HD 979 .S3z 1904 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924070483734 3 1924 07"0"'483 734 REPORT OF COMMITTEE WITH llEFEKEXCE Ti) TilE SALE OF GOVERNMENT LANDS IN THE SUDAN. PrESENTKP to II. E. the (iiiVEIiXdll (ii;N'MltAL Sir REGINALD WIN(;ATE. K.(M^., K.C :\I.(I. JTJISTIE X904. (Printed by ordep of H. E. the Governor General.) To be obtained at tlie OHucs: — Khartoum. — Of the Diruct^iv of Lauds and Agriculture, Oi'n'o. — Tlie Agi'ut General, Sudan CUt^'erniiii'tit. TadkJoji. — Colonel Westeex, troadway Chambers, Westmiu-ter. PRICE P.T. 2i OR 6d. REPORT OF COMMITTEE WITH KEFEPvENCE TO THE SALK OF GOVKRNMKNT T.ANDS IN THE SUDAN. H. E. THE Governor General, Sir Reginald Wingate, K.C.B., K.C.MJi. Excellency, We fire instructed to advise on tlie ronditions on which proposals for land-grants may !);> favouraM)" entertained by the Sudan Government. . PRELIMINARY. Our task is materially simi)liti('il h\ the fact that at an Leigh Hunt early stage we had to advise on the specific a])])licati(in made contract. by Mr. Leigh Hunt, and that the negotiations with that gen- tleman have now resulted in the concdusion o£ a contract with him. In the course of these negotiations the general ])rin- ciples applicable came to be s(^ttled with a fair degree of defini- teness, so that little more nanains under this head t'.ian that we should place those princi]iles on record for purpose of futnre reference, noting the points which will require further working ont and thos(> in which the e(~inditions of the ])arti- ciilar case may recpiire to lie varied in other cases. \\e may premise that our ent|uiry is limited for the present Limitation to lauds of moderate depth bordering the Xile in districts ° ^""^ where there is no reliable rain-fall. Applications for land in districts where an elaborate irrigation system Avould lie required, or in the Southern Provinces where there is ;i regular rain-fall, would be governed 1 ly entirely different considera- tions, which it is no part of our j^u-pose to discuss. — 4 — CHAPTER T. Existing Native Rights. Since oni- sitting's commenced, our attention has been di- rected, l)y fnrther instructions, to the question oii existing native rights ovcj' some of the lands concerned, and it may Ije convenient if we first indicate our views in this matter. Scope of na- We understand that native rights extend to fulloccupj'ing ive Tig ts. Q^yj^gpgjjjp q£ land inmiediatel}- along the river bank, and of occasional plots further Ijack, which are watered from wells, togetlier Avith cultiAating rights over a much larger j)ortion of the land, in the occasional years in which, they are covered by high floods. We ought to remark that immediately behind the lands actually cultivated there frequently lie lands actually uncultivated and free from taxation, which were formerly cultivated l)y lift, but are now left unirrigated, o wing- to the absence of labour and possibly of any market for the produce, but which are undoubtedly claimed in full ownershij). We further understand that the question of cultivating rights over land occasionally flooded is now forming the subject of enquiry, but how far such enquiry is regarded as purely judicial in its character, and how far, on the other hand, the administrati\'e question of tlie nature of the rights to be recognised is regarded as an open one, we are not specificallv aware. Land under We understand it to be a cardinal principle that rights of ar ciiltivation. regular ownership combined with actual occupation are not lightly to ■a ■,■ f be disturbed. The comijulsorv i^owers of the Goverrmient Policy of non- i ■ i expropriation, would therefore only be put into force for the expropriation o£ such laud in the case of laud required for pumpiug stations, or for other necessary works (e.g. canals, drains and roads) or in the case of plots (especially isolated plots) of small relative extent, which from their position would be a serious obstacle to a sclieme covering a much larger area. In such cases the existing legislation has only pro\'idcd Ldiuiieusiition for pecuniary com[iensation. Compensation in the form of ,.ei'o'iiiiiiended land would, generally speaking, be in every ^vay preferable, and we advise that this form of compensation be ordinarily adopted. It could probahly be ai-ranged for l)v the local authorities, but, failing vol untary acce]itan(.'e of such compensa- tion, amending legislation would, in our opinion, ])e desirable. The substituted land should be handed over ready for cultiva- tion, or should be accompanied by am(nic}'grantas eomponsa- tion for disturbance. Where such lands are ac(iuired by voluiilary agreoment, v.iiuntary the terms of the a<>-reeiiient should ])c subieet to the approval '■M'i-"P>-iation of the (irovermncnt or of the local authorities. cu.iirniii^.i. The (piestion of land occasionally rtoiidcd raise-; the whole Land question of land tenure in the districts concerned, and we °^P .® °* i ' occasional trust that the matter will be \ery cart'.fully considered in all cultivation. its bearhigs before a final decision is taken. It is, on the one hand, somewhat startling at first sight, iiiipnrt^mcenf that riirhts inconsistent with the profitable emplovment of"*'.'""