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with the recommendation of the special Financial Mission appointed by the Secretary of State for the Colonies in 1925 to enquire into the financial position and prospects of the 'Iraq Government. The report of the Mission was presented to Parliament in June, 1925, as Cmd. 2438.

Apart from the Imperial garrison, the only services of importance to which British Revenues still contribute in 'Iraq are, as stated last year, (1) the High Commissioner's establishment; (2) the 'Iraq Levies; (3) a Grant-in-Aid towards the maintenance of the 'Iraq Army. In Palestine His Majesty's Government have agreed to contribute in the year 1927 a sum of £45,000 towards the cost of the Frontier Force which was created in 1926 as part of the scheme introduced for the reorganisation of the Defence Forces of Palestine and Trans-Jordan. British Revenues also contribute a Grant-in-Aid of £62,000 towards the cost of the Administration of Trans-Jordan. A sum of £31,000 is included under the new Subhead "Appropriations in Aid," as a contribution from Palestine Revenues towards the cost of the Imperial garrison. Under this Subhead is also included a contribution from the Government of India of £250,000 towards the military and political charges in connection with Aden.

July, 1927.

NOTES ON MATTERS OF GENERAL INTEREST.

Colonial Office Conference, 1927.

Perhaps the most outstanding recent feature in connection with the progress of the Colonial Empire has been the Colonial Office Conference which was held at the Colonial Office from the 10th to the 31st May, 1927.

The inception of this Conference, which was admittedly of an experimental nature, was held to be so amply justified that in all probability similar Conferences will be held every three years in future. Twenty-six Governments were represented, and the general exchange of views on problems of common interest was found to be very valuable and stimulating both to the Colonial Office and to the Oversea Governments represented. The Agenda, which were of a comprehensive and varied nature, contained among others the following items:

1. Recruitment and training of Colonial Civil Servants.
2. General conditions of service of officers in the Colonial
Service.

3. Relation of technical to administrative services.

4. Co-operation and exchange of information.

5. Colonial Trade Agencies in London.

6. Civil air development in the Colonies.

7. Developments in mechanical transport.

8. Wireless communications and broadcasting.

9. Forestry.

10. Medical and Public Health questions.

11. Education.

A full summary of the proceedings and conclusions of the Conference will be found in Cmd. 2883 and Cmd. 2884*.

East African Dependencies.

(a) GENERAL.

Kenya. - Uganda.- On the whole, the financial position in East Africa continues to reflect a satisfactory rate of development. In Kenya the budget for 1927, after allowing for extraordinary expenditure amounting to nearly £100,000, showed a considerable surplus, and in Zanzibar, where at first a deficit on the year had been feared, later reports now point to the probability that the satisfactory state of the Protectorate's finances will be maintained. In Uganda, however, the low prices obtainable for cotton have reacted unfavourably on the revenue, and it will be necessary to have recourse to surplus balances which have been built up in previous years to carry on the programme of necessary public works.

At the beginning of the present year, a general election took place in Kenya for the return of European non-official members to the Legislative Council, and the members who were elected have undertaken to press for a European elected majority over all parties in the Council, and to endeavour to further a scheme of co-ordination between the Northern East African Territories. It is satisfactory to record that the Indian community in this Colony have now decided to participate in the elections to the Legislative Council on the basis of a communal roll. The Indian community in Uganda have also agreed to the nomination of one of their number to the Protectorate Legislative Council. A number of important enquiries have been instituted during the year by the Government of Kenya; the Local Government Commission, of which Mr. Justice Feetham was chairman, and the visit of Professor Sir Rowland Biffen to study the wheat industry of the Colony, being particularly worthy of note. The Governments of Kenya, Uganda, and Tanganyika are sharing in the expense of a scientific enquiry into the fisheries of Lake Victoria. During the year a Conference of the Law Officers of the East African Dependencies was held with a view to bringing about greater unanimity and co-ordination between the laws of the respective territories, particularly those relating to commerce. The Anglo-Italian Commission which was appointed to demarcate the new frontier between Kenya and Italian Somaliland as a result of the cession of Jubaland to Italy in 1924 has now completed its work in the field, and is holding its final session in Florence.

*Note:-Cmd. 2884 will shortly be published.-July, 1927.

Tanganyika Territory.-Nyasaland.-Northern Rhodesia.— The general financial position of Tanganyika Territory continues to be satisfactory.. The revised Estimate of Revenue for 192627 (including revenue from the Railway, which is now paying its way) was £2,142,950, as against £1,975,950 in 1925-26.

In Nyasaland the revised Estimate of Revenue for the year 1926-27 is £325,431, exceeding the approved Estimate by £8,000. In Northern Rhodesia the revised Estimate of Revenue for the year 1926-27 exceeds the approved Estimate by £27,439, and a large increase is anticipated for the year 1927-28.

