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THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA Report of a Mission organized by the INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT at the request of the Government of British Guiana

Recent events in British Guiana have turned the spotlight of public incerest on chat previously little-known country. This complere report, prepared by the General Economic Survey Mission which wenc to British Guiana in the Spring of 1953, presents a thorough analysis of the economy of the country, an economy in the process of transition.

The report contains the most complete and up-to-date description available of economic conditions in British Guiana. It shows how a sharp fall in the death rate, brought about by the almost magical elimination of malaria by DDT, calls for accelerated investment to provide for a population growing rapidly for the first time; and it offers a five-year development program designed to improve the standard of living.

The mission found a country where the bulk of the people are confined to a narrow ribbon of coast, preserved with great difficulty and expense from the encroachments of the sea by a system of dikes and canals. The densely forested interior, much of it inaccessible except by air, is mainly uninhabited. It is undeveloped except for some exploitation of unrivalled hardwoods and for the mining of bauxite, of which British Guiana is the world's second largest producer.

(continuetl a,, batck flap) Property International Iiice Corporation LI\ A RY /953

The Economic Development of

British Guiana

C-

Property of the international Finance Corporation L I B R A R Y The Economic Development of BRITISH GUIANA

Report of a Mission organized by the

INTERNATIONAL BANK FOR RECONSTRUCTION

AND DEVELOPMENT

at the request of the Government of British Guiana

Published for the International Bank for Reconstruction and Development by The Johns Hopkins Press - 1953 Copyright 1953, The Johns Hopkins Press. Distributed in Great Britain, India, and Pakistan by Geoffrey Cumberlege: Oxford University Press, London, Bombay, and Karachi.

PRINTED IN THE U.S.A. BY REESE PRESS, BALTIMORE. Library of Congress Catalog Card Number: 53-13267 The Mission

E. HARRISON CLARK Chief of Mission

KENNETH A. BoHR ------EcoIomist

CYRIL H. DAVIES - . Assistant to the Chief of Mission

W. F. EIJSVOOGEL - - - Adviser on Drainage and Irrigation

MAURICE GUILLAUME - - - Adviser on Agricultural Production

E. ROGER HONDELINK - Adviser on Transport and Communications

JOHANNES H. L. JOOSTEN - - - Agricultural Econiomist

EUGENE C. REICHARD - - - - - Adviser on Forestry

BARBARA MCLANE Secretary and Administrative Assistant

Preface

This is the report of the General Economic Survey Mission to British Guiana, organized by the International Bank for Reconstruc- tion and Development at the request of the Government of British Guiana. Under the terms of reference agreed upon between the government and the Bank, the mission's objectives were to survey the economy as a whole and to make recommendations on the level and directions of future investment, taking into account the internal and external financial resources which are or could be made available. The agricultural and forestry members of the mission were nominated by the Food and Agriculture Organization of the United Na- tions, which undertook to pay part of their salaries and expenses; two members (the experts on transport and communications, and drainage and irrigation) were recruited by the Bank from outside its staff; the remaining three are members of the Bank's regular staff. The mission arrived in British Guiana on February 1, 1953, and all members, except the forestry expert who stayed a brief additional period, left the country on March 16, 1953. The members of the mission travelled extensively throughout the colony. The government placed every facility at the disposal of the mission and both government officials and private citizens gave their full cooperation. The mission wishes to acknowledge this help most warmly. Mr. W. P. D'Andrade, of the Development Commissioner's Office, acted as liaison officer. In addition to his invaluable services while the mission was in the country, he had undertaken, before the mission's arrival, an extensive economic and statistical investigation which greatly facilitated its task. This report contains the framework of a five-year program, within which it is hoped that the government may be able to fit its specific investments from year to year. The report consists of two parts: Part I, the main report, which presents the structure of the proposed five-year development program as well as a summary of the principal recommendations of the mission, and Part II, containing the Tech- vii PREFACE nical Reports: A. Agriculture (including Fisheries); B. Transport and Communications; C. Forestry; and D. Industry, Mining and Power. The President of the Bank transmitted the report to the government of British Guiana in August 1953. In his letter of transmittal he pointed out that since the Executive Directors and Management had not reviewed the mission's recommendations in detail, they were transmitted as the views of the mission rather than as positive recommendations of the Bank. He added, however, that the Bank believed that the findings and recommendations of the report concerning the economic problems of British Guiana deserved the fullest public consideration and discussion.

viii Table of Contents

page THE MISSION ...... v

PREFACE ...... vii

The Main Report

CHAPTER 1 THE ECONOMIC PROBLEM AND ITS SETTING ... 3 I. Geography. 3 II. Productive Resources. 6 III. The People. 9 IV. The Degree of Development .12 V. The Problem of Development .13

2 THE POSTWAR DEVELOPMENT PROGRAM ...... 16

3 THE RECOMMENDED FIVE-YEAR DEVELOPMENT PROGRAM, 1954-58 ...... 23 I. The General Aim .23 II. The Five-Year Program .25 III. Institutions to Carry Out the Program .29 IV. Development Budget .39 V. The Interior .40

4 FINANCING THE DEVELOPMENT PROGRAM...... 41

5 THE AGRICULTURAL SECTOR ...... 49 I. The Problem ...... 49 IT. The Recommended Program ...... 51 III. Principal Recommendations ...... 52

ix TABLE OF CONTENTS

CHAPTER page 6 THE TRANSPORT AND COMMUNICATIONS SECTOR ...... 56 I. The Problem ...... 56 II. The Recommended Program ...... 57 III. The Railway ...... 58 IV. Steamers and Ferries ...... 59 V. Ports ...... 59 VI. Roads ...... 60 VII. Air Transport .61 VIII. Communications .62 7 THE FORESTRY SECTOR .63 I. The Problem .63 II. The Recommended Program .64 8 INDUSTRY, MINING AND POER ... 67 I. Industry .67 II. Mining .69 III. Power .71 9 THE SOCIAL SECTOR . .73 I. Education .73 II. Health .76 III. Housing .77 10 GOVERNMENT AND PUBLIC ADMINISTRATION .. 80 I. The Former Constitution ...... 80 II. The New Constitution ...... 81 III. The Implications of the New Constitution ...... 83

APPENDICES I. National Income and Manpower ...... 87 II. Finance and Foreign Trade ...... 98 x TABLE OF CONTENTS

Agriculture CHAPTER page 11 AGRICULTURAL BACKGROUND ...... 113 I. Historical Development ...... 113 II. Agriculture Today ...... 115 IIl. Production ...... 117 12 FACTORS CONDITIONING AGRICULTURE ...... 119 I. Climate ...... 119 II. Geology and Topography ...... 121 III. Soils ...... 122 IV. Land Use ...... 128 13 MAIN LINES OF PRODUCTION ...... 133 I. Sugar Cane .133 II. Rice .145 III. Coconuts .160 IV. Coffee ...... 165 V. Cacao .166 VI. Other Crops .169 VII. Livestock ...... 172 VIII. Fisheries ...... 180 14 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT ...... 184 I. Food Balance .184 II. Land Extension .186 III. Drainage and Irrigation .193 IV. Land Ownership and Tenure .206 V. Marketing of Agricultural Produce .209 ,VI. Agricultural Credit .213 VII. The Department of Agriculture ...... 218 15 FIVE-YEAR PROGRAM IN AGRICULTURE ...... 222 I. Priorities ...... 222 II. Supporting Policies ...... 223 III. Proposed Investment Program ...... 224 xi TABLE OF CONTENTS

APPENDICES page I. Calculations for Drainage ...... 228 II. Calculations for Irrigation ...... 239 III. Supplementary Tables ...... 249

Transport and Communications CHAPTER 16 PORTS AND INLAND SHIPPING.257 I. Ports .257 II. Inland Shipping .260 17 THE RAILWAYS .264 I. The Cost of Railway Rehabilitation .265 II. The Cost of Replacing the Railways by Roads . 273 18 ROADS ...... 283 I. Main Roads ...... 283 II. Interior and Feeder Roads ...... 287 III. Road Transport ...... 290 IV. Local Transport ...... 292 19 CIVIL AVIATION .294 20 POSTS, TELECOMMUNICATIONS AND BROADCASTING .297 I. Posts .297 II. Telecommunications and Broadcasting .. 298 21 RECOMMENDED FIVE-YEAR PROGRAM FOR TRANSPORT AND COMMUNICATIONS. 302

Forestry 22 FOREST RESOURCES AND ADMINISTRATION .. 307 I. The Forests ...... 307 II. Forest Administration ...... 310 III. Needs of Forestry Department ...... 311 IV. Forest Regeneration Program ...... 314 V. Appraisal of Forest Resources ...... 316

xii TABLE OF CONTENTS

CHAPTER page 23 TIMBER AND WOOD PRODUCTS ...... 317 I. Wood Products ...... 317 II. Additional Needs for Timber and Lumber ...... 327 III. Central Manufacturing Plant ...... 333

Industry, Mining and Power 24 INDUSTRY ...... 339 I. The Present Situation ...... 339 II. The Industrial Environment ...... 340 25 MINING ...... 351 I. Mineral Resources ...... 351 II. The Mining Industry ...... 352 26 POWER . .355 I. Present Production .355 II. Potential Hydroelectric Power.358

INDEX . 361

xiii

List of Tables

NUMBER page 1 Government Revenues and Development Expenditures, 1947-53 ...... 18 2 Breakdown of Government Expenditures, 1949-53 ...... 20 3 Recommended Five-Year Investment Program, 1954-58.. 30 4 Sources of Funds for Development, 1954-58 ...... 43 5 Potential Sources of Funds for Internal Loan Issues, 1954-58 ...... 46 6 Income Per Head in British Guiana and Neighboring Countries, 1950 ...... 87 7 Percentage Distribution of Net Geographical Product, 1951 ...... 88 8 Capital Formation, 1948-51 ...... 88 9 Estimated Distribution of the Labor Force ...... 91 10 Financing of Capital Formation, 1948-51 ...... 92 11 Breakdown of Foreign Financing of Capital Formation, 1948-51 ... 92 12 National Product and Income, 1942, 1948-5 .93 1 13 Index of Real Product, 1942, 1948-51 .94 14 Gross Capital Formation, 1948 to 1951 .95 15 Capital Structure of British Guiana, 1951 .96 16 Exports, 1947-52 .99 17 Consolidated Assets and Liabilities of the Commercial Banks, 1952 .101 18 Distribution of Accounts, Post Office Savings Bank, 1952.. 104 19 Output, Income and Expenditure, 1951 ...... 106 20 Balance of Payments, 1948-51 ...... 108 21 Production of Principal Agricultural Products ...... 118 22 Monthly Rainfall Records at Two Coastal Belt Stations.... 120 23 Acreage Under Cultivation ...... 129 24 Distribution of Farms by Size ...... 130 xv LIST OF TABLES

NUMBER page 25 Occupation of Gainfully Employed Population ...... 131 26 Sugar Prices and Production Costs ...... 135 27 Production Cost Per Ton Sugar in British Guiana and Jamaica ...... 136 28 Number of Sugar Workers ...... 137 29 Number of Day Units and Wages Per Ton of Sugar Produced ...... 138 30 Comparison of Crop Areas Under Various Canes ...... 142 31 Cycle Age of the Crops ...... 143 32 Gross Value of Farm Crops other than Sugar-1952 ...... 146 33 Proportion of Direct Sowing and Transplanting of Paddy ...... 148 34 Agricultural Machinery on Mechanized Farms ...... 152 35 Crop Area in the Mahaicony-Abary Rice Scheme ...... 154 36 Coconut Cultivation ...... 160 37 Comparative Coconut Returns in British Guiana and Ceylon ...... 161 38 Acreage, Production, Prices and Gross Yield Per Acre of Coconut ...... 163 39 Coffee Cultivation-1952 .166 40 Cacao Cultivation-1952 .167 41 Citrus Cultivation-1952 .169 42 Cultivation of Miscellaneous Food Crops--1952 172 43 Livestock, Meat and Milk Production ...... 173 44 The Fishing Industry ...... 181 45 Daily Food Intake in Grams Per Capita ...... 184 46 Export of Rice and Imports of Foodstuffs in Pounds ...... 186 47 Production and Imports to Reach Food Target, 1960 ...... 187 48 Rights to Crown Land Issued by the Department of Lands and Mines ...... 207 49 Estimated Amount of Additional Loans to be Made for Agricultural Purposes ...... 216 50 Recommended Additional Expenditure by the Depart- ment of Agriculture, 1954-58 ...... 225 51 Net Investment Program for 1954-58 ...... 226 xvi LIST OF TABLES

NUMBER page 52 Probability of Concentrated Rainfall During Growing Period of Autumn Rice Crop ...... 230 53 Frequency and Daily Amount of Rainfall During the Short Wet and Short Dry Periods ...... 234 54 Frequency of Monthly Rainfall ...... 242 55 Necessary Supply of Irrigation Water Per Acre for Spring and Autumn Rice Crop ...... 243 56 Statistics of Sugar and Sugar Products ...... 250 57 Statistics on Rice ...... 251 58 Condensed Food Balance Sheets, 1938, 1946, 1950, 1952 ...... 252 59 Transport and Harbor Fleet ...... 261 60 Estimated Railway Revenues, 1952-1958 ...... 271 61 Estimated Railway Operating Expenditures, 1952-1958.... 274 62 Estimated Costs of Road Construction of Various Classes ...... 285 63 Proposed Trunk Road System ...... 286 64 Recommended Transport and Communications Invest- ment Program, 1954-1958 ...... 303 65 Volume of Standing Timber in the Exploitable Forest, 1950 ...... 308 66 Revenues and Expenditures of the Forestry Depart- ment, 1942-1951 ...... 312 67 Output of Timber, Wood Products and Fuel from Crown Lands, 1951 ...... 318 68 Timber and Wood Product Exports, 1951 ...... 332 69 Recapitulation of the Recommended Investment Pro- gram for Forestry, 1954-58 ...... 335 70 Distribution of Industrial Production. 1951 ...... 340 71 Consumption of Selected Manufactured Products, 1951.... 342 72 Production of Principal Minerals, 1948-1952 ...... 352 73 Percentage Distribution of Power Consumption by Types of Users-Georgetown ...... 357 74 Power Revenue per kwh by Uses-Georgetown ...... 357

xvii

Maps and Figures

MAP 1 British Guiana ...... facing page iii 2 Drainage and Irrigation Corentyne Area ...... 204 3 Transport Map of British Guiana ...... 257 4 Forest Types and Field Administrative Divisions ...... 312

FIGURE 1 Aerial view of Mahaicony-Abary Rice Project ...... facing page 188 2 General Layout of a Polder ...... 192 3 Gravity Drainage Calculation ...... 202 4 Typical Irrigation and Drainage Layout for a Riverain Land Settlement Scheme ...... 203

Exchange Rates $1.00 B.W.I. = 58.3 U.S. Cents = 4 shillings and twopence $1.00 U.S. = $1.71 B.W.I. £ 1 Sterling = $4.80 B.W.I. 1 Million B.W.I. Dollars= $583,000 U.S. = £ 208,000 Sterling

NOTE 1) All dollar figures used in the text are B.W.I. dollars, unless specified to be U.S. dollars. 2) Imperial weights and measures are used in British Guiana.