™ the land should be claimed over large tracts by a very limited number of persons. On the other hand, it is to b:' obserwd that such rights date from a time when the population was very much larger and that the nature of such rights — of which a primitive population is always tenacious — is not necessarily altered by the fact of the number of persons in which they are concentrated boing reduced. Nor dues it necessarily follow that rig'hts are o£ small value because their yield is irregular. A resemblance might possibly be found between the receipts from this source and the case of timber upon an English estate, the occasional ripening of which may be of distinct use in meeting expenses which can be postjjoned until a favourable moment arises, or which may sa^•e the owner in a time of temporary embarrassment. A substantial sum from such a source might, for instance, ])ro- vide the means of purchasing a sakia or cattle, which would be permanently impossible if the accumulated savings of ordinary cultivation were alone available. AVe incline, therefore to think that these rights may have a direct bearing upon the prosparity of the country and that they should not be lightly disregarded. Distinction At the same time, the hist(jr}' of Egyptian land tenure between sucii }^g^||g yg ^q suppose that the (.lovernment has never recognised rights and ' '- ^ absolute any absolute ownership in such lands (although we are aware owneis ip. ^j^^^ ^j^g ^'iew of the Egyptian (Government may have had no particular connection with local customary rights) and we should regard it as a mistake if the present Government were to give to such rights a new rigidity, at a time when they may stand in the way of the effective development of the countr)-. Wiiile, therefore, we are of opinion that the rights themselves should be recognised, we regard it as essential that a clear distinction should be drawn between such rio-hts and full ownershij). It is scarcel}' less important that the ]>ersons in whom the rights are vested should be accuratelv defined. A\'e regard it as a priori more probable that the\- are vested in the village or in the tribe than that they are vested in individuals by right of descent, and, if experience elsewhere is any guide, it is most probable that such rights are essentially incapable of alienation. From the recognition of such rights it in no way follows Such rights that they should be allowed to stand in the way of any irriga- subiectfor tion schemes which are otherwise desirable. It is, in our cunipenBation. opinion, sufficient that adequate compensation should be given for them. Such compensation, in Mr. Leigh Hunt's scheme, "^ is intended to take the form of grants in full ownership of basin (as opposed to perennially irrigated land) and we see no valid objection to the adoption of the same system elsewhere. It will be remarked that such compensation cinnot be granted at the time of the decision of the Land Commission, or until an irrigation system is actually installed. Tlie machin- ery of expropriation is therefore rather a ([uestioii to be worked out by the legal advisers of the Gcivcrnment than one for us to consider, in jwrticular, if the rights are communal rather than individual, precautions would require to Vje taken that the compensation found its way into the proper hands. Further, no definitive proportion could at this moment be fixed l)etween the area ( ner which the rights extend and the basin area to be granted in compensation. Any sucli proportion must depend upon the level of the land in each case and also upon the degree in which the area available is in correspondence with the needs of the poj)ulati()u. Our remarks under this head, if they are well founded, (JBuemi have a wider application than to the problem immediatelv J^j'|jJ|^^''^g°" before us. nbseivatione. Individual rights over clearly defined areas we should be inclined to assimilate to full ownership). On the other hand, we should, in the absence of strong evidence the other \'\ay, l^e inclined to regard all rights exercisable over land of variable extent or situation, especially when exercisable by the membarsof a community as such, as something distinct from, and incapable of ripening into, full o^Miership, and as prima — 8 — facie inalienable. If tbis distinction can be fairly drawn, the importance of its application to rain-faU lands in the Gezira (if any comprehejisive scheme of irrile" and not merely Ituid "irrigated.'" AW' are informed that such was the express intention of the then Governor General and, while we are not prepared to criticize the policy under which the powers to enforce culti\ation by taxation ha\"e remained dorm- ant, we are strongly of opinion that claims over an undefined '• hinterland " should not be permitted to become a means of * Note. — AVl' may a|)iioar to liave generalised on tlie question of lai\d tpnure in tlie body of oui' report witliout any (lartieular liasis of fact to build on. Sucli evidence as we lia\'e been able to eoUeet is oC tiMi va^^iie a oharaeter, and too ineoiniilcte, to put forward in a S3'strntatie form, but, besides some e^'idenee relating to tlie (Jezira, ]\Ir. Hayter has mentionned that tribal riglits in island lands near Kartouni have eonie before him for decision as a Judne, iiiiil Mr. Sai^ar has given us information as to clear tribal tiwnerslnp in occasionally flooded lands on tlie Atbara, where individual [ilots, when flooded, are re,^nlarly cultivated by the same member of the tribe. We anticipate tliat with tlu' commercial development of the cimntry such rights are destined to disappeiir, but we bdii've lliat much injustice may be avoided b\' reco""- nising them at the present stage ■ Our object is in no way to attempt to define the nature of such rights, but rather tn secure tint tlii> attention of tlie oflicers in a |iiisitioD to collect information should )ic drawn to a very important subject. black-m;iiling persons who are prepared to actually cultivate. We therefore recommend money compensation in such cases, assessed according to the value of the laud, apart from the destination for which it is purchased. At the same time, in districts where iiicreased facilities of Enforcement -, , , , of (iiivemmeiit communication ma}' gi\e an mcreascd value to land, "we ,.