Windwards. —An export trade in bananas has been set up in St. Lucia and Grenada, but the failure of the company principally concerned in it has been a serious set-back. St. Lucia in particular has been severely hit. It had already been in difficulties for some years, having found it impossible to make revenue meet expenditure, and on the 15th May a disastrous fire destroyed practically all the central and business section of Castries, its chief town. Food and clothing have been distributed to those rendered completely destitute, and small loans and gifts of money have been made by the Relief Committee which was immediately appointed by the Governor. Generous grants of money were made by neighbouring Colonies, and a gift of £5,000 from the Imperial funds, to be met from savings on the Colonial Services Estimate, 1927, was tentatively approved by the Treasury pending Parliamentary authority being obtained, as a contribution towards the immediate needs of the Colony. Measures for the rebuilding of Castries and for assisting the sufferers to re-establish their businesses are under consideration.

Trinidad. A proposal has been made for a levy of 3d. per 100lb. on exports of cocoa beans from Trinidad if certain West African Colonies will adopt a similar policy, the proceeds to be devoted to an advertisement campaign, etc., of cocoa, organized by a central Committee in London. This proposal is under consideration. The exports of oil from the Colony continue to expand.

British Guiana.-At the end of 1926 a Parliamentary Commission was appointed to visit British Guiana to report upon the economic condition and development of the Colony and their report was laid before Parliament and published in April, 1927 (Cmd. 2841). The Conservator of Forests has made an interesting report upon his survey of the forests in the triangle between Bartica and the Mazaruni and Essequebo rivers. He has reported that an area of 335 square miles contains 67,000,000 cubic feet of greenheart, besides another 240,000,000 cubic feet of other timber. An engineer lent by the Malay States Government has also made a preliminary railway survey in this area. and is now extending his investigations to the possibility of alternative routes to some parts of the interior.

Imperial College of Tropical Agriculture, Trinidad. The College has made solid progress during the past year. The number of the students and of the staff has increased, and the College has extended the scope of its services to the Colonies generally, and in particular by the appointment of Professor Ballou as Commissioner of Agriculture to supervise agricultural development in the Windward and Leeward Islands. The College has secured invaluable aid from His Majesty's Government, the Empire Marketing Board, the Lancashire Cotton

interests, Nigeria, the Gold Coast, Sierra Leone, the Sudan, and Southern Rhodesia, which has strengthened its standing and financial position.

The outstanding event of the year has been the grant of a Royal Charter and the gracious consent of His Majesty the King to become the Patron of the College. Another matter of importance has been the building, at the cost of His Majesty's Government, of a hostel for students, to be called the Milner Hostel. The work is approaching completion, and will be particularly valuable, not only in facilitating the work of the students but also in promoting a corporate spirit among them.

In short, this institution, due to the enterprise of Sir Francis Watts and the sympathy and foresight of Lord Milner, is making steady progress, and has already proved itself of great value to the tropical parts of the Empire.

Eastern Dependencies.

(a) ECONOMIC DEVELOPMENT.

Ceylon. The principal agricultural industries continued to flourish. The total shipments of tea during 1926 amounted, in round figures, to to 216,000,000lb., as compared with 209,000,000lb. in 1925, and exports of rubber to 58,000 tons, as against 45,697 tons in the previous year.

Mauritius. The sugar industry remained depressed, owing to the present low prices, the over-stocked condition of the market, and to a cyclone which destroyed a portion of the crop early in 1926. 118,795 metric tons were exported from the 192627 crop, as compared with 195,682 metric tons from the previous crop.

Seychelles. A good year was experienced in 1926, the production and exports of vanilla, essential oils, and copra showing increases over the previous year.

A whaling concession was granted, but work has not yet been begun.

(b) TRAINING AND RESEARCH.

Ceylon. The usual work on medical research and preventive measures, designed principally to combat malaria, continued throughout the year. Similarly, the programme of agricultural research and experimental work proceeded on the usual lines.

Mauritius. Anti-malarial and anti-ankylostomiasis campaigns continued to be conducted. Work was commenced on the construction of a central rat-proof granary at Port Louis, intended to mitigate the danger of the introduction and spread of plague.

Increased activity was displayed in experimental work connected with the development of alternative agricultural industries, notably the production of tobacco and aloes-fibre.

The services of an expert on the fisheries of the Indian Ocean (Mr. J. Hornell) were enlisted to examine and report on the marine resources of the Colony.

Seychelles. Mr. Hornell proceeded to Seychelles also, and conducted similar investigations into the marine resources of the waters of Seychelles and its outlying dependencies.

(c) FINANCE.

Ceylon. The financial position continued to be highly satisfactory.

Mauritius. Owing to the depression of the sugar industry, revenue failed to equal expenditure, the deficit being met from the surplus balances of the Colony.

Seychelles. The financial position continued to be highly satisfactory.

Malaya.