xix

The Main Report

CHAPTER 1

The Economic Problem and Its Setting

In 1595 Sir Walter Raleigh reconnoitred the lower Orinoco in an unsuccessful attempt to find a route to the legendary gold mines of El Dorado, which were believed to lie in the mountains on the borders of what are now Venezuela and British Guiana. Raleigh led a second expedition in 1617 which came to a premature end as the result of a clash with a Spanish garrison on the Orinoco and which, through James I's anxiety to appease Spain, cost Raleigh his head. Although nearly four centuries have passed, the tradition of the interior as El Dorado still faintly persists in Guiana. The Spanish made no attempt to colonize Guiana, and the initiative passed to the Dutch West India Company, which established settlements in what is now Surinam and the neighboring areas of Berbice, Demerara and Essequibo. Despite interludes of French and English control and an influx of English settlers from the West Indies in the 18th century, the Dutch remained dominant until 1814, when Berbice, Demerara and Essequibo were finally ceded to Great Britain, to become the three counties of present day British Guiana. The place names of coastal British Guiana epitomize its history. Vreed-en-Hoop, Werk-en-Rust, New Amsterdam and many other picturesque Dutch names are mingled with others as uncompro- misingly British as Lichfield, Marlborough and Hampton Court, while a few French names, such as La Bonne Mere, Versailles and Bel Air, are also found. A few common terms, such as "stelling" and "stiver," and some family names also preserve the memory of Dutch rule. Place names record the early establishment of Dutch settlements some distance up the rivers, but further inland names of Amerindian origin predominate. I. Geography Position. British Guiana lies on the northeast coast of South America between Venezuela on the west and Surinam on the east. It 3 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

extends between Lat. 2 and 8 degrees N. and Long. 57 and 61 degrees W. It has a coast line of 270 miles, and extends south to the Brazilian border to a maximum depth of about 400 miles. The area is about 83,000 square miles, nearly that of England, Scotland and Wales combined. Climate. The climate exhibits the high rainfall and humidity and the narrow range of temperature characteristic of equatorial coastlands. Along the coast the mean annual rainfall ranges from 80 inches in the east to 110 inches in the west, falling mainly in two wet seasons, April-August and November-January. Towards the south the rainfall diminishes to about 60 inches, most of it concentrated in a single wet season from April to September. On the coast the mean monthly shade temperature varies only from 790 to 82°F., the daily range rarely exceeds 140, and temperatures above 900 or below 700 are very unusual. Nearly all the year a sea breeze tempers the heat and humidity of the coast. Inland the range of temperature is somewhat wider. The Land. After more than three centuries of colonization, the vast majority of the people of British Guiana are still to be found on a narrow coastal strip, two to eight miles wide, between the Coren- tyne and Essequibo Rivers in the eastern part of the colony. Virtually all agricultural and industrial activity is concentrated in this strip. Much of the strip lies below the high tide level of the sea, from which it has been reclaimed and from which it has to be protected by expensive and laboriously constructed sea walls, dykes and drainage systems. The unbroken flatness and the rectangular pattern of irrigation and drainage canals give the coastal plain an appearance reminiscent, but for the frequent clumps of coconut palms, of the Netherlands coast. A few miles inland the rich alluvial mud of the coast gives way to infertile, sandy soils covered with dense hardwood forests. Numer- ous rivers, chief of which are the Essequibo, Demerara, Berbice and Corentyne, lead to the interior. Their value as a means of transport is limited, however, by rapids 30 to 110 miles upstream, and their wide estuaries, which cut the coastal strip into four distinct sections, create special transport problems. Behind the coastal plain, dense forests cover the greater part 4 THE ECONOMIC PROBLEM AND ITS SETTING

(83%) of the country. They are largely uninhabited except for a few agricultural settlements along the river banks and for scattered mining and timber operations and Amerindian settlements. Most of the area is readily accessible only by air. In two areas the equatorial forests give way to grasslands: 1. The Rupununi Savannahs, where the rainfall is appreciably lower than on the coast, lie in the southwest close to the Brazilian border. Although they are subject to floods during the heaviest rains, at other times the rain leaches rapidly through the sandy soil, carrying away soluble minerals. Con- sequently the grass is sparse and deficient in minerals, and permits only a very extensive form of cattle raising on a few large ranches. The population of the Rupununi area is little more than 7,000, which includes a high proportion of Amerindians. 2. The Intermediate Savannahs lie in Berbice immediately behind the northeastern coastlands. Here, too, the soil is sandy and even more deficient in minerals than in the Rupununi. This disadvantage is partly compensated by much greater accessibility and a higher rainfall than in the Rupynuni; but as yet there is only a pilot cattle ranching scheme in the area. In the west of British Guiana the Pakaraima Mountains, a rugged and densely forested area of mountains and plateaus, rise in the Maza- runi basin. Because of the falls and rapids which interrupt the Mazaruni River, the area is virtually inaccessible except by air. There are considerable mineral possibilities in this area, although they have not yet been fully surveyed. Diamonds and gold are found, and interest has recently been aroused in deposits of columbite- tantalite and manganese. The sparse population consists mainly of miners and prospectors. The Potaro River descends from the plateau to the plain by the spectacular Kaieteur Fall, with a sheer drop of 741 feet. Its development as a source of power has often been considered, but the lack of hydrological data and the distance of the fall from the principal mining operations as well as from the coast, place any large-scale development outside the range of present possibilities. 5 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

II. Productive Resources Agriculture. Agriculture is the chief economic activity of the colony. Together with the processing of agricultural products, it provides 38% of the national income, employs 40%o of the labor force, and provides about two thirds of the colony's exports. The two principal crops are sugar and rice, both grown entirely on the coastal strip. Sugar and its byproducts, with a total value of product of $47.8 million in 1952, alone constitute more than one half of British Guiana's exports. Virtually all of the sugar is cultivated by wage labor, much of it working only part time, on a small number of large plantations, owned by long established British firms which, in addition to the production and export of sugar, rum and molasses, are engaged in general import and export trade. Ninety percent of the output is exported, mostly to the United Kingdom and Canada. By means of improved methods of cultivation and labor-saving devices, the producers hope to increase total production from 243,000 tons to 275,000 tons in the next few years, without appreciably increasing the area under cultivation. Even though this program reduces costs, British Guiana is likely to continue to be a high cost producer, dependent on a protected market in the United Kingdom. Rice is the second crop of the colony. Production in 1952 was valued at $10.9 million, of which 59%o was exported. In contrast to sugar cane, 'nearly all of which is grown on no more than 17 estates, rice growing, apart from a single large mechanized project, is mainly in the hands of small farmers. In 1952 there were estimated to be about 21,000 of these farmers, with an average holding of 6.5 acres. The Mahaicony-Abary Rice Development Scheme for the mechanized production of rice was started in 1942 and now covers about 11,000 empoldered acres, of which 4,000 are under cultivation. The government proposes to expand the scheme by adding an additional 6,000 acres at nearby Onverwagt. The value of all other agricultural products amounts to $11.4 million. Tree and food crops, chiefly fruits, coconuts, vegetables and maize, are grown primarily for home consumption. Beef cattle raising is largely confined to the Rupununi Savannahs. The poor grazing permits no more than 15 head to the square mile. 6 THE ECONOMIC PROBLEM AND ITS SETTING

Lack of road, rail or water transportation to the coast 200-300 miles away is a further handicap. About half the cattle are marketed by driving them 200 miles down a rough trail to the Berbice coast, a journey on which they may lose 10% or more of their weight. Most of the remaining cattle are slaughtered at Lethem and the meat is moved by air. The area is capable of a limited expansion in beef production over the next five years. Dairy cattle raising, now confined to the coast, offers prospects for expansion on the river banks of the Demerara and Essequibo in the neighborhood of Georgetown, particularly when combined with crops. This expansion cannot take place, however, until a milk pasteurization plant is established in Georgetown. The Forests. The forests of British Guiana offer a great variety of timber species but only a few are known and in continuous demand in world markets. The most valuable species is greenheart, a hardwood produced only in British Guiana. Because greenheart is nearly indestructible, it is especially useful in marine construction. Other fine hardwoods are mora, a virtually rot-proof wood, and wallaba. Silverballi, wamara, purpleheart, cedar, crabwood, and a number of other species of varying degrees of value, are also found. Many of them, if better known abroad, could provide exports additional to the predominant greenheart. In the absence of roads and railways, timber is chiefly moved by river. Punts or ships are required, however, since hardwoods like greenheart will not float. Transport difficulties and the dispersion of the valuable trees among less marketable species have led to a natural tendency to cut out the most accessible and valuable timber and move on to new areas. At present the chief area of logging and of many sawmill operations is in the relatively accessible Bartica Tri- angle between the Essequibo and Cuyuni Rivers. The largest operation in this area is conducted by British Guiana Timbers, Ltd., a Colonial Development Corporation project. The production of logs in 1952 is estimated at about five million cubic feet of true volume and six million cubic feet of fuel wood and charcoal. Timber exports in 1952, nearly all greenheart, were valued at $2.1 million. Minerals. British Guiana now produces one fifth of the world's bauxite. In 1952, exports of $22.2 million accounted for nearly 30%o 7 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA of the colony's exports, and they provided 15% of the government's total revenue and about 9% of the national income. Within the mining sector, bauxite accounts for 85-90% of the value of total output, and about one half of all employment. Over 90% of the colony's output of 2,300,000 tons is produced by the Demerara Bauxite Company, a subsidiary of Aluminium Ltd., the parent company of the Aluminum Company of Canada. The center of the company's operations is at Mackenzie on the Demerara River, 65 miles inland from Georgetown. A large plant for the drying and calcining of bauxite is located there. The remainder of the colony's output is mined by the American-owned Berbice Bauxite Company at Kwakwani on the Berbice River. Ninety percent of the colony's bauxite output is shipped to Canada, and the remainder to the United States and the United Kingdom. The Demerara Bauxite Company expects that its production will remain fairly stable for the next five years, though there may be an increase in the proportion of ore calcined in the colony. It is unlikely that further stages in the processing of bauxite into alumina will be undertaken in the colony. Other mining is chiefly of diamonds and gold. The bulk of the diamond output is produced from the small workings of individual miners. Production is likely to stay.at about 40,000 carats a year during the next five years. The output of gold was 24,000 ounces in 1952. It is expected to be nearly doubled in 1954, when British Guiana Consolidated Gold Mines, Ltd. will bring a new dredge into operation at Tumatumari on the Potaro River. In 1952 some production of columbite-tantalite ore began and prospecting is being carried on for manganese and chromium ores in the Mazaruni Basin. Until the possibilities have been more fully surveyed, it will not be known whether the deposits warrant commercial exploitation. Industry. Industrial activity is almost wholly confined to the coastal zone. It consists mainly of the processing of local raw materials-rice, sugar and timber-and some light manufactures such as cigarettes, matches, shirts and soft drinks for local consumption. Demerara rum, a product of the sugar industry, is of high quality and widely known abroad. 8 THE ECONOMIC PROBLEM AND ITS SETTING

A large sawmill, probably the largest in South America, has just been completed by a CDC enterprise, British Guiana Timbers, Ltd., at Houston, on the outskirts of Georgetown. There are many small sawmills, usually at some distance from the logging sites. Their operations are hampered by inadequate equipment and inefficient methods. Except for the sugar mills, industrial establishments are generally very small. Most of them are owned and operated by private firms and individuals, usually British or Canadian. Until recently the development of the colony's industry received little special encouragement from the government. The local market for industrial products is limited and labor trained in factory work is scarce. Nevertheless, as pointed out in Chapter 8, there are opportunities to expand or improve existing enterprises and to start new ones utilizing local raw materials.

III. The People British Guiana is, somewhat paradoxically, a South American country whose language is English, whose favorite sport is cricket, and whose people predominantly originate from India and Africa. In 1952 the colony's total population was estimated to be 450,000. Its composition on the basis of race was as follows: East Indians ...... 45%o Africans ...... 36 % Mixed ...... 11 %o Amerindians ...... 4%o European ...... 3 % Chinese ...... 1 %o When the cessation of the slave trade in 1807, followed by the abolition of slavery in 1834, led to a shortage of labor on the sugar plantations, workers were attracted from India by a system of indentured labor. Although their contracts entitled them to be returned to India after serving their term, many elected to stay permanently, and in recent years the East Indians have become the largest element in the population. The numerically small European element is composed almost exclusively of British and Portuguese, the latter being the descendants of 19th century immigrants from Madeira and the Azores. 9 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The British are chiefly found in government and at the managerial level on sugar estates and in industry and commerce. The Africans still predominate on the sugar estates, but many are now in government, in the professions and in clerical posts. The East Indians have tended to reproduce the economic patterns of their country of origin and are responsible for the growth of small-scale rice farming. Their thrift and enterprise have given them a conspicuous place in various forms of trade and they are also prominent in the professions. Despite these broad differences of function, there is a noticeable absence of rigid social and economic barriers. It is to be hoped that the growth of political activities, which the current constitutional changes are certain to promote, will not impair the present racial harmony. Leaders of all sections of the community are aware of this danger and may be relied upon to do everything to avert it.

A. GROWTH OF POPULATION Since 1945 the annual rate of growth of population has increased sharply from 1.5% to 2.8%. This is a factor of major significance for the economy, and one which, more than any other, has influenced the mission's recommendations. Before 1945 the drainage and irrigation canals of the coastal area had long furnished ideal breeding places for Anopheles darlingi, the malaria-carrying mosquito, and malaria was the principal cause of sickness and death. In that year a thorough campaign to spray all homes with DDT was undertaken. This, the first civilian campaign of its kind in the world, was strikingly successful, and in a very short time the Anopheles darlingi was virtually eliminated. The disappearance of malaria brought about a sharp fall in the death rate, which fell from an average of 19.7 per 1,000 over the period 1940-45 to 14.6 over the period 1946-51. The reduction was most marked in the lower age groups. In particular, infant mortality showed a striking decrease from 110.7 per 1,000 births in 1940-45 to 81.8 in 1946-51. Over the same interval the birth rate rose from 35.1 to 40.3. The conquest of malaria has been most significant for the East Indians, who, formerly highly susceptible to the disease, have recently become the most numerous racial element of the population. Since the new trend of population chiefly affects the lower age groups, it will not significantly increase the labor force until children 10 THE ECONOMIC PROBLEM AND ITS SETTING

born in 1945 leave school about 1960. Its immediate effect is to increase pressure on school and housing accommodation and, to a lesser degree, on imports of consumer goods. Estimates of the growth of the labor force before 1960 depend on the pre-1945 population trend. Using, therefore, 1.5% rather than 2.8% as the appropriate rate of growth, it may be estimated that the labor force, about 146,200 persons at the time of the 1946 census, had risen to 161,000 at the end of 1952 and is likely to reach 176,000 at the end of 1958.

B. EDUCATION Primary education is compulsory between the ages of six and 14. There are 279 primary schools, most of which, outside Georgetown, are small rural church schools receiving government aid. The staffing is based on the pupil teacher system, under which suitable pupils remain in the school from 14 to 18 as apprentices and thus qualify, subject to an examination, to become teachers. They may add to their qualifications and status by passing-further examinations. There is a government Teachers' College which, however, turns out no more than 20 trained teachers a year, so that the proportion of trained teachers is low. The primary schools are in general overcrowded and understaffed. Classes of 90 children are not uncommon. Despite these and other handicaps, the teachers achieve a highly commendable degree of success. Considering the difficulty of securing the attendance of children in remoter areas, the 83% literacy rate of the colony is remarkably high. With the exception of two government schools, one for boys and one for girls, and one government-aided coeducational school, secondary education is entirely in the hands of independent church and privately owned schools. The government schools have a substantial proportion of scholarship pupils, the remainder paying moderate fees; these schools are of very high standard, while there is great variation among the others. Education in nearly all the secondary schools is directed towards certain external school examinations of English uni- versities. Since only the government schools have adequate labora- tories for science training, most of the pupils taking these external examinations concentrate on arts subjects. The result is that many pupils leave school with an education of an academic and literary 11 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA type which gives rise to a demand for "white collar" jobs which the economic structure of the colony cannot adequately meet. In 1948 a University College of the West Indies, conferring London University degrees, was opened in Jamaica, and has made good progress. It offers British Guianese students an alternative much less costly than going to the United Kingdom, although it will take time for it to rival British institutions in variety of courses as well as in prestige and other forms of appeal.

IV. The Degree of Development British Guiana is a developing economy. In many fields the degree of progress and development is already high. Fiscal and public administration and education and public health, which are often very backward in underdeveloped countries, are already sufficiently advanced to provide a sound basis for the further progress of the economy as a whole. Moreover, a substantial postwar development program has already been carried out. In 1951, the net national income was estimated at $136 million (U.S. $79 million), or about $315 (U.S. $183) per head. Real income per head has increased by more than 19%o in the past 10 years. Income per head compares favorably with countries such as Mexico and the Dominican Republic which have experienced considerable growth and development in recent years, although it is somewhat lower than in Surinam and Brazil. The improvement of public health is shown by the decline of the death rate. Since malaria and yellow fever, once endemic, no longer present a serious problem, the health of the colony now compares favorably with other areas of similar climate and occupations. Cer- tain typical tropical diseases such as filaria, hookworm and leprosy are still not uncommon, although progress is being made against them. Inoculation and the extension of pure water supplies are gradually reducing the incidence of enteric fever. Special attention will have to be given to the serious housing problem in the next few years, however, if the growth of population is not to lead to a deterioration in health standards. Standards of public administration are high. The colony possesses an efficient fiscal system on the British pattern. The budget is well administered and the tax system is as direct and progressive as the 12 THE ECONOMIC PROBLEM AND ITS SETTING circumstances permit. Government revenues in recent years have grown more rapidly than national income. Since the colony does not have to bear the burden of expenditure on defense, the bulk of the revenues, which absorbed 21,% of the national income in 1951, can be directed to economic and social ends. The rate of growth of local savings is increasing, while the close financial connection with London has permitted the colony to obtain development loans on favorable terms. Gross investment in recent years has been running at a rate of over 20,% of national income. This investment has been largely carried out by private enterprise, mainly of external origin, attracted by the colony's position in the Commonwealth and its financial stability. Government capital formation, accomplished largely by the use of external loans and grants, has also contributed in an increasing degree to investment in more recent years. To the colony, the terms of trade have become increasingly favorable over the past few vears, in part owing to Commonwealth preference. Since 1947, there has been a growth in real national income of 12%o, while as a result of private and public investment, exports of sugar have increased from 185,000 to 234,000 tons, rice from 20,000 to 28,000 tons and bauxite from 1,290,000 to 2,300,000 tons. There has also been an improvement in exports of less important products, such as timber, gold and diamonds.

