(b) ECONOMIC Development.

The last returns available show that substantial progress has been made in the economic development of the East African Dependencies. In Kenya and Uganda the exports and trade imports for the last three years indicate the progress made:

The trade imports for the same years amounted to:

The export of cotton has exceeded the figures of previous years. The most marked increase has been in the Kenya and Uganda exports, which show a value of over £4,500,000 in 1925, as compared with less than £3,500,000 in the preceding year. In Tanganyika the exports, although not on a similar scale, showed an increase of nearly 100 per cent. in 1925, and there is every reason to hope that this year will show a large further increase.

Maize exports from Kenya and Uganda rose from £381,000 in 1924 to £417,000 in 1925, coffee from £803,000 to £964,000, and sisal from £397,000 to £531,000. The produce of the native reserves in Kenya also steadily increases, the figures in the last available returns showing that these exports amounted to £480,000 in 1924 as compared with £272,000 in 1923.

In Tanganyika a serious drought affected the country in the early part of 1925, but nevertheless domestic exports showed appreciable increases as compared with the previous year.

(c) COMMUNICATIONS AND TRANSPORT.

The construction of the railway to the Victoria Nile under the assisted loan of £3,500,000 voted by Parliament in 1924 has been carried on, and it is probable that the railway by this time will have reached the Uganda border, which makes the line available to relieve the cotton traffic to some extent over the existing route via Lake Victoria. It is noteworthy that the figures so far received for 1926 show that last year's record for cotton traffic has been easily outstripped, and, in fact, in respect of the first four months of this year the amount of cotton carried has been over 50 per cent. more than that carried in the corresponding period of 1925. This result has been attained by great efforts on the part of the railway and marine staff in Uganda, and by additional transport facilities at the Lake, and additional rolling stock on the railway.. The branch railways in Kenya which are under construction (Nyeri, Solai and Kitale) are approaching completion, and steady progress has been made with the re-railing of the lower section of the old Uganda Railway with a heavier rail in order to carry heavy locomotives which are necessary for dealing with the increased freight.

At Kilindini, one of the two deep-water berths is now open and is being used for lighterage traffic. The second berth will shortly be opened and the two will then be available for the along-side handling of ships' cargo. The future administration of the Port and the arrangements for handling cargo are the subject of a report by a strong local Commission of Inquiry which is now under consideration by the Imperial Shipping Committee.

The most important work under construction in Tanganyika Territory is the branch railway of the Tabora, via Shinyanga to Mwanza Port and Lake Victoria (240 miles). This railway traverses a rich country, well populated, with a progressive type of native farmer, and is highly suitable for cotton cultivation. Seventy-five miles are finished, and it is hoped to complete the whole section next year. Another short but valuable extension of 50 miles has been begun to the coffee-growing district of Arusha. The main trunk road (Dodoma to Iringa section) to the south-west has been partly finished, and should be completed this year. Minor improvements are being carried out at Dar-esSalaam Harbour, but it is already clear that much larger traffic must be provided for, and investigations are being made with a view to a larger scheme.

(d) RESEARCH AND EDUCATION.

Future arrangements for research have been carefully considered as the result of the Report* of the Parliamentary Commission which visited the territories in the latter part of 1924. Plans are well advanced for the development of agricultural research at the Amani Institute in Tanganyika, though it has not been possible yet to fill the post of Director of the Institute, for which very high qualifications are desired. Veterinary research will be pressed forward at Kabete in Kenya as well as Mpapwe in Tanganyika. The International Commission instituted by the League of Nations for the purpose of investigating trypanosomiasis in East Africa is at present in Uganda under the leadership of the Government Bacteriologist in that Protectorate.

In all the East African Dependencies Education is receiving careful consideration under the supervision of the Secretary of State's Advisory Committee for Native Education in Tropical Africa. In Uganda the Makerere College is showing great progress in the training of natives (principally from the Missionary High Schools) for technical work in the Medical and other Departments of the Government. In Kenya a school for the training of native teachers on the Jeanes system has been established, and already is doing useful work. The small school which has been instituted in the Masai Reserve is continuing successfully to carry out its function of bringing a new element of progress into the tribe, which has hitherto been remote from contact with European life. An important conference on education was held at Dar-esSalaam in Tanganyika which has resulted in a scheme for cooperation between the Government and Missions by means of central and local advisory committees.

*Cmd. 2387.

The financial position of the West African Dependencies is eminently satisfactory. With a revenue in 1925-26 of £7,750,000 and an expenditure of £6,750,000, Nigeria possesses surplus assets, including sums advanced to loan works, amounting to £5,250,000 on the 1st of April this year. In the Gold Coast the financial position has proved so satisfactory as to allow of the repayment out of revenue in a lump sum to His Majesty's Government of all the advances made to the Colony in earlier years as well as of the outstanding portion of the Colony's contribution to the cost of the War (a sum total of £136,118).

The Parliamentary Under Secretary of State for the Colonies has recently returned from a visit to the four West African Dependencies, during which he was able to gain firsthand knowledge of local conditions and study the various problems bearing on the development of this area. He is preparing a report which will be laid before Parliament shortly.

(b) ECONOMIC Development.

A scheme is being set on foot for the establishment of the cotton industry on an export basis in the Gold Coast both in the Northern Territory and in the Trans-Volta district. A sum of £30,000 has been set aside out of the Territory's surplus balances for this purpose.