|„],tj. are of opinion that the limits of the laud in pri\ ate ownership should be determined as soon as possible, eitlier by tlic machin- ery of a Land Commission or by the cnfoivemeut of taxation. It would probably be found that any claim to abandoned wells away from the river was prcscribeil in fax'our of the Government. ^\c gather that speculative ]iurchascs are taking place, Public both of l)a<'k lands and of occasiouallv irrigated lands. I£ "oticeofGo- '^ vernment our suggestions as to taxation of the rights over one, and the policy. non-recoffuition of the alieiiabilitv of tlie riii-hts oxer the other, are adopted, such speculative purchases mav, indeed, 1)0 stopped, but difficulties may arise with the purcliascrs. We should therefore lie glad to see notices published, warning persons, •who mav propose to purchase land from natives claim- inersons exercising culti- vatino- rio'hts over occasiouallv irrisiTited land have a title thereto which, according to the local law, they arc com[ieteut to transfer to a purchasei'. CHAPTER II. Pioneer Stage of Land Development. It is clear that for the proper development of the Sudan, crops suitable for export nmst be grown and that some cheaper means of access to the sea must be provided than at present exists. — 10 — Policy in It results that anything which can be done prior to the raiiwa"^^^ opening of the new rjiilwa}- must be essentially preliminary. AViiat is required at the moment is to induce foreign capita- lists to take up land experimentally and to spend the money necessary for its development, with a view to shewing that crojjs suitable for export can be profitably grown. Once that fact is generally recognised, we see very substantial reasons for considering the development of the agricultural wealth of the country by land companies undesirable and, although the process would probabl}' be slow, we should prefer to see the further development of the country worked out by the surplus population of Eg}'pt, or b\' the growing- population of the country itself. We ought, perhaps, to observe that our objections do not apply to land brought under culti\ation by land companies with a view to speedy sale to peasant ])ro])rietors. For such operations there may always remain a large field. Principles From what we have said several results folloAV : — to be j_ ^j^g grants as to which we are primarily advising will land grants Very probably be limited in number, and should from the outset be regarded as somewhat artificial in character. II. Lands to be granted should be such as will be served, with a reasonable degree of convenience, by the new railway. III. The Government is entitled to thoroughly satisfy itself as to the financial position of applicants. IV. Conditions should be laid down \\'hich will ])reventthe taking up of land for speculative purposes, and will ensure the business-like development of the land taken up. V. Subject to these conditions being satisfied the Government neid not concern itself with the price to be obtained for the land iirantetl. — 11 — The larger part oE the price will b^ represented by the irrigation Avurks to be constructed, and the profit of the Government will arise from the increased yield of its land feix and the increased demand created for other lands. It is useless to insist on obtaining the full market price of the land at a time '\\'heu for land in large blocks there is no effecti\'e market. While the above are the principal considerations to be kept in view we are nf opinion that, even as to lands ^vhich. in a sense, are taken up experimentally, the (iovcrnment may reasonably insist, and ought t(j insist, on the opc^rations of the concessionnaires being such as shall be of service to the (-iovernment in the event of the enterprise being abandoned, and shall fit in with the develo[)ment of the surrounding countr}', when the time comes for it to be dexeloped. From the first consideration result some obserA'ations made later as to irrigatidu works ; from the second it results that, unless there are serious reasons to the contrary, any scheme should include the whole area available between the river (excepting land already in cultivation by lift) and the ed^ic of the cultivable land. CHAPTER III. Qualities to be required in Applicants. From what we have already said, and from the fact that Financial, it is proposed that the principal irrigation works should be carried out by the grantees, it results that the ( iovernment must be satisfied of the financial solidity and the business- like qualities of applicants. In \iew of the fact that one of the principal expenses will l_)c that of constructing the main canal, and that the length 12 Egyptian exporieuco. Individual capitalists. Syndicate Land companies. Sjieualatiw holdings. of the canal is dependent entirely upon the levels, we cannot give any indication of the amount of capital to be required, but the Government would be justified in requiring — and ought to require — the fullest possible information as to the capital availal^le and, where the capital is not that of the applicant, the source from which it is to be obtained. As labour will probably have to be brought from Egypt, it is desirable that applicants should have some Egyptian experience, or should command the services of persons with si;ch experience. The best type of ap])licant is, no doubt, the large capitalist who is prepared to undertake the work with his own capital for the sake of the direct profit resulting from it. As, however, such capitalists with the necessary experience are likely to be rare, we sec no objection to grants to Syndi- cates, nor, where the Syndicate is not appealing to the public, do we see any objection to the incorporation of a Syndicate under English or Egyi)tian law. Land companies appealing to the public for their capital we should propose to scrutinize with the utmost care, especially where such companies were themselves 25romoted by parent companies in the hope of obtaining a profit on promotion. Companies promoted by men of practical experience, with a view to the investment of their own capital, and to obtaining salaried employment for themselves, where the appeal to the public was b.ised on the confidence inspired by the promoters, we should regard more favour- ably. Applicants Avhose intention was