V. The Problem of Development Although the colony has progressed in the past seven years, the problem of continuing and accelerating the development of the colony's resources is not one which admits of quick or easy solution. The brief description of the geographical distribution of the population makes clear the fundamental difficulty. British Guiana presents the apparent paradox of a rapidly increasing population confined to a narrow ribbon of coast, preserved from the encroachments of the sea with great difficulty and expense, while many thousands of square miles of hinterland remain almost uninhabited. From this point of view, the development of the interior presents an obvious challenge. There are, however, two powerful reasons why development of the interior cannot provide an immediate outlet for the growing population. In the first place, the potentialities of the interior are very 13 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA imperfectly known. Much of it is unexplored. A comprehensive soil survey, followed by appropriate crop experiments, is an urgent necessity. What is known of the soil is, in general, not encouraging. A good deal of prospecting for minerals is already going on, but knowledge of mineral possibilities is still at a very early stage. In the second place, even if thorough surveys revealed attractive agricultural and mineral possibilities, they could not be exploited on a large scale until a lengthy preliminary phase of forest clearance and road construction had been completed. At least in the short run, therefore, development must take place primarily in the coastal area. The mission believes, however, that the possibilities of the interior deserve much more attention than they have received in the past. There should be, the mission suggests, no delay in organizing surveys and agricultural experimental stations, and in beginning a gradual extension of the road system. There is also scope, as indicated in later chapters, for improvements in the lumber and beef production already carried on in the interior. Development of the coastal area, however, involves costly large- scale irrigation and drainage projects. These not only take years to plan and execute, but call for extensive complementary investment in housing, schools, roads and processing plants. There are other problems. The economy is heavily dependent on sugar, which forms 56% of exports. British Guiana is, however, a high cost producer relying on a continuation of its present favored terms of access to the United Kingdom market. There are good prospects that the favorable export position in recent years of sugar, as well as of bauxite and rice, will continue for some years to come. It is clear, however, that in planning the country's long-term development, special attention must be paid to possibilities of diversification. The possibilities of reducing dependence on imports by developing domestic production appear to be marginal. The chief imports are flour, petroleum and manufactured goods, mainly textiles and machinery. Temperate cereals cannot be grown in British Guiana, so that flour will have to continue to be imported, although it can be replaced to a limited extent by rice. Various types of ground provisions can, however, be grown and there are possibilities for increasing beef and dairy production, as well as that of coconuts and cacao. Softwoods, at present imported, can be replaced by domestic woods. 14 THE ECONOMIC PROBLEM AND ITS SETTING

While there is scope for expansion of secondary industries, it is unlikely that there will be any major industrial development in the foreseeable future. The internal market is too small to give much scope for industries in which efficiency depends upon large-scale production. Moreover, there is a lack of raw materials and power for major industries and, although there are hydroelectric possibilities in the interior, technical, economic and financial factors make their large-scale exploitation in the near future highly problematical. Brit- ish Guiana's development, therefore, for many years to come, must mainly take the form of the expansion and diversification of primary production in which the colony enjoys certain comparative advantages. Two other problems of the colony should be noted. The first is the shortage of technical experts in government departments, and their relatively rapid turnover, because of more attractive terms of employment elsewhere in the Commonwealth. The second is the fact that the population of the colony is perhaps more literate than skilled, as the result of an educational system much more heavily weighted in the direction of arts than techniques. Nevertheless, as the mission has tried to make clear in its recommendations for a development program for the next five years, the mission believes that, with energy and good will, the problems of the colony can be resolved and its continued progress assured. The recent constitutional changes, described in Chapter 10, place future economic policy in the hands of ministers responsible to a House of Assembly elected by universal suffrage. The people of British Guiana will have substantial freedom to determine the direction and pace of their economic progress, while maintaining the advantages of their connection with the Commonwealth. The degree to which the economic problems outlined in this report can be met will be a crucial test for both the government and the people of the colony.

15 CHAPTER 2

The Postwar Development Program

In the postwar period, a sizeable development program was carried forward in British Guiana. Public and private investment together averaged 21% of gross national product between 1948 and 1951. Private investment alone furnished nearly 17%o out of this 21%. A very substantial part of the funds for investment came from external sources. On the whole, the results were satisfactory. Between 1947 and 1952 exports of sugar rose by 20%, rice by 40% and bauxite by nearly 80%. In real terms, i.e. allowing for the rise in the price level, national income increased by about 14%o between mid-1948 and mid-1951 (4.6% a year) and average income per head by 6%. There was a further increase in national and per capita income in 1952. In the public sector, investment for development purposes (as somewhat loosely defined) from the end of 1946 to the end of 1952 amounted to about $28 million. The program resulted in the completion of a number of projects, especially in agriculture, which strengthened the economy, and in marked improvements in the health, educational and social welfare services of the colony. The program was carried out without fiscal or monetary disturbance, an achievement especially noteworthy in view of the unsettled world conditions of the period. The experience gained in carrying out this program affords guidance for future development. If, therefore, the mission draws attention to some shortcomings, it is with this end in view, and not from any underestimation of its substantial achievements. In the 1946-52 program, the mission noted certain factors important for future development planning. Administratively, there appeared to be a lack of a well-knit over-all program and policy, a tendency to engage in ad hoc planning, inadequate coordination among 16 THE POSTWAR DEVELOPMENT PROGRAM government departments in both the planning and execution of projects, and often insufficient general engineering and other preparatory work. These conditions were often aggravated by a rapid turnover of government staff. In the investment program itself there was a comparative neglect of such sectors as transportation, communications, industry and forestry, and a tendency to devote a perhaps overgenerous proportion of the colony's financial resources to social welfare expenditures which were only indirectly productive. The government throughout the period was aware of many of these factors, and strenuous, if not always successful, efforts were made to correct them. It appeared to the mission that the original plans for major projects were frequently changed, partly because of the turnover of government staff or of consultants and advisers. Projects were often elaborated in isolation, without sufficient consideration of their rela- tions to the needs of the economy as a whole or of the complementary needs for housing, roads, schools or land settlement programs to make them effective. In consequence, required expenditures were sometimes underestimated and prospective results, in relation to expenditure, overestimated. Even under such difficulties, there were important accomplishments; and a careful study of the past should lead to more substantial achievements in the future. Preceding missions to British Guiana, in both the prewar and immediate postwar periods, expressed concern over the relatively low level of government revenue in relation to the development needs of the colony. Since 1948, and especially since 1950, there has been a sharp improvement in the financial position of the colony. Thanks in large measure to a flexible and well managed budgetary and tax system, the government's "free" revenues (i.e. revenues over and above payments required for debt service and to cover operating losses of state enterprises) have increased from $17.8 million in 1949 to an expected record in 1953 of $27.7 million (see Table 1). Revenues rose more rapidly than prices during the period. The government has maintained consistent budget surpluses and cash reserves have reached a relatively high level, although part has been earmarked for development projects and for certain extraordinary expenditures such as the stockpiling of rice bags. Table 2 contains a breakdown of government expenditures for the 17 TABLE 1

GOVERNMENT REVENUES AND DEVELOPMENT EXPENDITURES 1947-1953 (in thousand dollars) 1947 1948 1949 1950 1951 1952 1953 (rev. est.) (est.) Revenues ...... 15,923 18,027 17,871 20,015 23,160 26,840 27,774 Development Expenditures: 1. From revenues ...... 618 1,134 2,108 1,967 2,728 2,262 2,873 co 2. From external loans ...... - - 68 1,147 2,528 592 5,225 3. From internal loans ...... 635 479 899 678 1,080 409 210 4. From grants ...... 2,345 1,419 1,362 967 787 2,020 3,073 Total ...... 3,598 3,032 4,437 4,759 7,123 5,283 11,381 Percent of revenues directed to development ...... 3.9 6.3 11.8 9.8 11.7 8.5 10.3

NOTES: 1. Revenues after payments on debt service and operating losses. 2. Development expenditures are those from both the budget and surplus. 3. Internal loans are mainly those raised in 1945. 4. External loans in 1953 cover certain expenditures in previous years. 5. 1953 expenditures exclude cash advances pending raising of a loan. THE POSTWAR DEVELOPMENT PROGRAM past five years by source and objectives. In 1953, expenditures for social welfare, and police and justice, are estimated to be about 50% of free revenues, after assigning to each of the departments its appropriate share of the government cost of living allowance. Expendi- tures for the economic departments and for development are about 30 % of free revenues. Direct development expenditures, however, are only 10% of such revenues. In real terms, budgeted receipts and expenditures from 1949 to 1953 showed the following changes:

Increase in government revenue ...... 26% Increase in social welfare expenditures ...... 31 % Increase in development expenditures ...... 5 % Decrease in expenditures on economic departments ...... 4% The economic departments, Public Works, Agriculture, Forestry, Lands and Mines, and Interior, responsible for the development of the country's resources, have thus experienced a slow decline in their financial resources over the past four years. Within the development program itself a substantial share of development funds was allocated to social welfare (housing, education and public health) and to public buildings. The classification of the latter as "development" follows the government's classification, although it is broader than the mission would normally adopt. Together, social welfare, justice, and public buildings absorbed almost 40% of development expenditures from 1947 to 1952. A further 23% went to three major irrigation and drainage projects. The remaining 37% covered all other purposes, including agriculture, forestry, transportation, communications, industry and general surveys and research. In preparing a recommended program for the future, the mission has given greater weight to the directly productive sectors of the economy, which did not, in its judgment, receive an adequate share of past investment allocations. There are certain aspects of the financing of the past program that have a bearing on future financial policy. Of the $33 million allocated to development in the five years from 1949 through 1953, slightly less than $12 million came from internal revenues, although revenues increased substantially in this period, while around $18 million was financed from external sources. Colonial Development 19 TABLE 2 BREAKDOWN OF GOVERNMENT EXPENDITURES" (1949-1953) (in thousand dollars) 1949 1950 1951 1952 1953 C..> (revised est.) (est.) I. From Government Revenue Social Welfare and Justice > Education ...... $ 2,145 $ 2,727 $ 2.818 $ 2,945 $ 3,387 b Public health ...... 2,352 2,484 2,722 3,116 3,278 ; Social assistance ...... 713 740 816 858 1,020 t' Pensions ...... 750 849 944 1,013 1,087 > ° Police and judiciary ...... 1,935 2,106 2,259 2,370 2,459

$ 7,895 $ 8,906 $ 9,559 $10,302 $11,231 b Economy Agriculture . .$ 657 $ 643 $ 980 $ 1,194 $ 894 > Forestry . . .171 140 156 161 179 > Lands and mines . . .183 200 199 221 230 ; Interior . . .90 105 100 107 115 Public works . a) Maintenance (recurrent) . .2,106 2,161 2,254 2,414 2,404 i b) New works (extraordinary) . .1,297 1,249 1,594 1,865 1,827

$ 4,504 $ 4,498 $ 5,283 $ 5,962 $ 5,649 Miscellaneous Cost of living allowances ...... $ - $ 114 $ 550 $1,869 $2,060 Subsidies ...... 197 - - 750 750 Operating losses . a) Post, tel. & tel ...... 190 298 217 318 355 . b) Railways & steamers ...... 1,721 1,461 1,426 1,303 1,187 : Other government expenditure ...... 2,741 4,9722 4,246 4,029 3,797 > Co $ 4,849 $ 6,845 $ 6,439 $ 8,269 $ 8,149 3 Total ...... $17,248 $20,249 $21,281 $24,533 $25,029 >r II. From Surplus (development projects) ...... $ 241 $ 749 $ 990 $ 381 $ 1,376 t III. From Nongovernment Revenue 3 . CDW Projects $ 1,378 $ 1,103 $ 1,218 $ 2,200 $ 3,073 z

Loans .967 1,824 3,658 1,359 5,436 ':

Total .$ 2,345 $ 2,927 $ 4,876 $ 3,559 $ 8,509 Grand Total .$19,834 $23,925 $27,147 $28,473 $34,914-

Expenditures for public debt service omitted. Includes funds for flood relief measurcs. 3Colonial Development and Welfare grants made by H. M. Government under the Colonial Development and Welfare Act. THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA and Welfare grants and loans for developmental purposes came to over $8 million, while other external loans raised during the period amounted to $15.5 million. Some expenditures came from loans raised internally in 1945. The mission believes that greater use of the steadily increasing government revenues for development purposes could have reduced the amount of borrowing required, and that it would have been possible to have raised a greater proportion of loan funds internally. A better adjustment in the timing of loan issues in relation to both cash reserves and the estimated rate of expenditures on public works projects, might have reduced the expenses and carrying charges of such issues. At the end of 1948, for example, less than half the proceeds of the 1945 internal issue had been spent. At the end of 1952, less than 42% of the London issue of 1951 had been spent. It is understandable that the government was unwilling to embark on major projects without an assurance that the financing would be forthcoming, and that it was difficult to foresee the future market for colonial issues in London or to forecast government revenues precisely. It should be added, moreover, that the policies adopted took the form of caution and conservatism in the use of public funds. It should, however, be possible for the government to finance internally most of its investment program during the next five years, while still maintaining its conservative financial principles.

22 CHAPTER 3

The Recommended Five- Year Development Program 1954-58

I. The General Aim Because of the rising population, a continuing high level of domestic investment is essential to maintain or increase the present standard of living. The investment program recommended by the mission for 1954 to 1958 aims to increase the national income by 20%o and income per head by 6%o in the next five years. Its success will depend very heavily on the maintenance of a high level of both private and public investment. To achieve the over-all objective of increasing the colony's gross national product, the recommended program has four principal aims, which are essential to this objective: 1. To strengthen, as rapidly as the technical resources of the colony permit, those sectors which appear most urgently in need of improvement, in order to provide better balance in the economy, 2. To provide for continued progress in those sectors where the economy is already strong, 3. To provide a program of technical research and experimentation in agriculture and related fields as well as soil, geologic, hydrographic, topographic and other surveys, as a prerequisite for the development of the colony's resources, both during the next five years and thereafter, 4. To stimulate local savings and local investment, both public and private, in order to reduce the dependence of the economy on external capital inflows and external grants. The recommended development program proposes a moderate increase in the rate of public investment in the next five years over 23 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA that in 1948-1952; under this program, such investments would average about 8%o of gross national product. The ability of the economy to sustain a continued growth and expansion will, however, depend primarily on the extent to which private investment is maintained at approximately the same level as in the past four years. It is more difficult to predict the level of private than public investment. A moderate decline in the rate of investment in the sugar and mining industries can be anticipated as their postwar investment programs near completion. But the impact of such a decline on either employment or income in the colony is likely to be slight and should, in any case, be offset by a higher rate of public investment. To maintain adequate private investment in other sectors will require the continuance of a favorable political and economic environment for foreign capital inflow as well as government measures further to encourage domestic savings and domestic investment. A substantial share of the mission's proposed government investment program is for credits and technical assistance to private enterprise in such fields as agriculture, forestry and housing. These are intended to stimulate investment both directly and indirectly in the expansion of industries supplying stone, timber and other materials needed for the development program. Assuming that the rate of private investment can be maintained at or near its present level, public and private investment would together average about 24% of the 1953 level of gross national product, with a bulge in 1954 and 1955 when several large government projects will be under way. Investment at this rate may be expected to result in an increase of not less than 20%o in the national income over the next five years, an increase approximately 6% greater than the expected rise in population during the period. The investment program may, in fact, produce somewhat better results, since the public share is directed to strategic points in the economy and it is more heavily weighted in the direction of directly productive investments than was the case during the previous five years. In addition, some of the government investment projects begun during the earlier period are now nearing completion and will reach their full fruition in the coming five years. On the other hand, parts of the recommended program will not yield results until the 1960's. 24 THE RECOMMENDED FIVE-YEAR DEVELOPMENT PROGRAM