In Nigeria cotton cultivation of the imported American variety is steadily extending. The first distribution of seed was made in 1916 and in the season 1925-26 the total purchases for export amounted to 37,000 bales of lint as compared with 26,000 bales in the preceding season. It is hoped that with more areas coming under cultivation the crop for next season will reach 50,000 bales. In the Southern Provinces of Nigeria research is being made with a view to the production of a strain of native cotton which will yield a staple suitable for export. Though it is too early yet to say whether these efforts will be successful, there seems to be good reason to hope for a satisfactory result.

The cultivation of cocoa is also being extended. Although exports from the Gold Coast were, in 1925, less by 10,000 tons than in 1924, a decrease accounted for by a severe drought in January and protracted heavy rains in the autumn, the export of this produce has shown marked development over the last few years in Nigeria. A satisfactory feature in that territory is the introduction of a system of grading cocoa which has been successful in obtaining higher prices for the more carefully prepared beans.

In regard to the other main crops of the West African Dependencies, the export of ground-nuts from the Northern Provinces of Nigeria did not last year attain so large a figure (125,000 tons) as marked the season 1924-25, as the low prices current did not encourage the export of the full surplus crop available which, however, was believed to have been in the neighbourhood of over 150,000 tons.

and tin, the 1924 figures are the latest available and the export figures of all three of these products constituted a record for the Dependency, namely, 127,000 tons and 253,000 tons respectively. The tin industry in the Northern Provinces was able to increase its production with the rise in prices, and in 1924 the output of tin concentrates was as much as 8,852 tons.

From the Gold Coast the export of manganese was approximately 340,000 tons last year as compared with 107,000 tons in 1921, and the export of mahogany showed an increase of 10 per

cent.

(c) COMMUNICATIONS AND TRANsport.

In the Gold Coast good progress has been made in the construc tion of the Central Province Railway. The survey is now complete and it is anticipated that the whole line from the junction with the Sekondi-Kumasi Railway as far as the present northern terminus will be open for traffic towards the end of this year. Excellent progress has been made with the extension of feeder roads for the railways and coastal and other roads and also in the Tarmet conversion of several main trade roads.

Progress in the construction of the deep-water harbour at Takoradi has been well maintained, and it is hoped that matters will be sufficiently advanced by the end of the current year to enable the contractors to use the harbour to facilitate landing their own material at the deep-water wharves. The contract date for completion is the end of 1928.

In Nigeria, which has 1,265 miles of railway open for traffic, the Eastern Railway from Port Harcourt to Kaduna (340 miles) is now nearing completion; construction has been begun on a new branch line to Gusau (114 miles) whilst investigations for other possible branches are being undertaken. In order to allow of the passage, of heavier trains and engines the main western line between Zaria and Kaduna is being re-laid with 60 lb. rails.

There are already 4,200 miles of roads open for motors throughout the year and a further 1,800 miles is under contemplation. In addition to these there are numbers of other tracks which can be used by motor transport in the dry season-when most of the. crops are moved.

Nigeria has the advantage of the two great rivers, the Niger and Benue, and it is possible at high water for ocean steamers of considerable size to use these waterways for some considerable distance. The new Apapa wharves and warehouses are already partly in use, and will shortly be completed and opened, while at Port Harcourt, the terminus of the Eastern Railway, extension of the existing wharves is in progress, and the construction of a coal-loading wharf with modern machinery has been commenced.

The production of coal at Enugu Colliery on the Eastern Railway can be largely increased, and it is expected that the completion of the line and the new arrangements for handling coal at Port Harcourt will bring about a largely increased demand both for export through Port Harcourt and for the tin industry.

(d) MEDICAL, RESEARCH AND EDUCATION.

During last year the medical staff in Nigeria has gradually been increased and the number of vacant posts is now less than at any time since 1914. It has been found possible to increase the staff of the Research Institute and to extend hospital facilities in numerous stations. The Veterinary Department has established a laboratory in Northern Nigeria for producing anti-rinderpest serum, and the facilities offered have been successfully brought to the notice of the owners of the large herds of native cattle which exist in the Northern Provinces and with which epidemics of rinderpest and pleuro-pneumonia have played havoc from time to time. The Government maintains a large and well-equipped agricultural research station at Ibadan, and it is intended that future candidates for this department of the Government of Nigeria shall be trained in tropical agriculture at the Imperial College in Trinidad.

Experiments have been successfully carried out in the Gold Coast in the local production of plague vaccine. Another notable activity in this territory has been the successful use of a mobile laboratory in prolonged tours devoted to tsetse fly investigation.

The foundation of an Infant Welfare Centre was laid at Accraj in June last year, and the establishment of others in convenient areas is in hand. The work on the Prince of Wales' College at Achimota is now well in hand, and it is anticipated that the Kindergarten and Lower Primary School will be established temporarily in January next year.

3. The West Indies, Bermuda, British Guiana and British Honduras.

From the West Indies area the most important increases of exports are in oil from Trinidad and bauxite from British Guiana, which have appreciably exceeded last year's figures. In Jamaica legislation has been passed to provide for the inspection and grading of produce for export, and a Select Committee has also been appointed to consider the question of providing better facilities for the transportation of fruits and other products to Europe. This Committee has presented a unanimous report, which is now under consideration.

A matter of interest in regard to another island in the West Indies is Sir Francis Watts's Report containing recommendations for the encouragement of new industries in Dominica; His Majesty's Government have been able to accept these recommendations in principle, and have agreed to provide this year the funds necessary for carrying them into effect. The work of reconstruction necessitated by the damage caused by the hurricane of 1924 in this island has now been completed, and new and improved buildings erected.

Of other matters of importance to the West Indies it should. be mentioned that the new buildings of the Imperial College of Agriculture have been completed, and the College is now installed