Tanga Line from Moshi to Arusha (as approved by the Guaranteed Loan Committee*) has been carried out, and construction. will now begin. Surveys of certain other lines provisionally recommended by the Guaranteed Loan Committee have been carried out, and reports on these surveys will shortly be received. The re-laying of the Central Line with heavier rails was completed during 1926.

It is hoped that the Dodoma-Iringa road, of which 52 miles have been constructed, will be completed in September, 1927.

The construction of a new wharf at Dar-es-Salaam has been continued and nears completion; foundations have also been put in for new Customs sheds.

In Nyasaland certain of the surveys recommended by the Guaranteed Loan Committee in connection with proposals for the extension of the railways and the construction of a bridge over the Zambesi have been carried out, and the reports on these surveys are now under consideration. Other similar surveys are still in progress. An extensive road programme to facilitate transport of native-grown tobacco and other produce is in progress.

Northern Rhodesia has embarked on a road programme approved by the Guaranteed Loan Committee.

(d) RESEARCH AND EDUCATION.

In

Kenya and Uganda.—An Agricultural, Cotton, Entomological, and Mycological Conference, attended by representatives of the East African Dependencies, and of the Empire Cotton Growing Corporation, the Belgian Congo, Italian Somaliland, and Portuguese East Africa, was held in Nairobi in August, 1926. Uganda the work of the Sleeping Sickness Commission, under the auspices of the League of Nations, at Entebbe has been continued for a further six months up to June, 1927, and arrangements are being made for the continuation of the work of the Commission in Uganda after that date. The question of education continues to receive the careful attention of Governments, and the provision of suitable school premises is being dealt with in Kenya by the allocation of money from loan funds. The work of the Jeanes Native Teachers' School is being extended by the provision of additional staff. The work of the Makerere College in Uganda is being supplemented by the opening of a new Government Intermediate School, and a Normal School for the training of teachers is also about to be opened. In Zanzibar this year a new departure is being made by the provision of funds for the education of Arab women.

Tanganyika Territory.-Nyasaland.-Northern Rhodesia.A Director has been appointed to the Amani Institute, and arrived in the Tanganyika Territory early in 1927. He is to return to this country in October, 1927, to prepare a scheme for the future organisation and working of the Institute.

*See Cmd. 2701.

Special provision has been made in the Tanganyika Territory Estimates for 1927-28 for an extensive medical campaign among one particular tribe in the Kahama area in order to obtain information and statistics as to the physical progress of a typical section of the native population. A sum of £70,000 has been set aside, from Guaranteed Loan Funds, for Tsetse Fly Research in the Tanganyika Territory for a period of five years, and steps are being taken to appoint the staff of skilled scientific investigators necessary for the research programme.

In Nyasaland approval has been given for the initiation of measures for the co-ordination of the educational work of the various Mission Societies, who will receive increased grants from the Government and will at the same time come under Government inspection and control. A Board of Education is to be formed and an inspecting staff is being appointed.

In Northern Rhodesia the establishment of the new Agricultural and Veterinary Station at Mazabuka is in progress. The necessary buildings are under construction and the senior Agricultural Research Officer has been appointed.

West African Dependencies.
(a) GENERAL.

Nigeria. The revenue for 1926-27 was £7,411,983, or nearly £800,000 less than the preceding year. The expenditure was a little over £8,000,000, and, in addition, nearly £2,000,000 was spent from loan funds. The surplus of assets on 31st March, 1927, was over £5,500,000. A heavy programme of public works is being undertaken. During 1926-27 the approved public works expenditure was £1,604,966; for 1926-27 the estimate is £1,829,734.

It has been decided to extend direct taxation to the Colony of Lagos and to those parts of the Southern Provinces which have hitherto been untaxed. Such extension is desirable, not merely on grounds of uniformity and equity but primarily in the interest of the people themselves. The introduction of direct taxation in any area of the Nigeria Protectorate is invariably accompanied by the creation of native treasuries, into which half the proceeds of the tax is paid. The creation of native treasuries enables the native administrations to carry out the functions of local government in a manner most appropriate to local needs and conditions. Experience has proved that the native administrations and treasuries are the most potent instruments for the stimulation of local patriotism and local development, and for inculcating in the chiefs and local authorities a sense of their responsibilities to the communities entrusted to their charge.

Gold Coast. In the Gold Coast the financial position shows a further improvement, revenue in 1926-27 being approximately £4,360,000 and expenditure £4,310,000, with a surplus balance of just under £2,000,000 and reserve funds amounting to £981,000.

(b) ECONOMIC DEVELOPMENT.

Nigeria. The year 1926-27 was one of considerable difficulty largely owing to the low prices offering for most of Nigeria's staple products, to a partial failure of the palm oil and cocoa crops due to deficient rainfall, and to the general trade dislocation consequent on the coal strike in Great Britain. Despite these drawbacks the value of the import and export trade in 1926 was £30,500,000, only £3,000,000 less than in 1925 and in excess of any previous year except 1920. Shipments of cotton lint amounted to 179,315 cwt., or 46,591 cwt. more than the quantity exported in the record year of 1925. The cocoa shipments were greater than any previous year except 1925, being no less than 39,096 tons. Exports of groundnuts amounted to 115,434 tons, almost double the quantity exported in the best year prior to 1925. The quantity of tin ore exported reached the record figure of 10,558 tons, more than 1,000 tons in excess of the best previous record.

