§ 67. Mr. BENNETTasked the Under-Secretary of State for the Colonies if he has received from the President of the Indian Congress Committee at Nairobi a protest on behalf of Indian traders against the recent Orders regarding the currency in East Africa, the immediate effect of which is said to have been to raise the exchange rate from the 9th February from 2 to 18 per cent., and later to 25, the protest alleging that the change in currency conditions spelt ruin for Indian trade with East Africa; if he has received a telegram from the Indian trading communities of Ujoro, Cambwa, and Nakuru, urging the withdrawal of the recent currency Order; and what steps he proposes to take in the matter?
§ Lieut.-Colonel AMERYYes, Sir; I have received the protest referred to. The fixing of the East African rupee on a sterling basis, eventually at 2s., undoubtedly inflicts some hardship on the local Indian community, in so far as they purchase goods from India or owe money there, though they will gain correspondingly in so far as they draw new capital from India or are producers or traders for export. To have allowed the East African rupee to follow the Indian rupee to its present price, would, however, have involved a far greater measure of hardship on all producers in East Africa, including the ex-service settlers. I do not think the Indian community have any reason to complain that their interests have been disregarded in the compromise which has been decided on.
§ Mr. ORMSBY-GORECould not the hon. and gallant Gentleman now change the currency in East Africa from rupees to sterling, and then this problem would not arise?
§ Lieut.-Colonel AMERYWe are, as a matter of fact, putting the currency in East Africa on a sterling basis, with a silver coin at one-tenth of a pound 439 sterling. Whether that silver coin is still called a rupee or not, it is not the Indian rupee. It is a sterling coin equivalent to the English florin.
§ Mr. ORMSBY-GOREWould it not be simpler to call it a two-shilling piece by the adoption of the British currency, and would not that get rid of this sense of grievance, which is undoubtedly genuine?
§ Mr. A. M. SAMUELWould it not be better to have an Imperial sterling currency note on the basis of a gold reserve in the Colonies, so that we do not have these different currencies dotted all over the British Empire?
§ Lieut.-Colonel AMERYThere is a great deal to be said for that suggestion.
§ Colonel WEDGWOODWas the India Office consulted before the Regulation was passed, and did it accept the Regulation?
§ Lieut.-Colonel AMERYNo, I do not think it was.
§ Colonel WEDGWOODWhy was it not consulted, seeing that it affected Indians primarily?