ua or. the aath January 1920, while we replied on the 87th January 1980 oo the sabjaci.

wrt nay

<lo are, Jlr,

Your obedient Sij^vants;, P«10n-?AfTTj; IIAIL .3mH.q^,|BOMI<i5rY, hlhlTIip,

Ym’V I joa r. t tlana'ger

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^l#'j1S.Joir«r#.■ Mr;H.'Ci‘*ii«6ia0Br8.Or8T#n & Speei^,;- Ilr.T.t<wtl,(ife8ff8,j^^.j{oCona<| Ur.F.Dew (Ueftire & Odl)Ur..?.j^08i (IieBBr8 Fr08t^Br08.)

I. |^;-'Vj-||i^>aB8orto,;*s|ro(Juoiiie the deput.tion.mm.

y;r' |1uinaf«<jfctr«r8:

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i^ilBtry hali been started in East•i.«i eouid be predaoedi |NFt «d

_1 fflstlW* in jreducirg oofflStitr^at the1' FberhWBd unta ths -tat'tijiet dca^ngI *•* from the fall in pricesI ai^ KlB^al depreeBlon ef trade, had affected it adversely.. i Tfaeae were;-

the mum ii.En^and atP a

(lYttw ttabilieaUoo ef the ni^e at 2/y ;V^2)„the pa^t oi official eelariea et 10 nipe

norW to the pcBBd with a l<^^^,flllOTa«Cw of eo percent. I ^e, buaiiMM ^ould n«|j ie baid. etand the loss

|-«f 60^ opnt en^ ooet .«f. produDtKB eet^pd *ith a ||^)r•*»t^8n hr 69 per cent ai ^ price received f^ the /,prJduee; .and, in ahortr'it '

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<ie(n|p^-rui>a(l\tmleBe ,^e He wished tc-^^h8p:*thai;'/'’

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.....l»r4.IVB*A,' Olaasre Fro* Bro«.)-. \ fcard Oranaoi^ irtroducine the deputation.

,.ttpiala^^ th, ^i^ry had|,.y:4lir4«a »t i'4iaa aiaal oauid ha produced ti^a and

Jilt ^ the ■what ii|. i^and at a lower fi^a «gB ^ ^ poaalWa U ihjr^'aiairt prodaoi:^ oo«i^j: toat the

ISlitiBtSy had prqeroaaad uj^il the war, hut that ; ^rt from the f" S^aaaioB «f trade, had affected it

been atarted in Eaat

fall in prioaa • advereely.

Theee wara:-(1) ^ atabilleation of the rugpee at 2/^ ;

i/(2) the pa]#^ of official a^ariea at 10 fltrifia' to the jo^ with a KwaUallowaade of

?ha>iai«aaa ee4dpM t^ cfot on t^-ooat 4;produatiom oa^ad iith »p^ra^tioB hr 86 par cant prioa raoeivad fi^t- that/pr«uoa; ^and, M: '« ii»lh^ifdiaed\unleB8 'thi'

'

I rupeea orhO peroant.;:

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He Wildied t»:

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f♦wint ili^^ttrff* ia;^. TOuntry, «• 'Mid tiUt.« '■

■ «r«riei *f y^dw ’t<a* of iaine wge re<jilred for the United Kingdom harvest alone. He had eiperionoe producer ae well as a manufacturer, aa he had purohaaed a Biaal growing eetate in East Africa and had eunk perhaps £100,000 capital in it. He no* found that he could not pla<^e Biaal on rail in Kenya for leee than £45 a ten; when frei^it charges (£10 a ton) were added, it was clear that it did not pay to produce siaal at the present pripe of £54 a ton, and he had had to close down the plantation.

Bt.Daah a]^MiBed the desirability of using British raw material for the binder twine industry and fraaing the industry fmajaariaao domination of the Burket. He nplained that America now supplied twine to Canada and Europe, and he wee confident that if raw material such as East African sisal were available, the birqpaaa market could be captured for the Britieh trade.

Mr.Temple said that Manila Hemp was now of very poor quality, and that apinners were increasingly relying on sisal. East African sisal was of a much bettar quality than .jHmloan.

88 6

Mr.Craven added that if the trade could be developed, the induatry could eiqployof people than «t prsaant.

Duch l arger number8

then spqljf..ft

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,,^^Q*, .H, qn'otid fi^eS.to ahW-tha^v.du« to .«^tng*. ^/v, ; f

thi.,. Aei,, ^ ^ ■figure. .•lioriii|s;‘«tt|i&,(,%J^|.age^o^Bt' (rf:iria»»%^88l , .. «M neo t»i66 p*r tin f^(>.ti, Kiiindliili- To he tl» oo«t of friBiJbt, rticJi was i^M fijot £10) per t<« and capital chargea. He reoagniaed that the hi^ coat of i^oduotiai and wagee waa worldwide, Imt ooneiderad

■A

that it waa aapaoially hea*y in East Africa owing to theaz<

Hr.Croadjr aaid that the growera on the Coaat were in taich the aame poaition ae thoee in the Hi^ands, and thb time nuat cpma ifhen they nuet oioae down.