Much attention has been devoted to the subject of the palm products industry in view of the extended cultivation of the oil palm in the East. A scheme has been prepared to assist merchants to erect a certain number of central factories, which would to some extent be protected by Government against loss. A produce inspection scheme was started in April, in co-operation with the merchants, and has been most successful in raising the quality of Nigerian exports. The Veterinary Department conducted an active immunisation campaign against rinderpest. The native cattle-owners appreciated the benefits and travelled great distances to have their cattle inoculated. The area of the forest reserves was slightly increased, and further extensions are in prospect.

Gold Coast. The export of cocoa for 1926 constitutes the record of 231,000 tons, as against 223,000 tons in 1924. Steps are being taken to safeguard this, the staple, industry, and foundations for new export industries are being laid. As regards forestry, the wooded areas essential to the safety of the cocoa industry are being preserved from destruction by the policy of establishing forest reserves by legislation.

Sierra Leone.-In Sierra Leone an interesting feature during the last year has been the discovery that the country possesses mineral resources. Extensive deposits of high-grade hæmatite ore have been found in the Protectorate and are likely to be worked, in a short time, by a long-established West African firm. The products of the oil palm form from 70 to 80 per cent. of the exports of Sierra Leone, and the country ranks third among the world's producers of palm kernels. Efforts are being made to develop this industry on more scientific lines. With this end in view the Colonial Government is laying out a model plantation

of 2,000 acres, and endeavours are also being made, by the introduction of hand nut-cracking machines, to increase the yield of kernels from the wild palms scattered over the Protectorate.

(c) COMMUNICATIONS AND TRANSPORT.

Nigeria. The Eastern Railway from Port Harcourt to Kaduna, with its branch to the tin mines at Bukuru, was completed. The first deliveries of coal from the Government colliery at Enugu to the tin mines, over the new line, were made in October. Nigeria has now two main arterial railways, and it is considered that the best policy is to push on with branch lines which are likely to be rapidly remunerative. Of late years the annual rate of new railway construction in Nigeria has been 100 miles, but in the construction of the new branch lines it is hoped to reach an average of 150 miles per annum. The cost of a fiveyears' programme of construction at 150 miles per annum may be roughly estimated at £6,000,000.

Great attention is also being paid to the construction of new roads. The Government aims at a programme of 400 miles of new roads per annum, and a special Roads Section of the Public Works Department has been constituted to supervise the work.

Gold Coast.-The Central Province Railway was by October last opened to traffic up to the 81st mile, and the remaining 18 miles may be similarly completed during the present summer. Excellent progress has been achieved in the construction of the Takoradi Harbour, and it may confidently be anticipated that the work will have sufficiently neared completion to permit of the opening of the harbour in time for the 1928-29 cocoa season. Further considerable progress has also been made in the railway feeder roads of the Colony.

Sierra Leone.-Sierra Leone's greatest need to-day is roads. At present an area of 27,000 square miles possesses less than 400 miles of motor roads. The Colonial Government is devoting what money it can to improving this position. £67,000 has already been set side for five trunk roads, and the appropriation of another £50,000 for road-making is under consideration.

(d) MEDICAL, RESEARCH, AND EDUCATION.

Nigeria. With the exception of Lagos and its hinterland, where plague is present in epidemic form, the general health of the population has been good. A plague expert, lent by the Government of the Union of South Africa, visited Nigeria during the year, and all his recommendations have been adopted. A special plague staff has been organised, and it is hoped to eliminate plague in its epidemic form. The problems of sanitation and town planning in Lagos are receiving attention, and experts on each subject have visited the city. The special staff which is investigating the tsetse-fly problem in the Northern Provinces was increased, and carried on researches and experiments on a large scale throughout the year.

Eleven new Government schools were opened in the Northern Provinces during the year, and the interest of the Native Administrations in education was well maintained. A new Education Ordinance was passed in the Southern Provinces.

A Board of Education has been constituted, the co-operation of merchants, missionaries, and educated Africans has been secured, the staff of the Departments has been increased, and much useful and promising work has been accomplished.

Important experiments have been continued with a view to evolving an improved strain of "native" cotton suited to the Southern Provinces. Medical and veterinary laboratories have been enlarged, and the geological survey of the tin fields was completed.

Gold Coast. The Research Institute has done some valuable investigation work in regard to plague and the bacilli of dysentery. A report has been produced on the white ant problem.

The formal opening of Achimota College and School took place in January of this year, when sufficient buildings were completed to allow of the opening of the Kindergarten Section. The full opening of both College and School may be anticipated in January next.

The West Indies, Bermuda, British Guiana, and British

Honduras.

Bermuda. The policy of increasing the port facilities for ocean-going vessels has been continued, and £20,000 from loan. funds has been voted for the further dredging of the narrows. Active negotiations have also been continuing for the construction of a light railway.

British Honduras.-Attempts are being made to establish a grape fruit export industry, and some £2,000 worth of fruit was exported last year. The increase in the trade of the Colony is worthy of mention. This has risen from 6,100,000 dollars in 1922 to 8,900,000 dollars in 1926, an increase of 46 per cent.

Jamaica.-A Producers' Association has been established to assist in the development of the fruit export trade, and is receiving a grant from the Empire Marketing Board of £1,200 per annum. Various proposals have been made to the Government. of the Colony for the establishment of a direct line of fruit steamers between Jamaica and the United Kingdom, and this question continues to receive close attention.

Leewards. -Dominica.- A policy of assisting agricultural enterprise on lines recommended in Sir Francis Watts' report is being followed, but has not yet been able to produce its full effect. The deficit in the Colony's finances is, however, decreas