merely to hold the land in the hope of a land-boom would be entirely undesirable, but they would be ruled out by the conditions upon which we propose that grants should be made. — 11! ~ CHAPTEll TV. Land available and Area of Grants. The Eiryptian Public Works Department has laid it down Summer that, for the present, summer water cannot be allowed to the Sudan for a greater area than 10,000 feddans, corresponding- to an area of 25,000 to 30,000 feddans under perennial irriga- tion. Of this area 10,000 feddans has already been promised to Mr. Lei"'h Hunt, and se\'eral smaller urants have been made, so that one, or at most two, further gi'ants only of substantial area for perennial irrigation will bo [)()ssib!c, until the aniount of water available is increased. Other grants must therefore be for basin cultivation alone. Catalogue early winter pumping being alhjwcd if fomid useful. Of ^^aiiaijie, such land there is probabl}' a larger area available than is likely to be applied for by suitable persons in tlu' immediate future. That being the case, it might be convenient if the local authorities — with the assistance of an irrigation officer— cam(; to some kind of decision as to the lands for which applications would be entertained. As principles to be kept in view in selecting land, we Principles would c'specially mention that the lariprovcd liy the riovernnient. Upon the plans being approved, tlu' a])[)lic;int would be entitled to call for a grant. He would then be required to com])lete the main irrigation Construo- canal or canals and maui drainage works bi'Fore a date to lie ^^^^ prescribed. The various dates to be prescribed should be fixed with Dates. reference to the working seasons : as, for instance, the a])proval of the ])lans would rerpiirc a eertain time, it would be wasteful of time to fix the date for sulimission of plans so near the commencement of a Axorking sea-on that a portion of the season would probably he lost. The date for completion of the. main canal should be fixed from the outset, in order tliat operations may not be wilfully postponed for an indefinite time b}' the submission of improper plans. Once the main canal and drainage works are constructed, self-interest will probably lead to the remaining works being carried through without undue delay. W'e ha\'e i)rovided for the submission of plans to the CoutroUing Sudan Government as being the authority responsible for authority. local administration, but we have no wish to imply that the — IG Government should not (cspfcuilly at i)resent, when it has no competent staff o£ its own) avail itself of the services of the technk'id advisers of the Egyptian Government, in approving the plans or re([uiring alterations in them. Deposit. A deposit is provided for upon the initial agreement being entered into, which is forfeited to the Government if the grant is not duly taken up. This deposit guarantees the Government against loss in the form of expenses incurred hy it in supervision, etc., in the event of the agreement going off, and further serves as a guarantee that the applicants, wlio prevent the land being otherwise dealt with for a considerable period, sariously intend proceeding with the matter. In the event of the grant being taken up, we have not provided for the Government being recouped any exjiense it may have been put to out of the deposit, as such a procedure would lead to a certain complication of accounts and the Government will be ultimately recouped by the purchase price. In the Leigh Hunt agreement, tlie deposit is exjiressed to h'j returned u]ion the taking up of the grant, a course which, in view of the expense already incurred by that gentleman, appears perfectly safe. It would be preferable in other cases to release it only when it is shown that a corresponding sum has been expended on irrigation Avorks. Supervision. In addition to requiring the preliminary plans to be a})proved by the GoA'ernment, we provided that all irrigation and drainage works slionld be required to be submitted, in such detail as might from time to time be indicated, and to be approved in advance. Maintenance, -^^1 irrigation, drainage and reclamation works should be constructed or carried out and thereafter maintained at the expense of the concessionnaire. In view, however, of the iiiconvcnienco incident to having Taking civer the water supply of one property under the control of the owner of another ])roperty (inconvenience which may shew itself either in dispute as to the cost of upkeep of works or in the deliberate sacrificing of the interests of his neighbour by the owner who has conti-ol of the water sup])ly) we pro- pose that so soon as canals or drains come to serve the land of two or more owners they may be then declared of "public utility," and should thereupon vest in the Government without payment and thereafter be kept up at Government expense. We have ])r(ivided that the cost of such upkeep may be iiaint.MmnrM. recovered, as additional laml-tax, from the owners <^f the j_,^j^^ ^'^ J^' ,|. land ser\ed, but we are by no means clear that it would in practice be desirable to proceed in that manner. The above are our in'oiiosals for dealing with irrigation Alternative ' . . , . policies as works in pioneer eoncessions, but we are i'ar Irdin being toconstruc- satisfied that, if theGovermm-nt were financially in a itnsition ^'°" °^ ' "... works -Go- to carry them out itself, the entrusthig of them to individual vernmeiit owners would be Justifiable. °^ onces- ■* sionnaire. In the first place, it results in ]K)ssible applicants being limited to persons having couuiiand of considerable ca])ital. The applicant, or agroup of :ipplicants, must be in a jwisiiion to take up an area sufficientlv large to constitute a commer- cially profitable basin. But, if the scheme could be carried out by the Government, there would probably be large numbers of small capitalists in Egypt with agricultural ex])erience