the near future. The object of the ordinance is, by the establishment of village councils, to regularise the authority already exercised by the elders of the village community on the same principle as that followed in the cases of the nomadic and semi-nomadic tribes. The careful and gradual application of this and the Nomad Sheikhs Ordinance will, it is hoped, provide a basis on which the structure of elementary self-government can eventually be built up throughout the Northern Sudan.

11. Amongst the backward tribes of the Southern Sudan the object of administration is primarily to establish confidence in the Government, to maintain public security by the prevention of intertribal warfare and to develop such elements of native authority as can be found. Even here the application of our broad principle of administrative policy is not impossible. In nearly every tribe traces of an ancient governing organisation are evident, dormant rather than dead, its decline due to constant feuds, migration or famine. Native institutions exist in some form or other and need only patient and careful nursing to make them of practical administrative value. To this end the system of chiefs' courts, known as Lukikos Courts, with judicial powers has been inaugurated, and although the experiment is still in its infancy, it has been sufficiently examined and tested to give a clear indication of its efficiency as a channel of indirect administration. In some districts of Mongalla and the Bahrel-Ghazal Provinces chiefs' courts have already proved a success, and their gradual extension in both these provinces is under consideration. Their present popularity is a sure guarantee of future possibilities, and the administration of tribal customs under Government authority and supervision is widely appreciated.

Personnel.

12. I have to record with regret the retirement on pension of the following officials: Lieutenant-Colonel R. V. Savile, C.B.E., Governor, Darfur Province, and Mr. B. Burnett, Director of Public Works.

13. Lieutenant-Colonel Savile was seconded from the Egyptian army as an inspector under the Sudan Government on the 1st January, 1902. In the course of a period of nearly twenty-two years he served in Kassala, Dongola and Khartoum Provinces, was Governor of the Bahr-el-Ghazal Province, and was Governor and Officer Commanding District of Kordofan and Darfur Provinces, to the latter of which he was transferred on its formation in 1917. In all the appointments he held during his long and varied service. his work was marked by firm but kindly and popular administration and capable organisation. During the difficult period following the occupation of Darfur he guided the destinies of that large province with unfailing care and sympathy, and the results of his labours are already apparent in the material progress achieved in the face of many obstacles.

14. Mr. B. Burnett joined the Sudan Government as Chief Mechanical Engineer of Port Sudan Town and Harbour Works on

[12154]

B 4

the 23rd March, 1906.

After holding the posts of Chief Engineer and Assistant Director, Public Works Department, he was appointed Director on the 12th March, 1918. The period during which he held this post was one of great economic difficulty, and the manner in which he controlled the expenditure of his department, obtaining a maximum result on a minimum of expenditure, is greatly appreciated by the Government he served. In addition to his departmental duties, he was also a prominent member of a number of advisory and executive committees in connection with the Central Administration.

15. By their retirement on pension, the Government has lost the services of two capable and valuable officials.

Abyssinia.

CHAPTER II.-FRONTIERS.

16. Mr. A. W. Hodson, C.M.G., was appointed His Majesty's consul in South-West Abyssinia, in succession to Major E. B. Hawkins, D.S.O., and left Addis Ababa for Maji in April.

17. The hopes entertained of the new local Governor, Dejazmatch Moukria, referred to in last year's report, were unfortu nately not realised. During Mr. Hodson's absence from Maji in November, a series of raids was carried out on Shangalla tribes between Maji and the Sudan frontier. Some of the raiding parties crossed the frontier into Mongalla Province, and the explanation given was that this had been done in pursuit of Abyssinian tenants. In consequence of reports by Mr. Hodson, the Abyssinian Government, at the instance of His Majesty's Minister at Addis Ababa, sent orders to Maji for the Governor's recall.

18. In Western Abyssinia fighting occurred in July and August between Khojali Hassan, who took the field himself, and Ibrahim Abdel Rahman, which resulted in the capture of the latter. In the course of the fighting, some 330 refugees crossed the Sudan boundary into the Fung Province.

19. In March a force of Abyssinians made a descent on the Burun villages on the Khor Daga, near Warra Garra, in Sudan territory. The Burun got early information of the intended raid, but ten were reported to have been killed. Further enquiries were in progress at the end of the year. There is little doubt, however, that the raid took place well within the Sudan boundary, as generally recognised.

20. A police patrol from Sofi Post encountered a party of eight Abyssinian poachers on the Atbara River, near Wad Aru. Shots were exchanged and the poachers withdrew. Bands of poachers were also active during the year in the unadministered portion of the Eastern District of Mongalla Province. The Sudan Government has been in communication with the Governments of Uganda and Kenya, with a view to arriving at a larger measure of local co-operation in curbing the activities of these poachers and preventing tribal raids.

21. As foreshadowed in last year's report, the Sudan Government, having taken over the administration of Didinga, arrangements were made that this district, together with that of the Tapotha, should be controlled from Nagichot. The proposed extension of administrative control over the Tapotha was adversely affected during the year, partly through the influence of Swahili poachers and partly from the death of one of the chiefs, who was shot in attempting to escape from custody. It is not anticipated, however, that this will have more than a temporary effect.

French Equatorial Africa.

22. The protocol (vide report for 1922) describing the proposed boundary between the Sudan and French Equatorial Africa from 19.30 parallel of north latitude to N'zili, a few miles south of parallel 11°, was signed at Bolai Abdulla on the 10th March. The respective commissioners were unable to agree on one important section of the boundary, which was left for final settlement in Europe. Negotiations with a view to settlement of the outstanding points were opened in London in November, and were satisfactorily completed by the beginning of 1924.

CHAPTER III.-PUBLIC SECURITY.