The system of indirect administration through native chiefs, which was set up in the Tanganyika Territory last year, is now well established. Approval has recently been given for the grant of a loan of £5,000 from public funds to the native administration of the Masai, for the purpose of improving water supply and conservation in their reserve. A Labour Department, consisting of a Labour Commissioner and three Assistants, was formed during the year. This Department collects information and statistics regarding the labour supply, examines labour conditions, and advises generally on recruiting and care of labour. A labour camp for natives travelling to or from plantations has been constructed at Kilosa, and another camp will shortly be established at Handeni, on the North-East labour route. The Labour Commissioner reports that the labour situation is better now than it was a year ago, and that there is every reason to expect a further improvement during the year.

By agreement with the Belgian Government a Joint Boundary Commission has been appointed and will shortly proceed to carry out an intensive demarcation of the Congo-Zambesi watershed section of the Belgian Congo-Northern Rhodesia boundary, where accurate demarcation is of great importance owing to mining development on both sides of the border.

(b) ECONOMIC DEVELOPMENT.

Kenya and Uganda.- The following table gives particulars of the imports and exports of Kenya and Uganda for 1926 as compared with the previous year :

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The fall in the total value of imports and exports is due in part to the price of cotton and a shortage in the yield of a maize crop, together with a drop in soda exports, but the industrial situation in Great Britain in 1926 also affected unfavourably the trade of these territories.

The exports of cotton in 1926 showed a decrease in value of £1,637,399 as compared with the previous year. The exports of maize were £280,596, as against £416,964 in 1926, and of coffee £895,080, as against £963,920. The value of sisal exported rose from £531,129 to £579,499.

The percentage of total imports into Kenya and Uganda from Great Britain was 37.12, as against 38.06 in 1925 and 39.90 in 1924. The percentage of exports going to Great Britain was 49.5, as against 56.4 and 42.8 in the two preceding years.

Tanganyika Territory.-Nyasaland.-Northern Rhodesia.In the following table particulars are given of the imports and exports of the Tanganyika Territory in 1926, as compared with 1925:

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Cotton exported from the Tanganyika Territory in 1926 reached the record figure of 109,450 centals of pounds, as compared with 56,927 centals in 1924 and 49,100 centals in 1913. The export of sisal fibre (a purely non-native crop) has passed pre-war production, 25,002 tons being exported as against 20,834 tons in 1913.

The value of the external trade of Nyasaland, including domestic imports and exports and goods in transit to and from neighbouring territories, but not including Government imports nor specie, reached a total of £1,637,729, the largest figure ever recorded, exceeding the previous year's total by £343,429, or 26.5 per cent.

The following comparative figures show the value of imports and exports in 1925 and 1926:

1925 1926

...

Imports. £ 591,654 791,054

Exports.
£
564,925
671,086

...

Total Value of
Trade.

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The most noteworthy feature of the export trade is the quantity of tobacco shipped during the year, which, in spite of adverse weather conditions, established a record, viz., lb.9,142,437, exceeding the quantity exported in 1925 by lb.2,224,998. The ever-increasing activity in tobacco production is attributed mainly to Imperial preference, and to the stabilisation of the preferential duty for a period of ten years. 42 per cent. of the tobacco exported was of native production.

The Director of the Imperial Bureau of Mycology has recently visited Nyasaland for the purpose of advising European planters on the subject of tea diseases.

An expert will shortly proceed to Northern Rhodesia for the purpose of investigating the forest resources of the territory, as recommended by the East Africa Commission.*

(c) COMMUNICATIONS AND TRANSPORT.

Kenya and Uganda. It is expected that the through railway line from Mombasa to Jinja on the Victoria Nile will be ready for open traffic during 1927. The working of the existing line to Kisumu and of the steamer service on Lake Victoria has been much improved, and the High Commissioner for Transport was able to report in June, 1926, that no complaints had been received regarding congestion of cotton traffic during the preceding year. The extensions of the main line in Kenya to Kitale and Solai have been opened for public traffic, while the Nyeri extension has been opened as far as Nyeri, and a further extension to Rongai is expected to be opened during 1927. Provision has been made from loan funds for the commencement of the branch line from Tororo to Mbale in Uganda. The continuation of the main line from the Victoria Nile to Kampala has been decided on, but the route of this line is at present under consideration. The two deep-water berths. at Kilindini have now been completed and are in use, and the construction of a further two berths has been begun.

Following upon consideration of the recommendation of the Mombasa Port Commission, an agreement has been arrived at between the Kenya and Uganda Railway and the lighterage companies at Mombasa for the general working of Mombasa port.

Tanganyika Territory.-Nyasaland.-Northern Rhodesia.It is hoped that the Tabora-Mwanza Line at present under construction in the Tanganyika Territory will be opened for through traffic to Mwanza in March, 1928. At the end of 1926, 117 miles out of a total length of 237 miles had been completed. A detailed survey to determine the route of the extension of the

*See Cmd. 2387.

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