who would be able to take up smaller areas in the basin at prices at least as remunerative to the Government as that actually to be paid b\- the single concessionnaire. If the fact that the irrigation works are to be constructed by the concessionnaires has any effect <;)n the net price paid — 18 — (i.e. the price paid hy the concessionnaire, or the jwice paid by purchasers, less the cost o£ constructing works) we anti- cipate that its effect will be to reduce the price, since the construction of irrigation works is a business entirely distinct from that of agriculture, and the agi'iculturalist, who is anxious to purchase land, and finds that, in order to do so, it is necessary to embark on a. subsidiary business with wdiich he is not familiar, and which involves a not easih' calculated risk, makes sufficient allowance for that fact in the price offered to ensure his coming out (in any case) on the safe side. In the same sense, a Government irrigation department is in a position to command the services of a body of expe- rienced contractors with whom it is in close touch, whereas the concessionnaire lias to find out for himself surveyors, contractors, etc., with none of whom he may hitherto ha\e been in relation. Tiiere is at least a risk that he may consider it the simplest solution, as regards surveyors and surveyors of contracts, to buy up Government servants at prices, which, in the end, the Government jxtys, through the diminution of the jiricc it obtains for its land. Finally, when a conti'actor has l)oi',n (ibtaiued, he is en"-a<>X'd for :i single piece of work only, and he has no inducement to make a,ny of those small concessions which ease off the difficulties which jiretty general]}' arise in carrying out a conti'act. That a ( io\ei'nment contractor, who has always in mind the chance of obtaining further contracts, is reasonablv accommodating, is shewn b\' the infrequencv of law-suits between the Egyptian Goxernmeut and its regular con- tractors. For the above reasons, we anticipate thiit, so s(t(jn as the Sudan ?, — For a reason already mentioned, we attach no particnlar importance to the pro\isions as to rates of tax in this [)ar- ticular case. The purchaser is a pioneer, and, if he jjroves to have made a good bargain, nothing could be more conduciAc to the development of the neighbourhood. The essential point is that, before there is any large extension of land grants — and more especially of grants for perennial irrigation — tlic Government should have a general policy as to taxation. Down to the present time, rates of taxation haAc necessaril}' Temporary been provisional in their character and have depended \ery largely upon the amount which the Government lias been prepai'ci.l to si)cnd, directl}', in the purchase of a portion (if the provincial crop. In other words, such a sluu as the Government has spent, either directly or through its em- ployes, on food stuffs, locally produced, or on labour, it has been able, subject to the necessary adjustments, to reco\'er in the form of taxation, and, until produce can \)v. profitably exported, it is hopeless to get away from this A-ieimis circle. Any attempt to materially increase the yield of taxation by increashig the area under cultivation, can, for the moment, only result in a glut of unsaleable produce, accompanied by a fall in prices, which would render [)aymcnt of land-tax at present rates an impossibilit}'. It is to be hoped that the opening of the new railway ma\- importance iirovide a market for produce which Avill lead to prices beino- °* rational ^ ^ 1 o basis tor fixed to some extent independently of pure!}' local condi- taxation. tions. Sliould this ha])p3n, a permanent basis for taxation Avill for the first time be provided. So far as regards the indigenous population, the necessary adjustment of i-ates, which Avill probabl}- be well marked, could be carried out empirically at the discretion of the local officers. But, i£ foreign capital is flowing at all freely into the country, any large modifications in rates of taxation, of which due notice had not been given, Avould probably give rise to protest and to a feeling of insecurity. It is for these reasons that we feel justified in insisting on the importance of finding, as soon as possible, and making publicly known, a rational basis for taxation. Egyptian The precedents supplied by Egypt are perhaps more precedents. instructive negatively than positively. Down to (approxi- mately) 18cS0 tax rates in Eg}'pt ^^'ould appear to have been substantially arbitrary. From ] SSO, down to the re-adjustment now in progress, these arbitrary rates have been in principle maintained and have provided many striking irregularities. The purpose of the re-adjustment has been to secure rates bearing, as closely as possible, a fixed proportion (approxi- mately one-third) to rental value. But, in the first place, an arbitrary maximum Avas fixed to the rate per feddan ; again the rental value per village was estimated some few years previous to the re-adjustment, and not only has there been a general rise in rental Aalue, but marked local variations have alread}' begun to appear. Especially is this the case where public works ha^e been carried out (wliether of irrigation or drainage), and no machinery exists for re- adjusting taxation l)y reference to the effect of such works. We have not, of course, overlooked the Decree of 1902 as to a surtax on land recei\'ing perennial irrigation, but ^^ e understand that the effect of the Decree is far from being in proportion to the benefits received. Finally, it has not been clearly laid d(5wn to what extent rates are subject to future re-adjustment, although the re-adjustment Decree contains the negative provision that no further re-adjustment shall take jilace during a named period. The importance of the matter (apart from the interests Effect of of the riovernmeiit revenue) lies in the fact that the market '"''■'*"'" value