23. The operations of the patrol (referred to in last year's report) in the Tabi Hills, Fung Province, concluded early in January. Of the three ringleaders captured, two were tried and sentenced to death. Ferdim, the principal instigator, remained in hiding during the year but was captured early in 1924.

24. In February disputes between the Dinka of the Nuba Mountains Province and Jekaing Nuer of the Bahr-el-Ghazal Province over grazing rights in the region of Lake No necessitated the intervention of a a patrol. The District Commissioner endeavoured to settle the matter himself, but the Nuer refused to abide by his decision or to pay the normal tribute to Government. The patrol therefore proceeded to the scene and was attacked by the Nuer, who lost five men killed and four wounded. Fines were inflicted, the tribute paid and the Nuer confined to the Bahr-elGhazal side of the river, while a leading Dinka chief, whose conduct had been unsatisfactory, was brought into Talodi, the headquarters of the province.

25. In the Nuba Mountains Province troops were employed on three unimportant occasions. In May the natives of Katla Kurung refused to hand over some cattle thieves, in spite of repealed warnings to do so. Their hill was visited by a patrol which met with but slight opposition, and a fine of cattle was collected. In the same month the villages of Macoma, in the Eliri hills, fired on police who were endeavouring to effect an arrest, and compelled them to withdraw. A fine was inflicted, and refusal to pay necessitated a small patrol in June. In April the villagers of

Umbri Koalib refused to hand over a murderer, and were ordered

to pay a fine. A further order was given in October and disregarded; a patrol, therefore, proceeded to the hill in December. Stronger opposition than expected was met with, and the troops. suffered casualties of eight killed and twenty wounded. The hillmen, however, who had also suffered severely, surrendered and paid the fine.

26. In Darfur Province frequent reports of extensive camel thefts by the people of Jebel Meidob necessitated an extensive police raid in October. Seventy-eight stolen camels were recovered, and forty-nine unlicensed rifles confiscated. The police further succeeded in arresting the murderer of a Kabbashi Arab in 1922.

27. With the exception of the above incidents, which were entirely of local importance, the general peace of the country has been undisturbed.

CHAPTER IV.-FINANCE.

28. Financial conditions in the Sudan in 1923 have shown marked improvement as compared with the previous year, and, as is reported below, the position as regards public revenue and expenditure for the year is distinctly satisfactory. In general the rains were up to the average and evenly distributed, so that adequate stocks of grain for local consumption have been maintained. At the same time trade in those products which are exported to foreign markets, and which represent money and purchasing power to the population, has been with a few exceptions very good.

29. The trade figures are dealt with in other portions of this report, and need not be commented upon in detail here. The outstanding feature was the record export of gum, which at 22,425 tons, valued at £E. 1,006,623 (f.o.b. Port Sudan) compares with an average for the last ten years of about 14,000 tons and with previous high records as regards value of £E. 744,345 in 1917, and as regards quantity of 19,615 tons in 1912. Cotton exports showed a fair increase in 1923, and should show a very marked increase in 1924. The real increase in cotton exports, due to current developments in the Gezira, will not of course take effect before 1926. The cattle and sheep trade showed an improvement on 1922, but is still a cause for anxiety.

30. The general improvement in the position of the population is indicated by the promptness with which taxes have been paid, the arrears outstanding on the 31st December, 1923, being less than half what they were for the corresponding date in 1922.

Financial Results for 1923.

31. The actual financial results as regards Government revenue and expenditure for the year 1923 have been considerably more favourable than was anticipated when the budget was framed. The accounts for 1923 have not yet been finally closed, but present estimates indicate a surplus of £E. 373,360.

32. Detailed tables are attached comparing results for 1922 and 1923 (Appendix 1, p. 64). The following points call for special

comment :

Revenue.

(a.) The surplus realised over estimated receipts will be about £E. 351,000. This is mainly accounted for by record returns on gum royalty (£E. 100,000 excess over estimates), and also increased returns over estimated revenue for customs, railways and sugar.

(b.) The revenue under the last three headings has been to some extent influenced by the construction work now in progress on the Gezira scheme and on the Kassala Railway. On the former scheme the contractors (Messrs. S. Pearson and Son (Limited)) have now (March 1924) no less than 17,000 labourers at work. The great majority of these are Saidis brought up from Egypt. Considerable numbers are also being employed on the construction of the railway to Kassala and on irrigation work. The exact extent to which this work has increased normal net revenue is difficult to gauge, but it probably amounted to not less than £E. 100,000.

(c.) In any case, however, the increase shown in the gross receipts of the railways (1922, £E. 1,624,519; 1923, £E. 1,715,530; increase, £E. 91,011) must be regarded as encouraging, in view of the fact that very substantial reductions in all rates have been made during the year.

Expenditure.

(a.) Expenditure, owing to careful economies, shows a reduction as compared with 1922 of £E. 54,234, and of about £E. 22,000 as compared with the budget estimates for 1923. The most important measure of economy was in respect of the war bonus on salaries. This, during the year, was progressively reduced, and finally eliminated altogether. As partial compensation to officials the allowances for assisted passages and travelling facilities have been increased.

(b.) The economies on the budget estimates in actual expenditure for 1923 were in reality larger than is indicated by the above figures, because, against savings on current expenditure, it has been found possible to increase the provision for railway renewals, as explained below.

The annual financial position of the Government is dominated to a great extent by the results of the working of the Sudan railways. The financial results of the railways again are very greatly affected by the manner in which the annual provision for renewals is treated. The question of what amount ought to be set aside each year in order to provide annually the average amount necessary to maintain the railways in a sound position, and to avoid wide fluctuations in the provision for renewals from year to year, was very carefully considered by Sir Felix Pole (General Manager, Great Western Railway), who has just completed an investigation and