II. The Five-Year Program

The mission formulated its recommended five-year program in close collaboration with the government staff. and was thus able to take full account of all current projects and activities of the government, including projects under preliminary study as well as those in an advanced stage of preparation. Whether or not a decision had been taken, the government urged the mission to give an independent evaluation of all projects. The recommended five-year development program, presented in Table 3, outlines the main investment objectives in the public sector, including proposed credits for agricultural development and for private enterprise in other sectors. The program includes the projects which, in the judgment of the mission, promise the most return to the colony in the light of the financial resources available, the existing technical staff and manpower, and the time needecl for engineering planning. Many of these projects are already under way; others are proposals of the mission which will require administrative or engineering study by the government. It will be noted that Table 3, being an outline of a public investment program, is confined primarily to government projects or private projects requiring government financing or credit. The Tumatumari power project, which is expected to be financed by the CDC, has, however, been included because of the government's interest in this pilot hydroelectric project in relation to future water power development in the colony. The program, as recommended, should be regarded as flexible both in its investment targets and its methods of financing. It should be reviewed carefully each year in the light of current fiscal, trade and economic conditions, and the degree of progress achieved in carrying out the major investment projects. In preparing its program the mission has taken account of the progress already made in many sectors of the economy and the needs and potentials in other sectors. In such sectors as mining and the sugar industry, no special government projects will be needed; private industry is fully capable of undertaking the necessary investment. Major public investments are recommended in the fields of agriculture, and of transport and communications, which together would absorb 71% of the development funds. Expansion and diversifica- 25 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA tion of agricultural production are essential to the further growth and progress of the economy. The proposed transport program is closely tied to agricultural development. It aims to reduce costs of transport of agricultural products and to open new areas for agricultural development. The transport program is also designed to promote the development of the interior and of forestry. The forestry program, in turn, aims to increase the production of timber products, partly for export, but also for building materials needed for the development program, particularly in housing and transport. The proposed program for the social sector provides for an expansion of construction of primary schools and housing as the most urgent needs of the sector and for expanded vocational training to meet the growing needs of the economy for skilled labor. The five- year program also provides for substantial surveys and research, as a basis for further development and as a means to encourage private investment. As a correlative part, the proposed program recommends substantial credits for industrial development, which is expected to be based primarily on local raw materials. Since it is impossible to forecast with any accuracy price changes over the next five years, the cost estimates are based on prices as of early 1953. Included in the cost estimates are the recurrent costs of new projects and of additional staff in the various government departments. To accomplish the general objective of a 20%o increase in the national income in the next five years, the mission proposes the following specific program to be undertaken by the government, as outlined in Table 3: In Agriculture. The program recommended for agriculture represents, in its main features, an investment program already planned by the government. There are, however, a number of modifications and additions to the program, which the mission believes to be essential to an effective long-range program for development of the colony's agriculture. Public and private investment should provide sufficient additional food crops to meet the needs of a growing population as well as a moderate increase in sugar production and a substantial rise in rice producticin. Some increase in beef and dairy cattle production can also be anticipated. The program incorporates the two major government irrigation 26 THE RECOMMENDED FIVE-YEAR DEVELOPMENT PROGRA4M and drainage projects (the Boerasirie and Corentyne Schemes) scheduled for completion in the next five years. The program also includes the expanded rice scheme at Onverwagt, an extension of the Mahaicony-Abary Scheme. The three schemes' together will add, in the next five years, nearly 25%o to the cultivated land area of the coast. Essential to their effectiveness are the two government rice mills planned as a part of the program. To make these schemes fully effective, the mission proposes that the government undertake a land settlement program to assure the most effective utilization of the lands involved, together with appropriate technical advice and financial assistance. This program should eventually settle up to 5,000 farmers on economically sized individual farms. The mission believes that preparation for further drainage and irrigation schemes, to be undertaken after 1958, will require five years of study and preparation. The program suggested by the mission includes a substantial expansion in research and experimentation to be undertaken by the Department of Agriculture, in order to: 1. Diversify the cropping system, intensify cultivation, and improve yields of existing crops, 2. Improve the beef and dairy cattle industries, 3. Improve the inland and coastal fisheries.

In Transport and Communications. In order that the transport and communications systems may serve adequately and economically a growing and developing economy, the mission recommends an investment in this sector second only to agriculture, and absorbing 34%o of the total cost of the development program. The recommended program includes the rehabilitation and modernization of the railway system, improvement of the intercoastal ferry and shipping services, and the construction, largely on the existing road base, of a modern trunk highway system. In addition, the transport program includes needed feeder roads on the coast and in the interior. The mission believes that the proposed railway, shipping and port program can be completed within five years, as well as about two thirds of the proposed road program. The program also includes a modern telecommunications system, 27 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA already planned by the government, and an expansion of the internal air services. Other Sectors. The recommended program for forestry is designed to improve the production of timber and wood products for a growing local demand (in particular for the development program) and to attain increased exports, while providing for the regeneration and preservation of the forest areas. The program includes provision for improvement and modernization of both the logging and wood processing industries. In addition to the two rice mills, the mission proposes in the industrial sector a milk pasteurization plant, an ice factory and a fish-meal factory at Georgetown, as well as a modern abattoir in the capital. A number of other proposals include stone quarries, tanneries, a brick factory and wood processing industries, and suggestions for other industries which may be suitable for the colony. The mission further proposes a system of industrial credits for improving existing industries and establishing new industries. In the social sector, the most urgent need is for rural and urban housing to improve living and health standards and for additional primary schools to take care of the overcrowded present day school system. Extensive investment to attain these goals is included in the recommended program. The mission has also included in its recommended program funds for continued geologic, hydrographic, aerial and soil surveys as essential to the future development of the colony's resources. The recommended program, by sectors, is presented in greater detail in Chapters 5 to 9, and in the technical reports of Part II. Effects of the Program. The program, as outlined, should bring a better balanced economy, and an improved external payments position, directly through increased exports of rice, sugar and timber and indirectly through lower production and transport costs. The mission believes the program can be carried out while maintaining the sound financial position of the country. The program should prepare the way for further development and land settlement schemes in stages after 1958 to absorb the sharp increase in the labor supply expected shortly thereafter. A part of the program takes the form of preparation for later results; the major part, however, will show re- 28 THE RECOMMENDED FIVE-YEAR DEVELOPMENT PROGRAM sults within the five years, as will projects already undertaken by the government prior to 1954.

III. Institutions to Carry Out the Program

To carry out the planning and execution of the program, the mission recommends two major institutional innovations, the first already under consideration by the government: 1. The formation of an Economic Council with a secretariat under the administration of the Development Secretary; and 2. The establishment of a Credit Corporation to administer all credits designed to encourage developments in agriculture, industry, forestry, fisheries and rural and urban housing.

A. ECONOMIC COUNCIL

In accordance with the recommendations of the Waddington Com- mission, which proposed the constitutional changes now in effect, the government has under consideration the formation of an Economic Council at the ministerial level, composed of the Financial Secretary, the Minister of Labor, Industry and Commerce, the Minister of Agri- culture, Forests, Lands and Mines, and the Minister of Communica- tions and Works. It is proposed that the chairman should be a minister without portfolio who would be able to devote his full time to development matters. The secretariat of the Council would be headed by the Development Secretary. The mission strongly supports this proposal. It is a system which has been found workable elsewhere, and it should prove well designed to assist the formulation and execution of general development plans in British Guiana, provided that: 1. There is a technically strong secretariat, 2. The Development Secretary has access to all plans and data relevant to development in all departments, 3. All development plans and projects go to the Development Secretary for technical, economic and financial review and approval before going to the Council, 4. The staff of the Development Secretary is under civil service regulations. 29 TABLE 3

RECOMMENDED FIVE-YEAR INVESTMENT PROGRAM 1954-58 (In dollars)

Major Sectors Agriculture ...... $24,487,500 Public Works ...... $ 5,450,000 Transport and Communications ...... 22,303,590 Industrial Credits ...... 1,500,000 Forestry ...... 2,280,000 Hydroelectric Power ...... 1,440,000 Social Welfare ...... 7,450,000 Surveys ...... 400,000 z

0 ..... 1954 .....1955 ..1956 1957 1958 Total I. Agriculture A. Projects 1. Corentyne Project* ...... 600,000 900,000 1,000,000 1,000,000 980,000 4,480,000 > 2. Boerasirie Project ...... 750,000 1,150,000 1,500,000 1,500,000 1,400,000 6,300,000 > 3. Land Settlement Programs 290,000 320,000 420,000 60,000 60,000 1,150,000 - 4. B. G. Rice Development Corporation a. Mahaicony .1,000,000 800,000 - - - 1,800,000 ¢ b. Rice Mill, Anna Regina 1,200,000 - - - - 1,200,000 ;. c. Rice Mill, Corentyne . 1,500,000 - - - - 1,500,000 d. Working Capital .500,000 - - _ 500,000 5. Milk Pasteurization Plant 241,241.000 - 241.000 6. Drainage Machinery Scheme.. 100,000 200,000 200,000 - - 500,000 7. Fisheries a. Inland ...... 37,000 7,000 7,000 7,000 7,000 65,000 f b. Sea ...... 70,000 10,000 10,000 5,000 5,000 100,000_ 8. Fish Market, Georgetown ...... 100,000 100,000 - - - 200,000 z

Total ...... 6,388,000 3,487,000 3,137,000 2,572,000 2,452,000 18,036,000 : B. Research and Credits 1. Agricultural Credits ...... 830,000 880,000 880,000 830,000 780,000 4,200,000 t 2. Soils Survey ...... 110,000 60,000 60,000 60,000 60,000 350,000 >

3. Major Agricultural Station 390,000 215,000 50,000 50,000 50,000 755,000 ' 4. Rice Experiment Station .. 100,000 .100,000 - - - 200,000 4 5. Hosararo Experiment Station 30,000 10,000 10,000 10,000 10,000 70,000 > 6. Potaro Mazaruni Experi- ment Station ...... - 45,000 5,000 5,000 5,000 60,000 t

7. Cocoa Plots ...... 12,000 12,000 12,000 12,000 12,000 60,000 ' 8. Livestock Stations a. St. Ignatius ...... 110,000 110,000 10,000 10,000 10,000 250,000 2 b. Ebini ...... 89,000 17,000 17,000 17,000 17,000 157,000 TABLE 3 RECOMMENDED FIVE-YEAR INVESTMENT PROGRAM-Continued 1954-58 (In dollars)

1954 1955 1956 1957 1958 Total I. Agriculture (Continued) C) B. Research and Credits (Continued) z 9. Additional Staff C a. Department of Agriculture 52,000 28,000 28,000 28,000 28,000 164,000 > b. Potaro-Mazaruni ...... 5,000 5,000 5,000 5,000 5,000 25,000 ° tQ c. Veterinary Service ...... 16,000 16,000 16,000 16,000 16,000 80,000 z d. Extension Service ...... 15,500 20,000 15,000 15,000 15,000 80,500 :

Total ...... 1,759,500 1,518,000 1,108,000 1,058,000 1,008,000 6,451,500 °

Total Agriculture ...... 8,147,500 5,005,000 4,245,000 3,630,000 3,460,000 24,487,500 > II. Transport and Communications A. Ports 1. Georgetown Wharf ...... - 600,000 300,000 - - 900,000 ¢ 2. Ferry Stellings, Demerara 200,000 - -- - 200,000 2 3. Ferry Stellings, Berbice ...... - 200,000 - - - 200,000 ;

Total ...... 200,000 800,000 300,000 - - 1,300,000 B. Shipping 1. New Ferry Boats ...... 500,000 500,000 - - - 1,000,000 > 2. Steamers ...... 180,590 - - - - 180,590 - 3. Containers and Platforms ...... 200,000 - - - - 200,000 >

Total ...... 880,590 500,000 - - - 1,380,590 z C. Railways .1,500,000 1,000,000 1,000,000 750,000 378,000 4,628,000 2 D. Roads 1. Stone Quarries ...... 500,000 - - 500,000 - 1,000,000 2. Main Road System ...... 1,250,000 1,500,000 1,500,000 1,750,000 1,750,000 7,750,000 3. Georgetown Through Road ...... 50,000 50,000 - - - 100,000 > 4. Interior Roads ...... 170,000 50,000 170,000 50,000 170,000 610,000 < 5. Feeder Roads ...... 40,000 40,000 40,000 40,000 40,000 200,000 > 6. Road Surveys ...... - 30,000 - 25,000 - 55,000 >

Total ...... 2,010,000 1,670,000 1,710,000 2,365,000 1,960,000 9,715,000 > E. Civil Aviation-Airstrips.30,000 30,000 60,000 30,000 30,000 180,000 k F. Post and Telephone > 1. Postal.. 60,000 60,000 60,000 60,000 60,000 300,000 ` 2. Telecommunications .800,000 1,000,000 1,000,000 1,000,000 1,000,000 4,800,000 z m Total .860,000 1,060,000 1,060,000 1,060,000 1,060,000 5,100,000 :

Total Transport and Communications 5,480,590 5,060,000 4,130,000 4,205,000 3,428,000 22,303,590 TABLE 3 RECOMMENDED FIVE-YEAR INVESTMENT PROGRAM-Continued 1954-58 (In dollars)

1954 1955 1956 1957 1958 Total II1. Forestry 1. Additional Funds to Department of Forestry for a. Administration ...... 70,000 70,000 70,000 70,000 70,000 350,000 ; b. Timber Appraisals ...... 50,000 50,000 50,000 50,000 50,000 250,000 z :o c. Silvicultural Timber Stand Improvement and Planta- tions ...... 54,000 54,000 54,000 54,000 54,000 270,000 d. Training Program ...... 15,000 15,000 5,000 5,000 5,000 45,000 O 2. Credits to Sawmill and Log- ging Industry ...... 200,000 150,000 100,000 100,000 100,000 650,000 k 3. Credit to Lumber Enterprises.... 300,000 200,000 100,000 - - 600,000 2 4. Promotion of Export and :l Use of Domestic Woods ...... 10,000 15,000 10,000 10,000 10,000 55,000 ¢ 5. Services of Logging Engineer and Export Inspection ...... 19,000 19,000 18,000 2,000 2,000 60,000 2

Total Forestry ...... 718,000 573,000 407,000 291,000 291,000 2,280,000 IV. Social Welfare 1. Schools ...... 175,000 175,000 175,000 175,000 175,000 875,000 > 2. Housing, Rural Teachers ...... 20,000 20,000 20,000 20,000 20,000 100,000 > 3. Water Supply-Artesian Wells.. 75,000 75,000 75,000 75,000 75,000 375,000 > 4. Housing, Public Officers ...... 100,000 - - - - 100,000 c 5. Rural and Urban Housing...... 1,000,000 1,000,000 1,000,000 1,500,000 1,500,000 6,000,000 d

Total Social Welfare .1,370,000 1,270,000 1,270,000 1,770,000 1,770,000 7,450,000 > V. Public Works-Not Included Elsewhere 1. Sea Defenses .500,000 500,000 500,000 500,000 500,000 2,500,000 " 2. Annual Drainage and Irri- CJ3 gation Works ...... 100,000 100,000 100,000 100,000 100,000 500,000 3. Maintenance ...... 450,000 500,000 500,000 500,000 500,000 2,450,000 ;

Total Public Works ...... 1,050,000 1,100,000 1,100,000 1,100,000 1,100,000 5,450,000 > VI. Industry 1. Credits and Technical Assist- ance to Industries .100,000 200,000 300,000 400,000 500,000 1,500,000 > TABLE 3

RECOMMENDED FIVE-YEAR INVESTMENT PROGRAM-Continlued 1954-58 (In dollars)

1954 1955 1956 1957 1958 Total VII. Surveys 1. Geologic, Aerial and Other Surveys ...... 60,000 60,000 60,000 60,000 60,000 300,000 ; 2. Hydrographic Survey, Coren- tyne ...... 25,000 25,000 - - - 50,000 ° 3. Hydraulic Model Research ...... 25,000 25,000 - - - 50,000 ¢

Total Surveys ...... 110,000 110,000 60,000 60,000 60,000 400,000 3 VIII. Power 1. Tumatumari Project ...... 720,000 720,000 - - - 1,440,000 > IX. Credit Corporation 1. Organizational and Operat- ing Expenses ...... 200,000 200,000 100,000 50,000 50,000 600,000 <

GRAND TOTAL ...... 17,896,090 14,238,000 11,612,000 11,506,000 10,659,000 65,911,090 2

* Does not include road costs. THE RECOMMENDED FIVE-YEAR DEVELOPMENT PROGRAM

The three principal functions of the Development Secretary and his staff would be to: 1. Prepare, in consultation with the operating departments, an annual development budget to form part of the country's over-all budget for submission to the Council and the House of Assembly, 2. Coordinate the work of all government departments in the planning of investment projects, 3. Recommend to the Council measures to expedite the completion of all projects under consideration or under way.

A small but highly competent secretariat is needed. A staff of not more than six or seven professionals, including one or two general economists, an engineer, an agricultural economist and a statistician should suffice.