of land is directly and materially affected In- any change in rates of taxation. It is therefore eminently desirable that proprietors should have notice of the policy which it is intended to adopt. The re-adjustment in E^ypt jjrobably represents the maximum that could be then ac- complished, in view of the fact that historically no principle of systematic re-adjustment appears to have existed. ^Ve desire that no such incouNcnient procedure should be allowed lo grow up in the Sudan. The policy that we should recommend is tiiat as soon asRecom- ]x.)ssib]e (but not so soon as to involve the fixing of more or less permanent rates before the new conditions produced by the railwiiy, etc., have had time to shew themselves) the Government should embody in a Land-Law the })ro])ortion of the rental value it claims in the form of tax, and should provide for the periodical re\ision of rates on this basis. Li localities where rental \alucs could not be said to exist, it might be necessary, for a time;, to fix tax rates by reference to the normal gross produce of the land. Once rates were fixed, there would be ob\ioas economic objections to too frequent revision. At the same time, in parts of the country where the f.rst assessment was admittedl}- provisi(.)nal, an earlier revision might be both justifiable and necessary. The law should further provide for re-adjustment, when the conditions are substantially changed by the construction of irrigation or other public works. There are of course means b}' which this policv might be brought to the knowledge of the world at large before it was actually embodied in k'uislation. — 26 — CHAPTER VII, Form of Grant. In deciding upon the form of grant to be adopted the object to be kept in view is to secure that the area included Control secured by Ijostponement, of grant o£ in the graut should be reclaimed with all reasonable speed. full ownership. rr^i . , . . , n i i i i ihis object might no doubt be secured more or less effectively b\' simple contract, even if the land Avere imme- diately granted in full ownership. Breach of contract, however, results naturally in a simple action in damages, which would leave the land in the ownership of the de- faulting concessionnaire. It is, further, far from clear to what extent conditions of any kind can be attached to land in full ownership under Sudan Law, without legislation. For these reasons we prefer to adopt a system under ^vhich full ownership will not be acquired until the concessionnaire has substantially carried out his obligations as to reclama- tion. The system adopted in Mr. Leigh Hunt's case, which we propose for general adoption, is based upon recent practice in Egypt (^vhere, Ave may remark, it is not technically impossible to introduce a condition providing for the rescis- sion of a sale in certain events, though in practice such a condition proves difficult to enforce). Preliminary The first stcp is a preliminary agreement under Avhich, iigreement. ypQjj payment of a deposit, the intending concessionnaire enters upon the land for the purpose of carrying out survey and preparing plans. Surveys and Sucli survcy luust be Completed and plans submitted ''"''■ Avithin a fixed time. — 27 — The plans being submitted Avithin the fixi^-d time and RisW tu u-is beinj^- tliereafter approved, the concessionnidrc is then entitled to take up a lease of the area. Upon Mr. Leigh Hunt taking up his lease, he becomes Deposit, entitled to the return of his deposit: should he fail to do so (or, ronsequently, should he fail to submit his ])lans within the time fixed, so losing his right to take up his lease) the deposit is forfeited. We have already suggeste ])urchase is lost if the work is not carried on in a busine-s-like manner, but the condition is drawn in terms which are far from stringent, as it is impossible, until the plans are prepared, to decide what is the maximum of speed which may be fairly insisted on in pushing on the Avork. The question of rent has already been dealt with. R'^nt. Finally, every lease involves a number of subsidiary Formal clauses for giving effect to its main provisions, the drafting of which may give rise to disagrcments jjetween the partie-. if notice is not given, in ad\ance, of the lines t(i be followed. Li this connection we ma}', perhajjs, useful])' (piote para^. 29 and 30 of the Leigh Hunt contract, which are as follows: — (2!)) " The lease would contain a jiower of re-entry (ni breach of the covenants of the lea-ndicate of responsible capitahsts, in Hunt's 11 111 CI 11 1 application which he would be a prnieipal shareholder, bhoul-l such to form permission be granted and should the present venture prove Syndicate. — SC) — profitable, the same gentlemen are prepared to form a much, larger company with a view to extending their operations. The names of the gentlemen participating in the syndicate lead us to hope that, so far as is possible at the present very early stages, our suggestions have been of a nature to inspire confidence amongst business men. The arrangements for forming the larger company suggest that the success of the one syndicate now proposed may serve all the purposes of what, in an earlier part of our report, we have described as "the pioneer stage." So soon as, if ever, the gentlemen concerned are prepared to form the larger company, the development of the Sudan will have entered upon a new phase. The question on which we have already touched, of the extent to which the Government can entrust to others the construction of large irrigation works, will call for definite decision. The present rudi- mentary legislation in commercial matters may require to be replaced by more formal codes. The whole machinery of Government — well suited, as it is, to the needs of the indi- genous population, and amply as it protects the few pioneers of civil' zation who have entered the country — will be sub- jected to more exacting tests. Such speculations are a somewhat large superstructure to erect on the basis of the single fact that a few capitalists have arranged in certain events to take determinate shares in a possible company, and, in any case, the}' are for the most part outside our present province. We only allude to them to add force to our view that the problems on which we have touched — questions of irrigation, the forms of land tenure, and the basis of land taxation — may at no distant date become urgent. — 37 — We nppend, for convenience of reference, a copy of the letter containing the terms of the Leigh Hunt Concession. Signed : A. L. Webb, Inspector General of Irrigatiorij Upper Egypt. Signed : W. E. Brunyate, Khedivial Counsellor. Signed: E. H. Cecil, Agent General, Sudan Government. Cairo, 1st June, 1904. AGENCY GENERAL, SUDAN GOVERNMENT, CAIRO, 1. 