In spite of the severe floods which overwhelmed parts of Malaya at the end of 1926, the rubber and tin industries, on which prosperity is dependent, have continued to flourish. A company has been formed to exploit the hydro-electric power resources of the Perak River to the advantage of the tin mines in the Kinta area and, at the request of the Federated Malay States Government, an expert investigation has been conducted into the geology of the Kinta Valley. The important part played by research in economic development has been recognised by the establishment of a Rubber Research Institute. Steps are being taken to bring the Agricultural Department up to full strength, and a new Veterinary Service has been created. A programme for the expansion of the Forest Service has been approved, and a Logging Engineer has been engaged to investigate and report on a scheme for the economic exploitation of timber.

An exhaustive enquiry into the working of the Federated Malay States Railways has revealed certain weaknesses which are engaging attention. Among the objects to be aimed at is the maintenance of closer co-ordination between road and railway development. Progress is being made with the East Coast Railway providing an alternative route connecting Singapore with Siam. Completion is expected in 1929.

The Medical Department of the Straits Settlements and Federated Malay States has lately been re-organised and expanded to meet the increased pressure of the problems of public health, and the staff of the Research Institute has been strengthened. In the Federated Malay States new legislation has been enacted with the object of facilitating anti-malarial measures and of improving the medical and sanitary arrangements on estates and plantations. In the field of education progress has been made in the building and equipment of a new College at Singapore, in memory of Sir Stamford Raffles.

In the Federated Malay States a notable political development has been the delegation to the State Councils of responsibility for questions of local interest, while the Federal Council has been enlarged to deal more effectively with matters of common concern. The Federated Malay States Government has taken advantage of the present tide of prosperity to contribute the sum of £2,000,000, in five instalments, towards the Singapore Naval Base. This generous and statesmanlike action reflects at once the loyalty of the Rulers and people, and the general prosperity of the country.

Hong Kong.

Progress in Hong Kong has been hampered by the disturbed conditions in China. The Colony has come safely through the prolonged trade depression resulting from the boycott of British goods in Kwangtung, and, while the situation is still full of anxiety, there is reason to hope that normal conditions will be restored in the near future. A distinguishing feature in trying circumstances has been the loyalty of the great majority of the Chinese inhabitants.

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Other Dependencies.

Falklands. During the year the Discovery Committee continued their investigations into whales and whaling. Their new ship the "William Scoresby " was completed, and sailed in June, 1926. She is intended especially for whale marking and experimental trawling. Both the "Discovery and the William Scoresby " are now actively employed at sea, but the Discovery "will return to England about October, 1927, for refitting and the working up of her results. The Marine Station at South Georgia operated during the whole of 1926, but has since been closed for the southern winter of 1927. It will reopen in October next.

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Valuable results have been obtained, but much work remains. to be done before the main problems in view can be solved.

Fiji. -Exports exceeded imports by some £290,000, the principal exports being sugar, copra, and bananas. Attempts to establish new industries are being made, particular attention being given to the cultivation of cotton and pine-apples. The initial consignments of Fiji canned pine-apples are said to have had a satisfactory reception in Canada.

An expert report on the forest lands of the Colony is being obtained and is expected to be available shortly.

Arrangements for a new Inter-insular Steamer Service have recently been completed.

The educational arrangements in Fiji were reviewed generally by a Commission whose Report has been presented and is receiving consideration.

A Fijian Infant Welfare campaign is to be instituted in 1927. A scheme for the establishment in Suva of a Central School for the training of Pacific Island Native Medical Practitioners is also well advanced. .

A campaign against the spread of the coconut moth (Levuana iridiscens) has met with considerable success. It is hoped that this campaign will result not only in safeguarding the existing. plantations, but will also open up the island of Viti Levu for coconut plantations. Other problems affecting the quality of Fiji copra are also being investigated, including that of producing better strains of coconuts by artificial pollination and pure line breeding. Banana pests and diseases are also being studied, a cotton experimental station has been opened, and special experimental work is also being undertaken in connection with pine-apples, rice, and tropical grasses and fodder plants.

Since 1922, when there was an excess of Liabilities over Assets of some £243,000, the Colony of Fiji has been faced with a financial problem of considerable difficulty, and the Colony is to be congratulated on the manner in which the problem has been faced. By the end of 1926 this adverse balance had been reduced to £35,000, the amount of the reduction in 1926 being £48,400.

Cyprus.-Expert opinion has been obtained in regard to the improvement of the harbours of the Island, and it is believed that means have at last been found of increasing the water supply from underground sources. Considerable attention is being devoted to the development of the agricultural resources of the Colony, and to the expansion of its export trade and communications.

Cyprus is the second most important silk-producing country in the Empire. Until recently, however, the cocoons, which are of a high standard of quality, were exported abroad to be reeled. A filature has now been established in the Island, by a British company, and it is thought that there are possibilities of developing a considerable industry in Cyprus silk. These are enhanced by the preference which the material receives over foreign silks in the British markets.

Cyprus is rapidly assuming importance as a producer of asbestos. The large deposits of asbestos at Amiandos are now being successfully worked and the output is annually increasing.

In

The Island has not been without its political troubles. November last the Elected Members, who are in a majority in the local Legislature, threw out the budget as a protest against the continued payment by the Island of its contribution towards the Ottoman Debt charge; and it became necessary to assure supply by the passage of an Imperial Order in Council.