B. BRITISH GUIANA CREDIT CORPORATION

To stimulate new private investment, the mission proposes a very substantial expansion of credits for agriculture, industry, forestry, fisheries, and rural and urban housing. There is at present no private institution which grants medium- or long-term credits, except mortgages, nor is there any public institution capable of administering such credits. The present agricultural cooperative banks are small and their credits largely take the form of mortgage rather than productive credits. The mission proposes the formation by the government of a British Guiana Credit Corporation to grant credits to private enterprise or to new enterprises which would be under state control until they could be transferred, in part or in whole, to private enterprise. The mission, in its recommended program (Table 3), proposed credits of approximately $5.4 million for agriculture, industry and forestry, and a further $6 million for urban and rural housing. The total of $11.4 million would amount to about 20% of the whole investment program. All of these funds should be channeled through the proposed Credit Corporation. The Corporation would require government funds of approximately $12 million (including organizational and operating expenses) for the five-year period, with an initial capi- talization of approximately $3 million. The mission believes that 37 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA at least $2 million of the $12 million credits would be of a short-term nature and repayable within the five-year period. The functions of the Corporation would be to: 1. Take over all existing credit activities of the government, including the proposed Agricultural Bank as well as loans to private enterprises already outstanding but excluding the operations of the British Guiana Rice Development Com- pany, 2. Administer small agricultural credits through an expanded and strengthened system of agricultural cooperative banks, to be closely supervised by the Corporation, 3. Administer, extend, and supervise credits required for land settlement programs, in close cooperation with the Depart- ment of Agriculture, which would carry out the technical planning and execution of the program, 4. Establish such additional medium- and long-term credits as are needed for other agricultural enterprises, 5. Make loans to, and buy shares or debentures of either new or existing industries or, where necessary, establish new industries, including saw mills and logging operations. 6. Promote useful innovations in industry and forestry through its own technical staff or through outside consultants. 7. Promote the inflow of private foreign capital for investment in agriculture, mining, industry and forestry, 8. Provide credits for private or mixed private and public investments in rural and urban housing. The Corporation would work primarily to stimulate private investment by local and foreign capital. It should attempt to attract the interest of such investment agencies as the Colonial Development Corporation, the newly established Commonwealth Development Com- pany Limited, and Barclays Overseas Development Corporation, which may be able to assist the Bank in financing sound development projects. The Corporation's technical staff need not be large, but it should have freedom to hire overseas technicians and consultants in cases where the supply of local technicians is inadequate in quality or quantity. The Corporation should rely, however, for the most part, on existing government staff for technical advice and assistance. 38 THE RECOMMENDED FIVE-YEAR DEVELOPMENT PROGRAM

The Corporation's general policy would be determined by the government. Once this policy is determined, however, the Corporation's operations should be safeguarded from political pressures.

IV. Development Budget While the present operating budget of British Guiana is well arranged, expenditures for development purposes are not shown separately in such a manner as to aid the government in development programming. At present development expenditures appear in many separate categories. They occur under the: 1. Operating budgets of the government departments, 2. Extraordinary budgets of the departments, 3. Colonial Development and Welfare expenditures, annexed to the main budget, 4. Annexed budgets of expenditures using cash reserves ("surplus" ), 5. Annexed budgets of expenditures from loan funds for public works, 6. Special annexed maintenance budgets. These expenditures, which include welfare grants, are quite variable and range from drainage and irrigation schemes through public buildings to nurses' training schemes. The mission suggests that all development projects be placed in a single budget. At best, any classification of "development projects" must be arbitrary, but it should include current expenditures for strictly welfare purposes (e.g. training of girl guides), expenditures for police and justice, and the capital cost of public buildings, except where they are of a clearly developmental nature such as an agricultural experimental station. The classification should probably include the recurrent costs of development projects undertaken by a government department until the project has been completed, when the recurrent costs should be transferred to the regular departmental budget. The purpose of the suggestion is to bring together in clear fashion all forms of capital expenditures for development projects under a single head so that the Development Secretary will be in a posi- 39 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA tion to prepare an annual development budget in close cooperation with the Treasury. V. The Interior The government has under consideration a proposal for a special commission to promote the development of the interior. A fairly substantial share of the proposed development program, on the basis of comparative population, is devoted to the interior, including agricultural research and experimentation, geologic and air surveys, interior main and feeder roads, air transportation and air strips, the entire forestry and mining program, the proposed stone quarries, the major part of the beef cattle program, the Tumatumari power project and parts of the telecommunications program. They are intended to promote further development of the interior in the next five years and, through research and surveys, to prepare the way for its continued development in later stages (e.g. the road link to Rupununi, proposed for construction after 1958). While the mission believes that the Development Secretary and the Credit Corporation should make special efforts to assure a coordinated program for the development of the interior, the program can be carried out directly by government departments, as well as by private firms and individuals, and the mission sees no need for a special commission for the interior. The development program for the area should be regarded by the government as an integral part of the over-all program. A special commission would serve only to emphasize the 'conflicting rather than the common interests of "the Seawall" and "the Bush."

40 CHAPTER 4

Financing the Development Program

In appraising the financial resources available for development expenditures in the public sector, and for financial and technical services to the private sector of the economy, the mission has noted that: 1. From the end of 1948 to the end of 1953, British Guiana will have invested approximately $33 million in the public sector for development purposes. Much of this sum has been invested in projects which will continue beyond 1953, and part of the funds required have already been committed for this purpose. 2. The government's revenues, over and above debt service payments and the operating losses on state enterprises, have increased in the same period from $17.9 million to an estimated $27.8 million, which should permit increased development expenditures directly from revenues. 3. The outlook for the maintenance of at least the existing level of revenues is good, provided that sound financial policies are continued and that an atmosphere favorable to private investment is maintained. A continuing development program should raise the national income and, hence, government revenues. 4. Domestic institutional savings, now largely invested outside the colony, can be expected to provide substantial funds for internal government bond issues. In Table 4 are presented the sources of funds on which the gov- emnment should be able to draw over the next five years. The program for financing is, like the investment program itself, intended to be quite flexible, so that the government can adjust its investment projects to its revenues, cash reserves and loan prospects from year to year. 41 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

It is suggested that funds for financing development should be employed approximately in the following order of priority: 1. Current annual revenues, including especially increments of revenue, 2. Savings made by (a) curtailing or withdrawing subsidies and (b) reducing and eventually eliminating the operating losses of state enterprises, 3. Colonial Development and Welfare grants, 4. Loan funds not yet disbursed, 5. Existing cash reserves in excess of a prudent minimum, 6. Internal loans, 7. External loans. Current Revenues. The present proportion of government revenues which is devoted to productive investment (including funds from previous budgetary surpluses) is about 10%o. The mission believes it essential to the future growth of the economy that the government itself devote as large a proportion as possible of its current revenues to directly productive purposes. To this end, it is suggested that the government endeavor, over the next five years, to raise this proportion to 20-25%o. At present about $3.5 million of government revenue is devoted annually to development and to maintenance of sea defenses and irrigation works. Since the government has had consistent budget surpluses for several years, it is reasonable to assume that not less than $4 million a year will be available during the next two fiscal years and $5 million a year thereafter, provided that current expenditures for social welfare and other purposes are held at approximately their present level. The further increases in government revenues which normally accompany a rising national income may provide additional development funds. The present combined annual cost of subsidies and of operating losses of the state enterprises is $2.3 million a year, or 8% of the 1953 budget. The proposed five-year investment program should reduce and eventually eliminate operating losses. The elimination of food subsidies, recommended in the agricultural development program, would serve the double purpose of aiding both agriculture and the government's revenues. Such subsidies, in effect, add to the amount required to be raised by future loans. 42 FINANCING THE DEVELOPMENT PROGRAM

Development Grants. Colonial Development and Welfare grants already allocated to British Guiana by the Government of the United Kingdom for expenditure in 1954, 1955 and 1956, total $6.5 million. It is generally presumed that there will be a continuation of the Colonial Development and Welfare program in some form beyond its present date of expiry in 1956. Although there is no assurance that such grants will be available thereafter, the mission has assumed their continuance at the present rate.

TABLE 4 SOURCES OF FUNDS FOR DEVELOPMENT 1954-1958 (in million dollars) 1. From Government Funds and Revenues a. Funds from annual revenues ...... $23.0 b. Additional funds from annual revenues 1. Arising from savings on state subsidies ...... 4.0 2. Arising from savings on operating losses of state enterprises ...... 3.5 c. Loan funds not disbursed, end of 1953 ...... 5.3 d. Estimated surpluses, end of 1953 ...... 3.0 e. Repayment of Agricultural Bank and other state loans ...... 1.0 f. Other credits repayable during period ...... 2.0

$41.8 II. From Colonial Development and Welfare Grants a. Allocated for 1954-56 ...... $ 6.6 b. Estimated possible 1957-58 ...... 4.5

$11.1 III. From New Loans ...... $13.1

Grand Total .$66.0

Other Funds. Additional funds will be available from the public loan issue of 1951, which will not have been fully disbursed by the end of 1953, as well as the CDC loan of 1953. The existing capital 43 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA of the Agriculture Bank and repayable government loans to rice millers and small industries are additional sources of revolving funds. No estimate has been made of the potential yield of the proposed public sale of the government-held shares of the newly formed British Guiana Rice Development Company, nor of sales of the government stock of rice bags. These may provide additional revenue for development. Cash Reserves. Accumulated cash reserves from past budget surpluses, together with funds voted for projects to be undertaken after 1953 amount to about $6 million or about $3 million more than the $3 million minimum cash reserves that the government feels it prudent to carry. The government should continue to adhere strictly, as it has done in the past, to the principle that these funds should only be used for urgent productive projects which cannot be financed from current revenues. Loan Funds. The mission estimates that about $13 million in additional loan funds may be required for expenditure during the next five years, to finance that part of the development program which cannot be financed directly from government revenues and cash balances (including unutilized loan funds) or from external grants. Included in this amount is a CDC loan for the Tumatumari power project which is not expected to require a colonial government guarantee. Circumstances may arise during the next five years which will make it necessary for the government to borrow more than this sum, because of unexpected changes in budgetary receipts or because of the need to protect its cash reserves. The mission assumes, however, that government revenues over the five years will increase, with due allowance for price changes, at roughly the same rate as the national income, thus making more revenue available for development and reducing further the need for borrowing. One reason for the mission's emphasis on the use of other than loan funds in the coming five years is the need to conserve the government's borrowing capacity for the additional large-scale irrigation and drainage schemes which will be needed after 1958. Internal Borrowing. The mission believes that most new loans needed over the next five years can be raised internally. The govern- 44 FINANCING THE DEVELOPMENT PROGRAM ment may, however, need to take up the remaining authorized London issue of 1951 amounting to $3.6 million. The use of internal sources of borrowing would have two advantages: 1. Domestic savings can, provided that well-selected development projects are chosen, be used to increase directly the colony's productive capacity, 2. The problem of British Guiana's competition with other colonies in the controlled London market can be avoided. In addition, it is possible that internal borrowing would result in somewhat lower service charges than London issues as well as lower costs of issue. Further, local institutions should be able to provide a fairly even flow of funds, to meet the financial requirements of the government. The British Guiana Treasury has no breakdown of holdings of internally issued government bonds. The best information available to the mission indicates that, very roughly, 40%o is held by institutions, mainly insurance companies, and by sinking funds. The remainder appears to be held by individuals, since other financial institutions in the colony apparently hold few, if any, of such issues. The mission believes that funds potentially available for subscrip- tion to internal loan issues will be sufficient to meet most government loan needs. The main outlets for additional issues appear to be the Post Office Savings Bank, which holds almost no local government bonds, the Sugar Stabilization Fund, the commercial banks and insurance companies, and private individuals. To tap these sources effectively will require skilled management and persuasion as well as appropriate types of issues, including short- to medium-term securities which would have to be periodically refunded. Post Office Savings Bank. One of the most effective and efficient institutions in British Guiana is the Post Office Savings Bank. The Bank, at the end of 1952, held 109,617 individual savings accounts with a total of $16 million in deposits, an increase of $1.5 million over the preceding year. Although existing regulations provide that up to one third of the total deposits may be invested locally, the funds of the Bank are in. vested, except for very small holdings of British Guiana securities, in issues of the Dominions and of other colonies. Whatever grounds 45 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA may have existed for this practice in the past, it seems anomalous at the present stage that the development of other parts of the Com- monwealth should apparently have a prior claim on British Guiana's savings.

TABLE 5 POTENTIAL SOURCES OF FUNDS FOR INTERNAL LOAN ISSUES 1954-1958 (milion dollars) Issues of 3-5 Over Years 5 Years 1. Post Office Savings Bank ...... - 7.5 2. Sugar Stabilization Fund ...... 2.5 - 3. Insurance companies ...... 5 .5 4. Commercial banks ...... 1.0 1.0 5. Other institutions and private investors ...... 1.0 1.0

5.0 10.0

The mission recommends that, over the next few years, additions to the savings deposits in the Bank be invested in British Guiana government bonds until one third of the Bank's assets consist of such securities. The government may, however, wish to consider a variation of this course in the form of reciprocal investment in the securities of other British Caribbean governments. The mission does not believe that there is any immediate need for the conversion of any existing issues held by the Bank into local securities. Such securities are now selling in London below par. Should their prices improve, conversion may become desirable. The mission believes that a national savings campaign would help to increase savings. In addition, to improve the usefulness of the Post Office Savings Bank, the mission suggests that: 1. The minimum deposit balance be raised to $5, and postal savings stamps be issued for smaller amounts, 2. The maximum balance be raised from $8,000 to $14,400 (£3,000), the corresponding limit in the United Kingdom, 3. Earnings of the Bank arising from the difference between the return on its investments and interest paid on deposits 46 FINANCING THE DEVELOPMENT PROGRAM

(2.4%) be retained by the Bank until the nominal deficit on capital account, due to the fall in market prices of Com- monwealth securities, is covered. Sugar Price Stabilization Fund. The Sugar Price Stabilization Fund amounted to $6.66 million at the end of 1952, an increase of $1.5 million during the year. The Fund is directly administered by the British Guiana Treasury. It can be reasonably expected that this Fund will continue to grow over the next two or three years by an amount in excess of a million dollars a year. The Fund is now invested in Commonwealth issues, other than those of British Guiana. The mission believes that up to $2.5 million could be made available over the next few years for investment in short-term securities of the local government. Such funds might be most appropriately used for short-term agricultural credits of the Credit Corporation. A similar use of funds is being undertaken in Jamaica. Insurance Companies. Local insurance companies, which probably hold about $2.8 million in British Guiana securities, are the largest institutional holders. It is believed that they should be able to absorb another million dollars over the next five years. Commercial Banks. The commercial banks at present hold no British Guiana government securities, and, indeed, their deposits are mainly invested outside the colony. The mission believes that, given the opportunity, they would be both willing and able to play a greater role in stimulating the economic growth of the country, which should eventually be of direct benefit to their own operations. The mission believes that the commercial banks might be willing to hold government securities of an average maturity of not over five years, to an amount up to 10%o of their deposits, or perhaps $2 million. Other Sources. Since apparently as much as 60%o of internal government bond issues are in the hands of other than institutional holders, there appears to be an established local bond market, although it is not large. The mission believes that up to $2 million might be tapped from this source, and further amounts may be diverted from savings deposits in the postal and commercial banks by the prospect of higher yields on government bonds. The willingness of private individuals and institutions to direct a greater proportion of their investments into British Guiana gov- 47 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA ernment securities will depend, of course, on the extent to which they feel confident that the government will continue to maintain its present standards of prudence and foresight in the use of public funds.