4. t)i. Leigh Huxt, Esq. Sir, 1. With reference to your application to take up land in the Berber neiohbourhood, I have submitted to H. E. the (isition to indicate to you the terms on which the Sudan Government is definitely prepared to accede to your application. Total Area. 2. The area to be taken up liy }ou would be the entire area to the west of the river, bounded on the north l)y Um Tiur Saliba, on the south by the AVadi el ^^"adei opposite Alutmir liiiilwav station, on the east )iy the cultivated land in private ownership lyinu' aloner feddan would be pa}-al»le. — u — 28. Blocks of land le£t uncultivated by reason of level but surrounded by land which was, or had been, cultivated would be assessed to rent under paras. 23-26 if of less than 10 feddans in area. General Conditions. 29. The lease would contain a power of re-entry on breach of the covenants of the lease, limited in the manner customary in the most recent concessions of the Egyptian Govei'nment; a clause conferring on Government representatives the fullest power of inspection; a clause empowering the Government to require the lessee to devote an area not exceeding 10 feddans in any year to experimental cultures, and all such formal clauses and conditions as the legal advisers to the Government might deem necessary or proper. 30. All mineral rights would be expressly excepted both from the lease and from the subsequent grants in full ownership. But such exception would not prevent the taking of stone, lime, sand, etc., by the lessee for purposes connected with the lease. Powers of Resumption, 31. Power would be reserved to the Government to declare the main canal (as also any minor canals or drains of suffi- cient importance) public canals (or drains) so soon as, by reason of the sale of purchased lands to sub-purchasers or otherwise, they come to serve the land of two or more owners, and such canals (or drains) would thereupon vest m the Government without any payment. 32. The Govei'nment would become responsible for the upkeep of such canals (or drains) upon their so taking them over. — 45 — 33. Power would be reserved to increase the land tax upon land served by public canals (or drains) by an amount representing the cost of their upkeep so thrown upon the Grovernment. 3Jr. So long as land remains vested in you or in your representatives otherwise than by purchase (whether upon lease or in full ownership) the Government would retain power to resume areas for public purposes (e.g. the widening of the main canal or the construction of canals or drains for the service of neighbouring lands) at a price (in default of agreement) not exceeding P.T. 200 per feddan, if the land were stiU held on lease, or P.T. 240, if it had been purchased. In the lands of your sub-purchasers they could only be expropriated under the laws as to expropriation for the time being in force. Saving of power to Legislate. 35. Nothing in the lease or in the subsequent deeds of sale would exempt you from the application of subsequent legislation as to irrigation or otlier matters, except that during the continuance of the lease, and for 30 years from date of purchase, you and your sub-pm-chasers would be exempt from the application of any legislation fixing higher rates of land tax for perennial]}' irrigated lands than for first class land irrigated by means of sakias. Alternative Scheme. 36. Should you see your way to taking up the area of 10,000 feddans for perennial irrigation in a continuous block, it would be open to you to present a separate plan and scheme for such limited area not later that the 1st April 1905, and upon the scheme being approved you would be — 4G — entitled to take up a separate lease for such area upon the terms above set out, so far as the same are applicable to perennially irrigated land, save that the main irrigation canal or canals and the main drainage works for such restricted area would require to be completed in time for the Nile flood of the year 1907. 87. Upon your taking up such lease for a limited area, one half of your deposit A\ould be returned to you, and it would then be open to you to proceed in respect of the rest of the land to present a plan and scheme not later than the 1st April, 1906, and upon the approval of such scheme to take up a lease for the remainder of the land upon the terms above set out, so far as the same are applicable to basin lands. The balance of your deposit would be returned to you upon your taking up such further lease, or, in the event of your not taking up the samj, would lapse to the Government. Pumping Rights. 