Colooel Atwry aaid that there wee no differenrfa' of opinion ae to the ia^ortanoa (rf the aisal taduatry, the deairability ofl drawing raw material a from the tepire, or the neoeaeity for talcing all poaaiUla meaeurea to prevent eo in^ortant an induatry from oloaing down.

He pointed out, however, that the preeant poeition waa not confined to Eaet Africa, and that tne cocoa and palm kernel proaucara in Weat Africa were Buffering in a aimilar way, the coats of labour there having risen more sharply than in East Africa, even allowing for the exchai^e, while there, httli b^^^ ep equal fall in prioes here.

He explained the circumstances in which the baaia he^ been decided upon, and the great advantage of the stability wbioh had been secured. A new ccmplication hadrecently arisen through the unexpected fall of the Indian rupee, end the fuestidn had l^ee^ discueaed fully and openly in East Africa, jjith ^e result that it had been decided nlf) to literre^ati^ of th^ florin to

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««*•* to 'Shor .th«i« M V■ ^;‘;‘' '.' 'tlf'-

. ; ?f*"^ thi» »!•*, quoted fartherf^de. iM»iite''«»«t^,%i^«g6,oa«t rf'iroaaWftS eieal “!,|*® *66 P*f teh fw9.b» lit eilndiai.^ *®** fr«i^, rtich aas art «8 (not ao)per ton «ad capita charges.

j;'' fi

To tWo'huat

He recognised that the high cost of produotioo and cages was worldwide, but oaneideredthat it was •apeoially hea?y in Bast Africa owing to the exchange. Ilir.Crow^ said that the e Coeet weregrcwera <»in nuch the same position ae thoee in the Hi^ands, and the time auat ease When they muet oloae down.

Colohcl Amery said that there wae no difference of opinion ae to the is^ortanoe of tlie si sal industry, the desirability ofl drawing raw materiale from tlie Bmpire, or the necessity for talcing all possible measuree to prevent so iiiq>ortant an industry from closing dowr;

He pointed out, however, that the present position was not confined to East Africa, and that the cocoa and palm kernel proauosrs in West Africa were suffering in a similar way, the coats of labour there having risen more sharply than in East Africa, even allowing for the exohai^, while there, hmil b^, an equal fall in prioea here.

Ha explained the circumstanoes in wliieh the 2/- baais ha^ twen decided up«, and the great advantage of the stability whl^ had been aeoured. A new ccntplication bad

Ae

recently arisen through the unexpected fall of the Indian rupee, and the |weti« had liee^ dieoussed fully end openly in Bert Africa,-jijil* f^e reetat that it had been decided n^t to lAier^'‘Wxiitiig rt^atiqb «f the porin to

i. f -itwrllnB.S‘

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i.

j tl^l thie w^hjfd r^ude oeete of -"1''«l*lt fce question of bringing tie'iftupee itseli ezohai^e veiue, if this should be found

jOBBiiaa. H* polntBi but, hewever, that a ^BpreoiaUiij.Vthe ourrenoy alsoe eolid qt best cause only teBpqre^ili^ii

oontracta, it was very diffioulb tyddi^j^abJ:, J^**n tlhoee made before and after the in^^otlon ■’tea 'iy- baaia. .'

• , Lard Cranabrth ntipreqded' a denbt ar to the officialvote in the Legialatl^ae Council;^ being ttpprejudiert, but it waa pointed out that, the queation relation oftha floria t«f atanling bbing oncesset^i,' tl^ interests of offioiala ewe as »u(* oohcemed in loeerlhg local prices those of anyone ^a.

r

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1^ TO .eaJEqna erf* alaxtaj^eai- oa dnayaiq bf.aawnaem iWiatoq,-^;

,Wnh .Wfobidiad? iifBois ddd,dqdd:,^ioif,jiitfo,^a^^q •«

btm 'fopoo-end dn^d-hba

«eq|%'jBy»ed a’^dd-i‘wrfai'^ pdd;

5,

afi

lO-f^y to a ^tailon, Colonel Amery eald that ha' ' • ■ -1 V-^' X'' ■ • ■

eotild be quite willing to receive a deputation repreeenting all intqi^ata in Eaat if^lda^iftien the report of the local C^nittea tSii^ was conaidarli* future ourrenoy policy

:■ had baeji ryaiaed.^ .!|^e-queation of tkp-. etability of exchange and the

pqirer the Cotrrsgijy BoartfVtq maintain it was discussed, and J ciloonl. toary aaid would ooneider the question of) giving'jy^|«fidi1^-p*" '^: nsintaihad, if applic

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