48 CHAPTER 5 The Agricultural Sector

I. The Problem The increased rate of growth of the rural population has brought additional complexities into the planning of agricultural development in British Guiana. The expanding rural working population of the postwar period has found employment on small farms in the coastal zone, in rural industries or by migration to urban areas. In consequence of pressure on the land, the majority of existing farms are too small to provide full employment and maximum productivity. Unless measures are taken to reclaim additional land in the coastal zone, there will be an inevitable decline in the rural standard of living and further underemployment of the rural labor force. The dual agricultural economy of the colony presents a special problem. On the one band there are the sugar estates, cultivated by wage labor and exporting 90% of their product. With the fullest use of the present equipment, the industry can perhaps increase production over the next five years .by 10%, to about 275,000 tons. While the sugar producers expect to carry out this expansion, such an increase in production is not likely to provide much, if any, increase in employment. Any further expansion is unlikely because of the very high costs for new sugar factories and reclamation of new land. On the other hand there are the many small-scale farm owners or tenants, mainly East Indians, who are chiefly engaged in growing rice. The mission believes that the most promising direction for future agricultural development, intended to increase and diversify production, lies in the extension and improvement of small-scale farming. The basic problem in the development of such farming in the coastal area is that, to reclaim land, costly long-term drainage and irrigation programs are required. At present only 283,000 acres 49 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

(7.5%o) of the coastal zone are under cultivation. It is estimated that over the next 15 to 20 years major drainage and irrigation projects can reclaim perhaps 300,000 to 400,000 acres more. Still further acreage ultimately available for cultivation in the coastal zone and on the river banks to the south may amount to some 650,000 acres, though such estimates are highly uncertain. Outside the immediate coastal areas, the most important source of new land lies in the riverain lands, now almost completely unused except for some shifting cultivation. Their clearance would be expensive, but drainage would be cheap and reclamation costs would be approximately the same as on the backlands along the coast. Agricultural possibilities may be superior to those of the coastal backlands. Besides the staple rice and root crops, dairy farming and perennial crops such as coconuts, fruit and cacao may be suitable. It is here that diversification of production can probably best take place. The extensive land areas in the Northwest District and in the interior await exploration and scientific assessment before plans for their cultivation can be formulated. The Rupununi and Intermediate savannahs, however, offer prospects for an expansion in beef cattle production over the next five years. There are thus both short-range and long-range problems of agricultural development. The most urgent problem for the next five years will be to settle new farmers on farms of appropriate size and to begin a program to enlarge those existing farms which are now too small to be economical. The scheduled government land reclamation projects, discussed below, will go far toward meeting this need. Meanwhile, looking to the future reclamation of all potentially cultivable land on the coast and river banks and the formulation of a development program for the interior, there is a major task to be done now. These developments must be preceded, during the coming five years, by comprehensive study of the technical, engineering and cost aspects of the drainage and irrigation projects needed after 1958 and by basic research on the soils and crop potentialities of the interior and Northwest Districts. Other research is needed for all regions to improve techniques and diversify production in order to reduce British Guiana's dependence upon two principal crops. 50 THE AGRICULTURAL SECTOR

II. The Recommended Program The mission's proposed investment program calls for an expenditure by the government of $24.4 million over the next five years for the expansion and improvement of agriculture. Incorporated into this program are three existing government projects for land reclamation, which are estimated to cost $12.5 million to complete by 1958. The first of these is the Boerasirie project, where new dams and drainage works are expected to bring into productive use about 40,000 acres of land now completely undeveloped. The second provides for drainage and irrigation works in Blocks I and II of the Corentyne coast, in addition to the works in Block III now nearing completion. The third is a 6,000-acre expansion of the Mahaicony-Abary Scheme, undertaken at Onverwagt, as a part of the mechanized rice production project; this scheme has now been transferred to a government-owned joint-stock company, but with the expectation that shares will be sold to private investors. Together, these three projects will add about 67,000 acres (23%) to the cultivated area in the coastal zone in the next five years. This will provide up to 45,000 acres needed for settling some 3,000 new farmers expected by 1958, and additional acreage to start enlarging uneconomical holdings of less than 10 acres. The projected reclamation works and the suggested pilot land 'settlement program within the five-year period represent more than half the total cost of the proposed agricultural development program. The mission considers it urgent to take steps both to increase and to diversify production. To maintain the present satisfactory level of consumption in the face of a fast-growing population, the program aims to increase the domestic output of the leading food crops and to achieve a somewhat better dietary balance through a more rapid rise in meat and fish production. As far as the two principal crops are concerned, the five-year target calls for exports of rice to increase from 28,000 tons to 68,000 tons, and sugar exports to rise from 234,000 to about 260,000 tons. To reach these goals will require not only the completion of present drainage and irrigation schemes, but also adequate technical preparation for further land development. It will also demand an effective land settlement program, additional credit and research facilities, and specific adjustments in agricultural and land tenure policies. 51 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The broad aim should be to achieve full employment of the rural population at a rewarding level of production. Long-range agricultural policy should be directed towards increasing the number of independent farmers, on farms of a size capable of providing an adequate standard of living. Under e*xisting conditions the mission believes that such a policy will be of greater economic value than large- scale mechanization schemes-particularly for rice cultivation, in which local mechanization has already shown returns inferior to those from small-scale farming-and suggests that further mechanization, other than for sugar cane, should be limited to machinery pools or similar aids to the efficiency of independent farmers. Where feasible, moreover, government policy should encourage small farm ownership rather than perpetuation of tenancy, especially in public settlement schemes.

III. Principal Recommendations The mission recognizes that practical improvement of agriculture is not to be accomplished solely by the establishment of a few broad policies, but to a large extent by attention to the specific details upon which successful farming depends. Many suggestions are offered in the technical report (II A) on Agriculture, for the improvement of individual crops, water control, credit operations, marketing, research and extension. The principal recommendations are those listed below: A. RECLAMATION PROJECTS 1. Every effort should be made to complete the proposed irrigation and drainage schemes in the Boerasirie and Coren- tyne systems as rapidly as technically feasible in order to bring additional acreage under cultivation in the coastal zone. 2. Engineering studies for future reclamation projects to be undertaken after 1958 should begin promptly in view of the complex character of such studies. The most promising areas for future schemes appear to be in Berbice, south of Providence, embracing about 80,000 acres, and south of Crabwood Creek, with a further 50,000 acres. Additional study may also indicate that an extension of the Boerasirie scheme south of the Bonasika and south of Wales would be feasible. 52 THE AGRICULTURAL SECTOR

3. For the next five years agricultural development should center on that part of the coastal strip now under rice, sugar and coconut cultivation, together with an extension of rice growing in the coastal backlands and the reclamation of riverain lands for mixed farming. Extension of cattle ranching in the interior should take place in the Ebini downs and in the Rupununi; government technical and financial assistance will be needed to increase beef cattle production. in these areas.

B. LAND SETTLEMENT AND TENURE 4. Legislation relating to ownership and tenure of unused backlands and riverain lands should be thoroughly reviewed; such reclaimable land should be gradually brought into productive use, if necessary by appropriate legal measures. 5. A comprehensive land settlement program should be drawn up for the Boerasirie and Corentyne areas, with emphasis upon mixed farms of appropriate size; provision should be made for land purchase and clearance, roads, housing, farm implements and draft animals as needed. 6. Practical information for this purpose should be obtained by establishing pilot settlement projects: a large-scale project on the riverain lands south of Lookout on the Essequibo River, a smaller one south of Georgetown, and others for larger farms (up to 100 acres) on the Corentyne backlands. 7. Land-use and soil surveys should be started in the coastal and riverain areas to prepare for additional drainage, irrigation and settlement projects, and in the interior to select areas suitable for later agricultural development. 8. Continuous study should be made of new coastal reclamation projects in the "Hutchinson" program, with a view to putting them into effect after 1958; the mission believes that five years of engineering study will be needed before additional projects can be undertaken on a sound basis.

C. AGRICULTURAL CREDIT 9. An agricultural credit department should be established within the proposed British Guiana Credit Corporation 53 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

(Chapter 3) to supervise or extend both short- and long-term credits for such purposes as land settlement, rice mills, coconut planting, copra driers, livestock and fisheries. 10. To permit successful continuance of a farm credit structure at reasonable interest rates, policy on overdue repayment or default should be made firmer and more effective than at present.

D. PROCESSING AND MARKETING 11. Price controls and subsidies on imported foodstuffs should be removed as rapidly as circumstances permit, in order to encourage production and marketing of domestic foods. 12. Government rice mills and driers should be built, as now planned, in the Corentyne area and at Anna Regina; these should be regarded both as an addition to regional milling capacity and as a spur to modernization of the private mills through credits made available for the purpose. 13. The Georgetown abattoir should be modernized. 14. A milk pasteurization plant should be installed at George- town. 15. An ice factory and cold storage plant should be established in Georgetown for better handling and marketing of meat and fish.

E. RESEARCH ANND EXTENSION SERVICES 16. Existing agricultural experiment stations should be strengthened and additional stations established in the coastal belt, the northwest and the interior. The network should include: a. The major agricultural station on the coast, as planned. b. A rice division at the Central Agricultural Station. c. An expanded station at Hosaroro, in the Northwest District. d. A new station at Potaro. e. Cacao trial plots at the Potaro-Mazaruni station. f. Improved livestock stations at St. Ignatius and Ebini, in the Rupununi and Intermediate savannahs. g. A pilot project for riverain land clearance. 54 THE AGRICULTURAL SECTOR

17. Research programs, at appropriate stations, should include studies of diversified crops, improved rice yields, rice varieties and other crops suitable for spring farming, fertilization, crop rotation, plant disease, technical and economic problems of mechanized farming, savannah cattle ranching, breeding of beef and dairy cattle for local conditions, and fish culture. 18. The agricultural extension service should be broadened for more effective transmission of research results and improved techniques to the farmers themselves.

55 CHAPTER 6

The Transport and Communications Sector

I. The Problem The principal geographical factors that influence the development of transport and communications within the colony are: 1. The division of the narrow coastal belt into four distinct sections by the three main rivers. 2. The dispersion of the population of the interior in a few centers on navigable river stretches and in scattered small settlements in the remote interior. Since bridging the estuaries of the coast is impracticable at present, measures to facilitate intercommunication between the four coastal sections must be directed towards better ferry and transshipment service. To meet the needs of the sparse population of the interior, increased attention must be given to the development of regular and cheap air transport, already admirably provided on a small scale, supplemented by cheap but rough surface transport, which cannot at present hope to tap sufficient traffic to warrant heavy expenditures on modern road construction. Depression, war and postwar conditions made it difficult and costly for the colony to procure adequate transport equipment. In consequence both transport and communications are suffering from many years of accumulated arrears of maintenance, renewals and improvement, as well as a shortage of experienced planning and executive personnel and of local skilled labor familiar with modern techniques. Even under these numerous handicaps, there has been an improvement in this sector in recent years, and the mission believes that, with a well-devised program, the colony should be able, in five years, to develop a transport and communications system able to serve the economy efficiently and to promote its continued growth. 56 THE TRANSPORT AND COMMUNICATIONS SECTOR

II. The Recommended Program In the general investment program, agriculture necessarily occupies first place. Because transport and communications have been relatively neglected in the past, the recommended investment program in this sector ($22.3 million) is second only to agriculture in size and scope. By far the largest share of the recommended investment (60%) is for a trunk road program. In addition, there is a substantial recommended program for telecommunications, the railway, ports and shipping, and smaller amounts for the postal and civil aviation services. In a program of this magnitude, planning, construction and operations must be carried out with maximum efficiency and economy. The services of overseas specialists will be required to introduce modern methods of planning and the newest equipment devices, and experienced instructors will be needed to train local staff in the building, use and upkeep of the works, installations, plant and materials. In the revenue-earning sectors of transport, only the port services show operating profits. The railway and steamer services operate at heavy losses because of obsolete equipment. The mission believes that, with efficiently used modern equipment, the deficits can be rapidly reduced and, by the end of the five-year program, altogether eliminated. Posts and telecommunications also operate at a nominal loss, mainly because of the large proportion of free services rendered to the government. While the mission does not recommend any change in existing practices, efforts should be made to see that use of these services bv government staff is kept within reasonable limits. Over half of the recommended program would be carried out by the Public Works Department, which would be responsible for road construction but would not itself operate or control the traffic. Pres- ent traffic is of low density but may be expected to grow rapidly as the colony develops. It now operates at high cost wvith poorly maintained and overloaded vehicles. As a modern road system develops, efficiency, safety and economy must of necessity go hand in hand. To attain this, adequate government control, supervision and inspection will be needed. 57 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

III. The Railway The transport problem of most immediate urgency facing the government is to decide on the future of the railway system. The government particularly requested the mission to consider whether the railway, in view of its short haul and heavy operating losses, should be abandoned in favor of road transport. After a study of the complex factors involved, the mission concluded that the railway should be retained as essential to the colony's economy, but, to enable the railway to provide efficient service, its equipment and operations should be overhauled and modernized. The mission bases its recommendations on the following factors: 1. The extra capital cost of a construction program for roads adequate to carry the railway's present and prospective traffic would amount to at least $4.6 million more than the cost of rehabilitating the railway. In addition, operating losses of the railway during the five years required for a road construction program, losses which can be reduced by modernization, would amount to a further $1.4 million. An additional large capital expenditure, which is difficult to estimate, would be required for imports of lorries, passenger cars and buses, to be substituted for railway passenger and freight cars, 2. Much of the traffic carried, such as passenger traffic at certain daily and seasonal peak periods, and bulk goods traffic such as sugar and rice, is eminently suited to railway operations. Goods traffic will undoubtedly increase as improved warehousing and wharves and better steamer service are provided by other parts of the transport program, 3. Present traffic and freight rates are low and could hardly be lower in any road transport system, however efficient, 4. The short length of the railway permits simple management and operation. Improvement of the railway equipment should provide further simplification in administration, as well as greatly reduced operating expenditures.

The program recommended by the mission to rehabilitate the railway calls for an expenditure of $4,378,000 over the next five years, slightly over half of which would be for new rolling stock, including 58 THE TRANSPORT AND COMMUNICATIONS SECTOR five diesel locomotives, three passenger railcars and trailers, and additional passenger coaches and bogie wagons. The remainder would be for ballasting, relaying of track, crossing loops and bridges. Some expenditures will also be required for buildings and the central workshops. IV. Steamers and Ferries The steamer and ferry services have, like the railways, suffered from long neglect of maintenance and, even more, of renewals. The result has been inadequate service and heavy operating losses. To reduce and eventually to eliminate such losses, the mission recommends an investment program amounting to about $1,380,000, to be carried out in 1954 and 1955, to provide: 1. Three new ferry boats, in addition to the two new steamers now on order in London, and 2. Suitable containers and platforms for transshipment of goods. The' two obsolete ferry boats and the three or four obsolete steamers should be withdrawn from service, as the cost of their upkeep and maintenance is excessive. With a well-equipped and capably managed fleet giving faster and better service, operating costs should decline and revenues should increase. Under this program the mission believes the deficits should be eliminated within five years and the services should be able to take care of a growing passenger and freight traffic. The mission believes that internal road-rail-water transport can also be greatly expedited by the use of suitable standardized containers for quick transfer between warehouses and lorries, steamers, ferries or trains, a method particularly adapted to British Guiana with its many transshipment points.

V. Ports The colony's main port of Georgetown operates satisfactorily. Its dues and charges are reasonable and an operating surplus accrues to the Treasury. The main additions and improvements to the port needed to improve service and to tie in with the recommended program for steamers and ferries are: 1. A new wharf and two ferry boat berths at Georgetown and Vreed-en-Hoop, 59 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

2. An additional ferry boat berth at New Amsterdam and a further ferry berth at Rosignol, 3. Separate transit and storage sheds at Georgetown, 4. Establishment, by legislation, of a river front line at George- town to which all layouts, rebuilding or extension of existing wharves and berths should conform, 5. Abandonment of the government dry dock in the interior, opposite Bartica, and the use instead of the existing private facilities at Georgetown. The total cost of the program for wharves and berths would be about $1,300,000.

VI. Roads The mission found universal agreement in the colony on the urgent need for a greatly improved road system. The present inadequate road system is poorly constructed and maintained and results in costly transport which hinders development. This is undoubtedly the most important problem in the field of transport. To solve it satisfactorily will require large capital investment and careful planning over a number of years to come. In the coastal area, the present trunk road system can, with some extensions, form the basis of a greatly improved network that will serve the needs of the colony in that area for the indefinite future. The existing roads are generally well situated and their alignments will need only small adjustments. The main task will be to provide a strong base and a wear-resisting surface, with efficient drainage, able to carry the motor traffic which can be expected to develop. The colony has suitable stone for roadbuilding at accessible sites. The first task in a road program will be to open quarries and to install a modern quarrying and crushing plant for the supply of adequate quantities of stone. The recommended main road program, which takes account of the heaviest areas of traffic, and of the government's preliminary program, provides for the rebuilding of the following trunk and branch roads on the coast: 1. Georgetown-Atkinson ...... 22 miles 2. Georgetown-Blairmont ...... 66 3. Aurora-Charity ...... 38 60 THE TRANSPORT AND COMMUNICATIONS SECTOR

4. Vreed-en-Hoop-Maripa ...... 28 " 5. Vreed-en-Hoop-Vreedenstein ...... 15 " 6. New Amsterdam-Juliansburg ...... 17 7. Leguan and Wakenaam Islands . . 27 8. Branch roads of road 2, above ...... 19 9. New Amsterdam-NewForest-and to Anna Clementia ...... 16 10. Other short branch roads ...... 20 The total estimated cost of reconstructing these 268 miles of coastal road is about $11,680,000, of which $3,930,000 can be deferred until after 1958. An additional $1,000,000 would be required for two stone quarries and crushing plants. For interior roads, the mission recommends a survey of the possibility and costs of a road connecting Atkinson with Mackenzie, a road from Maripa to a point opposite Bartica, and a road connection with Rupununi. It is assumed that these roads would be constructed after 1958. The Bartica-Potaro road requires improvements during the next five years. The mission also recommends the extension of the present feeder road program in the Rupununi savannahs during this period. The total cost of the interior road program, including projected surveys, is estimated at $865,000.

VII. Air Transport Surface transport into the interior through dense jungle, across many streams and along primitive tracks or trails, is difficult, slow and costly. The distances are long and intermediate traffic-producing settlements are almost nonexistent. Fortunately, an air transport service has been developed which now provides an efficient and more or less regular service to a large number of interior points served by landing strips and access roads of simple construction. The policy of building such strips and access roads should be continued. In the judgment of the mission, the airways company has been well managed and has given great impetus to the colony's development. The company has a specialized knowledge and pioneering techniques, and every effort should be made by the government to encourage the company to continue to provide cheap and efficient service. 61 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

In its program the mission recommends additional equipment, to be financed privately or, if necessary, with government guarantee, as well as funds for additional landing strips and access roads. No estimate has been made of the cost of new equipment. The cost of the landing strips and access roads would be about $180,000.