38. The right of irrigating perennially irrigated land by means of pumps during the summer would extend to the placing on the land of suflicient water to irrigate 4,000 feddans, this being the proportion of an area of 10,000 feildiuis which experience shows can be put under summer croj) in any one year consistently with a sound sj'stem of rotation of cr(j]js. 39. There would be no objection to your having the further riglit to lift water by msaus of pumps for a larger area during the winter, after the free flow of water in the canal had ceased, but any such right would be subject to the absolute discretion ol' the (jo\'enmient to order cessation of working at a date to be fixed annuallv with re<'ard to "O — 47 — the general interests of irrig-atiou either in the Sudan or in 40. E\'ery pump (whether for summer or for winter use) would require to be furnished with a special permit and the question of pumping would be dealt with outside the lease. Tlie policy of the Government as to pumps is not yet defi- nitely settled, and it is probable that legislation on the subject will shortly be required. All pumping permits granted to }'ou would be subjected to the provisions of such legislation. It will therefore lie inore convenient that the exact terms of the permit shall not be fixed at the present moment. 41. Immediate information could be given to you as to the size, etc., of pumps which would be authorised, and the permit would be issued as soon as the pumps were required. 42. The provisions contained in the following paragraplis would in an}- case be applicable. 4;). The permit (or permits) for summer pumps would be for a term of twent}' years. 44. You would be required to provide water in the proper proportion to vour sub-tennnts and ultimately to your sub- purchasers. 45. A limit would he fixed to the prices to l)e charged. 46. All permits would be inalienable and would contain a forfeiture clause. 47. The permit (or permits) for summer pumps would reserve a power of resumption by tlie Government after 10 vcnrs, (ir after 5,000 feddans, at least, of perennially irrigated land has Ijeeu alienated by you, at a fair calculation of the value of the pumps and of the unexpired term of the permit. 4S. I'pon the expiration of tlie term for which the sum- mer pumping I'crmit was granted, or upon the earlier re>ump- — -18 — tion of the pumping system, the Government will be entitled to charge for the supply of summer water, rates, in the form of an additional land tax, equal to the maximum rates for summer water allowed under the pumping permit. 49. Legislation might provide for the summary recovery of penalties for wilful failure to carry out the terms of the contract for the supply of water by means of pumps. Expropriation of Native Rights. 50. As you are aware, cultivating rights in years of exceptional flood are claimed over portions of the land covered by your application, and such claims are now being adjudicated upon by a Commission. The land w^ould be delivered to you free from such rights ; but in the event of your taking up the entire area (whether under one lease or under two) you would be required to place at the disposal of the Government an area of basin land not exceeding 3,000 feddans, sufficient to compensate the owners of such rights. Such area should be indicated upon your plan, and should be distributed with proper regard to other land held by the owners o£ such rights. You would, of course, be liable to no payment of purchase money in respect of such land. 51. In the event of your taking up perennially irrigated land only, your system of canalisation and other works should be so arranged as not to interfere with the flooding by the river of lands to the south, and to convey to lands to the north during high flood at least as much water as would reach them under the conditions hitherto existing. 52. Should the inclusion of any land in private ow^nership in your operations be necessary, or should your operations be such as to materially prejudice any land in private — 49 — ownership, such lands must be bought hy you, and the Go- vernmeut would not be prepared to put into operation its compulsory powers for the purpose, except in respect of land required for pumping stations, or for right of A\'ay for main irrigation canal or canals under para. 12, or for the construction of necessary roads. 53. Any arrangement arrived at by you by means of private negotiation should be subject to the approval of the Government. Negro Settlers. 54. Any permission given to you to introduce Xegro settlers will be essentially revocable. General. 55. The present letter replaces all previous correspondence on the matter. I shall be obliged b}' being informed at your convenience of your decision in the matter. {Sintract 14 "Works at charge of concessionnairb 14 SURVEV 15 Plans 15 Construction of works 15 Dates 15 Controlling authority 15 Deposit 16 Supervision IG Maintenance l(i Taking over of works 17 Maintenance of works taken over 17 Alternative policies as to consi'ruction of wopvKS — G-o- vernment or concessionnaire 17 Pumps 11' Separate pumping permits 19 Policy as to pumps 19 — 53 — CHAPTER VI. Taxation. Leigh Hunt f'dXTRACT Tf.mpokaky remission of tax Gkneral policy as to land tax Biisin lands I'crciiniaJIy irrigated lands Temi'oeaey conditions ImPOKTANCK of rational 13ASIS FOR TAXATION Egyptian precedents Effect of taxation on values Recommioxdations I'AGE. 20 20 22 22 22 2?, 23 24 CHAPTER VII. Form of Grant. ( 'ontrol secured by postponement of grant of full ownership Preliminary agreement Surveys and plans Right to lease Deposit Currency of lease Exjiiration of lease Term for completion of works Restrictions on assignments Cultivating tenancies ()ption to purchase Went Formal clauses Pi>\vers to legislat( — limitations (!HAPTER YIII. Miscellaneous. Need for LKiitsi.ATioN Power of Resumption Temporary provisions 2G 2t; 2(1 27 27 27 27 27 2S 2S 28 211 21) 30 30 31 31 — 54 Objections to permanent provisions Arguments in favour of such provisions Provisions of expropriation ordinance Contribution to cost of public works . . . Importation of labourers and material Negro Settlers Foreign labour Egyptian labour ^ Question of allotments to labourers Penal clause Transport facilities for material „ „ „ labour Policy of Encouraging Sub-division of Land Questions raised by Mr. Leigh Hunt's application form syndicate Letter to Mr. Leigh Hunt TO PAGE. 32 32 32 33 33 33 33 34 34 34 34 34 35 35 39 ^^'