VIII. Communications The telephone service of the colony is in need of thorough overhaul. The mission examined the plans for improving this service which have been worked out in detail by the Post Office. The mission is in complete agreement with these plans and fully recommends the project now before the government. Except for rebuilding, extending and improving a number of town and rural post offices, there is no need for any very large expenditures to improve the postal service, nor does there appear to be a need for capital expenditures for broadcasting or telegraph services in the next five years. The estimated cost of investment for the new telephone system would be about $4,800,000, and that for the postal service about $300,000.

62 CHAPTER 7

The Forestry Sector

I. The Problem The forests of British Guiana cover 83% of the land area. They are one of the colony's chief natural resources and, moreover, are a renewable resource which, under proper forest management, can be made to yield merchantable timber and wood products in perpetuity. The mission believes that the production of timber and timber products can be expanded to -provide for the growing needs of the local population for housing and development construction, as well as for additional exports. There are about 14,000 square miles of timber within the navigable areas of the "near" interior, and some 56,000 square miles beyond the navigable points, where logging is at present impractical and uneconomic. The latter areas are, however, exploited for balata, a gum which can be transported by air. The principal present area of exploitation of the near interior is in the relatively accessible Bar- tica triangle. This area alone is capable of supporting an expanding timber and wood processing industry for the next 20 to 25 years. Since exploitation on a commercial scale began, little thought has been given to the rational use and perpetuation of the valuable timber stands. A natural objective has been to cut out the most accessible and commercially valuable timber and to move on to new areas. A major first step towards an improved forest management policy was taken this year when the administration of the crown forests was placed directly under the Forestry Department. Provided that the Department is adequately staffed, the mission believes that a well- devised forestry program can be carried out which will increase the economic return from the forests while at the same time maintaining and improving their value as one of the colony's most important assets. 63 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

II. The Recommended Program The main objectives of the recommended program are: 1. To increase the output of lumber and wood products to meet the growing needs of the colony for development purposes, 2. To intensify lumber production for export, particularly in species not now well known in world trade, 3. To undertake a program for the long-range regeneration of exploited forestry areas. To accomplish these objectives, the government will need to make a forest inventory and to formulate a program to assist the timber industry to improve and modernize its operations at every stage from logging through marketing. The mission proposes a five-year forestry program to cost $2.3 million; the eventual economic return to the colony should very substantially exceed this sum. Only a few of the large sawmilling industries which specialize in the export of timber, lumber and other wood products administer timber concessions directly and produce sawn logs, piling and hand- squared timber. The many small sawmills depend on a very irregular supply of logs from entrepreneurs with insufficient mechanical equipment and inadequate transport facilities. Poor cutting practices cause the loss of valuable timber. Although penetration roads and skidding trails are not difficult or expensive to construct, inadequate equipment raises the cost of transport on roads and rivers. Since, to operate effectively, the local sawmilling industry must have a continuous supply of logs, the mission proposes a program of credits of approximately $300,000 in the next five years to help finance the purchase of tools, machinery, barges and other transport equipment for logging operations. These credits should be administered by the proposed Credit Corporation in close cooperation with the Forestry Department. A field logging engineer will be needed by the Forestry Department to solve the numerous technical problems of the logging industry. Lumber for domestic requirements is supplied by a large group of small sawmills. Their production is low and the quality of the end product is inferior. In 1952 and 1953 an expert provided by the Food and Agriculture Organization of the United Nations made an intensive study of the needs of local sawmills for new equipment. 64 THE FORESTRY SECTOR

This study should provide a basis for a further program of credits by the Credit Corporation for the expansion and modernization of the sawmills of the colony. Small millers will need credits to improve their milling facilities, to enable them to cut better lumber and to eliminate present wasteful milling methods. Arrangements will be needed to purchase lumber cut to grade from small millers and to stack it for air seasoning. This should preferably be done by private enterprise with financial assistance from the Credit Corporation. To promote lumber exports the government, with the cooperation of the lumber companies, should undertake a campaign to make the quality and uses of the colony's hardwoods more widely known abroad. All exports should be rigidly inspected by a qualified forest or lumber inspector to assure that they meet the necessary quality standards. Action is also needed to reduce and eventually eliminate the importation of pine lumber. This will involve further local propaganda and continuous experimentation on substitute soft hardwoods, well-graded and properly cut for the local market. The Forestry Department has been handicapped by a lack of personnel and insufficient funds for management and administration. The department still has too few technical foresters and administrative forest personnel. The shortage of rangers and inadequate transportation has slowed down inspection of the increasing number of wood-cutting areas, timber concessions, and timber sale boundaries. The mission therefore recommends an increase of $915,000 in funds for the Forestry Department over the next five years. In addition to a permanent staff logging engineer, a staff silviculturist and other staff at headquarters, more trained forest rangers will be needed. The increase in the field force should be given highest priority, compatible with securing suitably qualified personnel. Such an increase in staff is warranted by the need for technical advice in timber production and by the department's new responsibilities for the crown forests. The mission estimates the total cost for five years, including training programs, at about $645,000. An additional $270,000 will be needed by the department to undertake the first half of a 10-year program for the regeneration of depleted areas. Regeneration of the forests is necessarily a very long-term objective. In British Guiana it takes from 75 to 150 years, depending on the species, to produce a hardwood tree of merchantable size. The 65 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA government should, as a first step, lay out a 10-year program for regeneration in heavily exploited areas. In the first five years the aim should be the silvicultural treatment of an area of 75,000 acres and the development of 1,000 acres of softwood plantations. As experience is gained in methods of treatment and the routine of establishing plantations, additional areas should be treated and plantations developed. In the five years after 1958, the program should be intensified.

66 CHAPTER 8 Industry, Mining and Power

I. Industry Industry in British Guiana is primarily engaged in processing the colony's agricultural and forest products. In recent years a little over 50% of the value of industrial output has come from the processing of sugar cane, about 10%o from rice milling and 7%o from sawmilling and related industries. In all, about 80%7 of the colony's industrial output is based upon local raw materials. About four fifths of all industrial capital is invested in the sugar industry, the balance being spread thinly over the remaining enterprises, most of them small in size. Industry is owned and operated by private firms or individuals, mainly British or Canadian, except for rice milling and a few other small food processing operations carried out by the government or with government assistance. There has been some growth of industry in recent years, largely on the initiative of external private capital. There will undoubtedly be a continued natural growth of industry, though not as rapidly as would be most advantageous to the colony's development. Since the local market is small, labor largely untrained in factory work, and industrial and craft traditions largely absent, there appears little prospect for any spectacular growth of the colony's industry in the near future. There are, nevertheless, opportunities for the expansion of existing industries and the establishment of new industries, which can improve the balance of the economy. Until recently, industrial development received little direct encouragement from the government. The government has now taken action to relieve new enterprises, or new development in existing enterprises, of customs duties on imported equipment and income tax on earnings during the first five years of operation. The government has also established a technical school designed to increase the supply 67 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

of skilled labor, set up a program to foster and improve cottage industries, and has from time to time sought the advice of overseas consultants on proposals for new industries. To encourage further the development of new industries the mission recommends the establishment of an industrial section in the proposed British Guiana Credit Corporation to meet the needs of existing and prospective industries for credit and technical aid. While the Credit Corporation should encourage the influx of external private capital, its first concern should be to stimulate the local investment of local capital. A number of the industrial processing plants most suitable for the colony have been included in the agricultural, transport and forestry programs because of their close link with the raw material sources. They include rice mills, a milk pasteurization plant, an ice plant, abattoirs, and improved and mechanized sawmills and stone quarries. Combined capital costs and credits for the modernization of existing plants or the establishment of the new enterprises noted in previous chapters would amount to about $5.4 million. It is possible that some of these may be attractive to external private capital. In addition to the above, the following also offer possibilities, particularly for local capital: 1. Food processing The possibility of producing guava jelly on a commercial scale is already being investigated by local interests. The processing of citrus products and sweets may also offer opportunities. 2. Leather and clothing a. Improvement and modernization of existing tanneries should prove feasible, especially if combined with the development of new local uses for leather. b. The colony imported over $1.5 million worth of shoes in 1951. The possibility of producing cheap shoes locally to meet part of this demand should be worth investigating. The industry does not require large capital and most of the skills required are similar to those of the needle trades. c. Local industry already produces shirts and other articles of clothing for local consumption and for export. There appears to be room for expansion in this field. 68 INDUSTRY, MINING AND POWIER

3. Building materials and furniture a. Bricks A modern brick plant, which operated for a short period after the war, is now closed. In view of the great building needs of the colony and the advantages of fireproof construction, the revival of this enterprise should be seriously considered. b. Wood products The manufacture of window frames, doors, other articles of millwork and furniture offer possibilities for expansion. The improvement in the supply of well-cut, seasoned lumber-an objective of the forestry program-should assist this type of development. c. Cottage indiustries The colony's program for developing cottage industries offers opportunities both for increases in the quality and quantity of the products of rural craftsmen and the growth of new industries of a more commercial nature.

The mission has included an amount of $1.5 million for credits over the next five years to assist in the establishment of these and similar enterprises.

II. Mining

A. BAUXITE British Guiana is the world's second largest producer of bauxite. In 1952, Surinam produced 2.8 million tons; British Guiana, 2.3 million tons; and the next largest producer, the United States, 1.8 million tons. As indicated in Chapted 1, over 90% of the colony's output is produced by the Demerara Bauxite Company. A well- managed firm, the company is a subsidiary of Aluminium, Ltd., the parent company of the Aluminum Company of Canada. About 5% of the bauxite produced in the colony is calcined and the rest is dried. Calcined ore is produced at Mackenzie and shipped to the United States and Europe. With the exception of the small amount produced by the Berbice Bauxite Company at Kwakwani, which is shipped to the United States, most of the dried ore is exported to the Arvida 69 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

plant of the Aluminum Company of Canada for conversion to metallic aluminum. It is unlikely that stages in the processing of bauxite beyond those of drying and calcining will be undertaken in the colony. The aluminum industry is highly integrated vertically. All the major producers have their own sources of bauxite, their own alumina plants and their own aluminum smelters. The question of where best to produce alumina and aluminum must therefore be considered by each company in relation to the alternatives open to it. In the case of the Aluminum Company of Canada, the very cheap electric power available now in Quebec and British Columbia is an important factor. Although further processing is not an immediate likelihood, it is expected that calcined ore will form a somewhat higher proportion of total production in the future, but so far as the mission is aware there are no plans for increasing the general level of production of bauxite above the 1952 output level.

B. GOLD, DIAMONDS AND OTHER MINERALS About 85% of the colony's gold is produced by the British Guiana Consolidated Goldfields, Ltd., a Colonial Development Corporation enterprise; the remainder comes from several small companies and a large number of individual prospectors, locally known as "porknockers." It is expected that the output of gold, which was 24,000 ounces in 1952, will be nearly doubled in 1954, when British Guiana Con- solidated will bring a new dredge into operation. The bulk of the diamond output is produced from the small workings of individual miners. Production is likely to stay more or less at the present output of 40,000 carats for the next five years. The output of columbite- tantalite ore should increase as mining operations get underway, but total output will probably not be large. It is too early to predict whether the known deposits of manganese ore will prove sufficiently large and accessible to warrant exploitation, and it is still uncertain whether the chromium deposits will prove of any commercial value.

C. FUTURE PROSPECTS Assuming no change in prices, some increase in the over-all value of mineral production may be expected over the next few years as a

70 INDUSTRY, MINING AND POWER result of a small increase in the total value of bauxite production brought about by an increase in the proportion of the more valuable calcined bauxite, and an increase in gold output. Changes in the production of other minerals are not expected to have much effect on total value. It would be to the benefit of the colony to continue to assist mineral development wherever possible. The government has enlarged the staff of the geological survey, and income tax and customs duty concessions have been granted to new mining enterprises. A further strengthening of the geological survey should be considered and the work should be more closely coordinated with the other general surveys. III. Power Electric power is neither cheap nor widely available in British Guiana. Although power is privately produced by the sugar estates and industrial and mining enterprises and, in some cases, by individual farms and houses, it is supplied to the public only in George- town and environs, New Amsterdam and Bartica. In the two latter places the plants are very small and- the power is expensive. The New Amsterdam system is run by the municipality, that in Bartica by a private company. Power is supplied to Georgetown by the Demerara Electric Com- pany, a subsidiary of the International Power Company of Montreal. The company has a franchise to serve the city and an area up to five miles outside on the east bank of the Demerara River only. Its plant consists of three 1,250 kw. steam turbine generators, one 3,500 kw. unit installed in 1948 and one 5,000 kw. unit in the process of installation. The demand for power in Georgetown has been increasing at a rate of about 10% per year since the war. In 1952 consumption reached 17.5 million kwh. The company's plant appears adequate to meet the expected further increase in demand for the next five years. There are a number of potential water power sites in the colony. All are far from the centers of population and, with one exception, none has been investigated fully enough to assess its real potentialities. The exception is Tumatumari Falls on the Potaro River, where the British Guiana Consolidated Goldfields is planning to build 71 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

a low dam and power station with a capacity of 2,000 hp. to supply power to two dredges. Apart from this project, there is little prospect of the development of hydroelectric power in the immediate future. Before any scheme can even reach the planning stage, further stream flow and topographical data must be collected. At present stream-gauging stations are established at seven sites, but none has been in operation for more than five years. This is not an adequate basis for planning because of the 14-year climatic cycle of the area. A more fundamental difficulty is the relatively low level of demand for power in the colony and the location of this demand at considerable distances from the potential power sites. In these circumstances, it appears that the most likely way for the colony to develop its power resources is in connection with large mining or industrial users at interior sites. Such development would have to be undertaken by private enterprise. Accordingly, the only action which the mission recommends in the power field is: 1. Continuation of the stream-gauging program, 2. Extension of topographic surveys into the areas of potential water power sites, in association with the aerial and other proposed surveys of the Interior.

72 CHAPTER 9 The Social Sector

I. Education British Guiana adopted a system of compulsory education in 1876, only six years after the United Kingdom, and education has developed very much on the British pattern. It has not, however, closely followed recent British developments, which involve the sifting of all primary school pupils at about the age of 12 into three groups: one group consisting of those best fitted for an academic education on traditional lines leading to a university, a second group of those of more practical aptitudes who are given education with a strong vocational bias in technical schools, and a residual third group of those for whom a less ambitious general education is provided. In British Guiana, education beyond the primary stage is limited to children bright enough to win scholarships, or whose parents can afford school fees, and the postprimary education open to them is of a strictly academic type strongly weighted in favor of arts rather than sciences. Without suggesting that recent British developments are necessarily appropriate to the needs of British Guiana, the mission believes that an exclusively academic and literary pattern of education may not be ideally suited to a country where emphasis is turning to the application of modern techniques to the development of primary resources. In the opinion of the mission, more attention should be given to vocational training appropriate to the needs of the country. Until very recently, the public educational system made very little provision for vocational training, apart from a small trades school for girls which is handicapped by very inadequate accommodation. Secretarial and commercial training is provided by private schools only. Some government departments, e.g. Transport and Harbors, Public Works and Land and Mines, train apprentices in techniques, such as engineering and surveying, which they need for their own 73 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA purposes. A large private firm has trained many of the skilled mechanics now working in the colony. In 1950 a Technical Institute was completed in Georgetown, with the primary object of providing part-time training in engineering and allied subjects for youths apprenticed to industrial firms. The Insti- tute is not yet fulfilling this purpose because: 1. A system of formal apprenticeship, such as prevails in the United Kingdom engineering industry, has not yet found firm footing, partly as a result of prejudice arising from un- happy memories of the old system of indentured labor, and partly because most factories and workshops lack skilled workers competent to train apprentices. It has therefore been found desirable to begin by providing courses of training for the so-called skilled workers themselves. 2. Some employers are reluctant to release junior employees or apprentices for the normal one day's instruction at the Insti- tute each week. If, however, fuller cooperation between the Institute and local industry can be developed, the influence and achievement of the Insti- tute should increase greatly in the next few years. Agriculture and sawmilling, as well as local manufacturing and processing industries, are becoming increasingly mechanized, and there is a growing need for workers skilled in the handling, repair and maintenance of machinery. Attention should be given to the possibility of developing a junior technical department in the Institute, which would take suitable pupils from the primary schools at the age of 12 for full-time training. Success in this direction would open the way to a more extensive provision of such facilities in Georgetown and possibly elsewhere in the colony. Consideration should also be given to the possibility of organizing commercial courses in the Institute. Since the Technical Institute is already built and equipped, the development of its functions will not call for important capital expenditures in the next few years, although in this, as in other fields where special qualifications are required, the problem arises of offering terms of employment which will attract suitably qualified instructors from outside the colony. For a good many years to come the building of primary schools is bound to be the chief form of capital expenditure on education. 74 THE SOCIAL SECTOR

Most of the existing schools are seriously overcrowded and many of the buildings are in urgent need of replacement. In addition to this, provision must be made for an annual increase of the school population of about 3,000 pupils at the present rate of growth. A development program for British Guiana must of necessity give priority to projects which will enable the colony to support its increasing population at an adequate standard of living. This pressing need leaves little scope, for some years to come, for the capital expenditures which would permit educational advances on a broad front. On the other hand, to thrust education into the background for the next five years would only create a more serious problem for later years. The mission therefore believes that it is desirable to maintain capital expenditures on education at a level which will, in general, suffice to maintain existing standards and, in directions such as vocational training, leave room for advance. Direct budgetary provision for education has increased from $2.7 million in 1950 to $3.4 million in 1953. This is mainly due to increases of teachers' salaries, together with increased staffing and other expenses resulting from the growth of the school population. In addition, British Guiana is now contributing $200,000 a year to the Uni- versity College of the West Indies. From 1946 through 1951, the cost of new school buildings was entirely defrayed from sources outside of direct appropriations, as follows: (thousands) CDW Grants ...... $ 937 Budget Surplus ...... 231 Loans ...... 562

Total ...... $1,730 The program thus financed included the building of the Technical Institute and the rebuilding of the government boys' secondary school, as well as extensive primary school construction. When these special sources of funds were exhausted, direct appropriations were made for new buildings: $60,000 was provided in the 1952 budget for primary school construction, and the 1953 estimates include $100,000 for primary schools and $25,000 for rural teachers' houses. The government tentatively plans to keep construction over the next 75 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA five years at about the 1953 level by spending altogether $440,000 on the construction of primary schools and $100,000 on rural teachers' houses. This proposed level of construction expenditure is no more than the bare minimum necessary to prevent a marked deterioration of standards of school accommodation. It will not permit any reduction in the overcrowding of the primary schools and it will mean that many seriously obsolete and dilapidated school buildings will have to continue in service. It will set a severe limit to the introduction of desirable advances, especially in the field of vocational education. The mission believes that, with the population of school age growing at a rate of 3% a year, expenditures on the construction of schools should be raised to $175,000 a year, and thus to $875,000 over the five-year period. II. Health The principal hospitals are operated by the government Medical Department. There are five government general hospitals and three special hospitals for the treatment of leprosy, tuberculosis and mental disease. In addition, the Medical Department is gradually taking over the hospitals on the sugar estates, formerly constructed and operated by the estates themselves. The Medical Department has a staff of 50-60 full-time and part- time medical officers, including specialists and local health officers. In recent years there has been great difficulty in filling the specialist posts owing to the unattractiveness of the salary scale to suitable Commonwealth candidates. Direct budgetary provision for health services has increased from $2.5 million in 1950 to $3.3 million in 1953, as a result partly of increased salaries and partly of the larger staff needed in consequence of an expansion of hospitals and other facilities. As in the case of education, these figures do not take account of a program of capital expenditures, which from 1947 through 1952 was financed from the following sources: (tbousands) CDW Grants ...... $ 507 Budget Surplus ...... 609

Total ...... $1,116 76 THE SOCIAL SECTOR

This program will be completed in 1953 with the expenditure of $364,295 from budget surplus funds. It included the campaign against the malaria and yellow fever mosquitoes, as well as major hospital extensions and improvements. As a result of the construction already undertaken and the virtual elimination of malaria, formerly a major source of demand on medical care and hospital space, the medical and health services are faced with no urgent immediate needs for additional facilities. No major capital expenditures are therefore proposed during the next five years, and there should be no need for any great increase in current expenditure except for the adjustment of salaries necessary to attract doc- tors from other parts of the Commonwealth to fill present gaps in the staff of the Medical Department.

III. Housing The very slow growth of population before 1945 and the fact that tlhe sugar estates traditionally provided accommodation for their workers, have until recently limited government activities in the field of housing. A Central Housing and Planning Authority was established in 1948. It has prepared a Planning Scheme for the Greater Georgetown area and is tackling the problem of slum clearance by means of: 1. The Ruimveldt Decanting Center which, mak-ing use of barracks removed from the Atkinson Field airport, will provide flats to accommodate 231 families while their slum homes are demolished and replaced. Accommodation for 126 families has already been completed at a cost of $500,- 000. The project will be completed in 1953 by means of a further expenditure of $228,000 drawn from the colony's budget surplus funds. 2. The La Penitence housing project, on the outskirts of George- town, where a start will be made this year on the construction of 100 low cost houses to rehouse slum dwellers. For this project $500,000 has been allocated from loan funds, of which $200,000 will be spent in 1953. The government has also helped to finance, on a part loan, part grant basis, land settlement schemes in connection with the conversion of former sugar estates to rice. Two such schemes, at Verge- 77 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA noegen and Cane Grove, are due to be completed this year, at a final cost of $21,000, drawn from budget sulplus funds.- Because an increasing proportion of the people living on sugar estates do not actually work on the estates or work part time only, the proprietors find it difficult to accept responsibility for their accommodation to the same extent as in the past, and many of them are housed under unsatisfactory conditions. Residents on the estates increased from 68,000 in 1927 to 81,000 in 1951. On the basis of the recommendations of the Venn Commission, it was decided in 1949 that the government would assist in the rehousing of workers on sugar estates, other than essential and key employees for whom the estates would remain responsible. This government assistance is given in the form of loans to individual workers out of the Sugar Industry Welfare Fund, which is maintained by a levy on the industry introduced in 1947. The worker may borrow up to $500, which suffices to cover barely one half of the cost of the average house. The worker must therefore rely on savings or private borrowing for the rest, with the consequence that the poorer and less provident workers do not benefit from this scheme. In 1951 458 houses were built. The government has also allowed $300,000 from loans funds to be used to make housing loans to government officials. Of this, $100,000 has already been disbursed arid the remainder will be disbursed this year. The increased rate of growth of population is bound to make the housing problem more acute as time goes on. Since the decline in mortality is greatest for the lower age groups, the increase in the size of these age groups since 1945 will not be fully reflected in the demand for housing until they begin to reach maturity in the middle 1960's. Already, however, it is helping to overcrowd existing accommodation. With population increasing, as at present, by about 13,000 a year, an annual need for about 2,000 new houses is superimposed upon replacement, resettlement and slum clearance needs. Current private construction (including that partly financed by government loans) is building new houses, including replacements, at the rate of 2,300- 2,400 a year. The mission believes that the rate of construction of new homes should be raised during the next five years to about 3,000 a year if 78 THE SOCIAL SECTOR the increase of population is not to create new slum and health problems and if, as recommended elsewhere in this report, land reclamation projects are to be accompanied by effective resettlement schemes. British Guiana is more fortunately situated than many other countries from the point of view of house building. The abundant local hardwoods furnish a building material of great strength and dura- bility, provided that termites can be checked. The climate makes provision for heating houses unnecessary, rain comes invariably from the east or northeast and, if the roof overhangs sufficiently to give protection on this side, glazed windows are no more than a refine- ment. Moreover, building does not have to be carried out, as in the West Indian islands, with an eye to hurricanes, which are unknown in British Guiana. Experirnents in the construction of prefabricated and other types of low cost houses made of local timber, aluminum and other materials are being carried out at Georgetown by the Central Planning Authority and at Mackenzie by the mining company. The Central Planning Authority has designed a four-room wooden family house with many modern amenities which can be erected for little more than $3,000. Simpler houses can be built even more cheaply. The principle adopted in rehousing sugar workers, and viewed with sympathy by the Central Planning Authority, of giving financial assistance to people needing houses, so that they can become home owners rather than tenants, is excellent, provided that due consideration is given to the position of those for whom this method would be inappropriate. The mission recommends that government investment in housing, whether mnade directly or in the form of assistance to individuals, should be raised from the level of $650,000 planned for 1953 to $1 million in each of the years 1954, 1955 and 1956, and to $1.5 million in each of the two following years. The mission believes that these credits, together with those which can be provided by private enterprise, should meet the most urgent requirements in the field of housing.

79 CHAPTER 10

Government and Public Administration

I. The Former Constitution The mission visited British Guiana on the eve of major constitutional changes which will have an important bearing on economic and financial policy, and hence on the decisions which may be taken in the light of this report. For this reason the mission has considered it desirable to describe these changes. Until April 1953 the colony was administered under a constitution introduced in 1928 and subsequently somewhat amended. The franchise was extended to all literate persons over the age of 21 who had an annual income of $120 or fulfilled roughly equivalent conditions zof ownership or tenancy of property. Under the constitution, the Governor, in addition to being chief executive officer, was also President of the Legislative Council. The Council consisted of his three chief administrative officials, the Co- lonial Secretary, the Financial Secretary and the Attorney General, as ex officio members, seven unofficial members nominated by the Governor, and 14 elected members. The Governor was also President of the Executive Council, i.e. cabinet, the other members of which consisted of the three principal officials, as above, and five other members of the Legislative Council nominated by the Governor. The heads of all government departments, including those mentioned above, were civil servants appointed by the administration. Appointments to the Legislative Council, the Executive Council and to departmental headships were, however, by no means confined to British residents or officials. Representatives of the various races in British Guiana have filled with distinction many appointed offices. The Governor possessed a discretionary power of assent, dissent or reservation over all bills passed in the Legislative Council. He had also the power, in special emergencies, to declare that any bill, 80 GOVERNMENT AND PUBLIC ADMINISTRATION motion, resolution or vote should have effect as if it had been passed in the Legislative Council. Under this system, the most important official below the Governor was the Colonial Secretary, who not only had responsibility for fot- eign and Commonwealth affairs, but also acted as a combination of second in command and chief of staff through whom the other departments, with the exception of Finance and Justice, normally chan- nelled business for the' attention of the Governor and the Executive Council. His secretariat was therefore the central part of the administrative machinery of government. In particular, the coordination of development was entrusted to a Development Commissioner who worked immediately under the Colonial Secretary. II. The New Constitution In 1950 a Constitutional Commission, headed by Sir E. J. Wad- dington, was appointed by the Secretary of State for the Colonies to review the franchise and the composition of the legislature and the Executive Council. The Commission submitted its report in 1951 and its recommendations were, after review by the Secretary of State and the government of the colony, substantially adopted. The elections held on April 27, 1953 marked the coming into effect of the new constitution. This constitution extends the franchise without literacy or property qualifications to all persons who have reached the age of 21. Twenty-four constituencies elect one member each to the House of Assembly, the elective chamber of a legislature which also comprises a nominated second chamber, the State Council. The latter consists of nine members of whom six are nominated by the Governor. The remainder are appointed by him in the ratio of two to one upon the recommendation of the majority and minority groups in the elective chamber. The legislature has a life of four years, subject to the Governor's discretionary power of prorogation and dissolution. The State Council has a suspensory veto of one year on all bills passed by the House of Assembly other than money bills, upon which its suspensory veto is for three months only. Money bills may originate in the elective chamber only; other bills may be introduced in either chamber. The Governor has discretion in special cases to call a joint session of both houses to consider and to vote on any bill which has been once rejected by the State Council. 81 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The Governor retains his former prerogative of assent, dissent and dissolution; but will normally exercise them only on the advice tendered to him in the Executive Council. Since he no longer ptesides over the legislature, the new constitution has the advantage of removing him from day to day political contentions and relieving him of a serious demand on his time and energy. The principal innovation of the new constitution is a large degree of ministerial responsibility. The Executive Council now consists of the Governor, the Chief Secretary (a new office replacing that of Colonial Secretary), the Financial Secretary and the Attorney General, who remain, as before, appointed and not elected, together with six ministers elected by the House of Assembly, and a seventh minister, without portfolio, elected by the State Council. The six elected ministers head ministries which group together existing government departments as follows: Ministry Departments 1. Labor, Industry and Labor Commerce Supplies and Prices 2. Communications and Works Public Works Post Office Transport and Harbors Civil Aviation 3. Agriculture, Forests, Lands Agriculture and Mines Forestry Lands and Mines Geological Survey 4. Health and Housing Medical and Health Services Housing Town and Country Planning 5. Education Education, and certain educational institutions previously administered separately 6. Local Government and Local Government Social Welfare Social Welfare Prisons Cooperative Department 82 GOVERNMENT AND PUBLIC ADMINISTRATION

The change of the Colonial Secretary's title to Chief Secretary is accompanied by a fundamental change in his position. While matters of great importance, such as foreign and Commonwealth affairs, defense, internal security (including police), elections, the administration of the interior and the Amerindians, and the regulation of the Civil Service, are entrusted to hbm, his office no longer serves to coordinate the whole administration, and ministers will submit matters directly for the Governor's consideration. The former Colonial Secretariat has therefore been split up so as to provide each ministry with its own secretariat. An important function of the ministerial secretariats, each headed by a senior civil servant, is to coordinate the work of the various departments within each ministry. To ensure that matters presented by ministers for the consideration of the Governor and Executive Council are duly coordinated and in appropriate form, a new post, that of Governor's Secretary, which is combined with the post of Secretary of the Executive Council, has also been created. A special need for coordination arises in the field of economic policy. It is therefore planned, as already noted, to set up an Eco- nomic Council at the ministerial level composed of the Financial Secretary, the Minister of Labor, Industry and Commerce, the Min- ister of Agriculture and the Minister of Communications and Works, and with a secretariat headed by the Development Secretary.

III. The Implications oj the New Constitution What effect the current constitutional changes will have on the efficiency of public administration and, in particular, on the formation and execution of economic policy is not easy to evaluate at so early a stage. It appears reasonable to differentiate between short-run and long-run effects. In the short run, there is bound to be an appreciable period of readjustment and growing pains, as the new ministers will undoubtedly take a considerable time to acquire the experience necessary to discharge their responsibilities in the most effective way. They are likely to be handicapped'in this respect at first by the fact that their secretariats, created by the fragmentation of the former well-knit Colonial Secretariat, will have to devise appropriate new procedures. Experience may well show that some ministries are overburdened, 83 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA or that some departments have not been assigned to the most appropriate ministry. For example, the Minister of Agriculture, Forests, Lands and Mines will certainly have to carry a heavy burden of responsibility, and the appropriateness of such combinations as Labor, Industry and Commerce, or Local Government and Social Welfare is by no means beyond question. It may prove necessary, therefore, to make some redistribution of departments among ministries or to increase the number of ministries. These short-run problems should, however, gradually disappear. Two questions arise next which overlap considerably: first, whether there are features of the new constitution which may continue even in the long run to present a source of difficulty, and, second, whether the new constitution will aggravate or simplify certain problems which already exist in the field of public administration. A problem that has already been apparent for some years is the difficulty of obtaining enough persons of suitable quality to fill senior civil service posts. This problem, which is general in underdeveloped countries, applies particularly to posts requiring special technical knowledge and experience, and is due primarily to the fact that, at the present stage of development, there are not yet enough citizens of British Guiana with the necessary qualifications. It is therefore necessary to look elsewhere, and primarily to the United Kingdom, for officials of the appropriate type. To attract suitable candidates, however, requires salaries and conditions of service conspicuously out of line with the income structure of the colony. There is already considerable political pressure against offering such salaries, with the result that it is difficult to fill the posts in question, or to keep the holders, including even trained Guianese, long in the colony. A greater measure of popular influence on policy may increase this pressure and may also increase the allied pressure, already appreciable, to appoint to these posts Guianese candidates who do not in fact have the requisite qualifications or experience. Government posts should clearly be filled, as far as possible, by citizens of British Guiana, but any attempt to speed this process by lowering standards of ability and attainment is bound to react adversely on the quality of administration. In particular, the mission would like to stress the technical, engineering and economic complexities of development programming, a 84 GOVERNMENT AND PUBLIC ADMINISTRATION task which calls for a highly competent professional staff. In order to recruit and retain such a staff, salaries and other conditions of service must be at least commensurate with those in other parts of the Commonwealth. To attempt to make small savings in salaries is a penny-wise pound-foolish policy when it means entrusting the planning of projects costing perhaps millions of dollars to an inade- quately trained and inexperienced professional staff. It should be borne in mind, however, that recruitment to the Civil Service is controlled on the British pattern by a Public Service Com- mission under the supervision of the Chief Secretary. This should prove an effective safeguard against any undue lowering of civil service standards, and against the more serious abuses of political patronage should any tendency in this direction appear. Nevertheless, taking into account the need to provide persons of appropriate quality for the House of Assembly, the State Council, and for the increase in the number of civil servants which is likely to take place, the new constitution involves some additional strain on the supply of persons of this caliber in the relatively small population. In the long run, ministerial responsibility, coupled with a stable party system, may exert a salutary influence in favor of greater stability, decisiveness and continuity of policy. Hitherto much of the formation and execution of policy have been in the hands of officials who have not generally remained long in the colony and whose stays have been punctuated by long intervals of home leave. The contrast between the multiplicity of plans, in general of high quality, for development in various economic fields, and the comparative lack of effective and continuous action, was very noticeable to the mission and may largely be ascribed to the lack of continuity of leadership. The grouping of departments under ministers and the coordination of the various economic fields of administration by the Economic Council should greatly help to reduce the lack of coordination among the various departments which was also apparent to the mission. Hitherto, coordination has been achieved at the executive level by the Colonial Secretariat, which has had an ever increasing volume and complexity of work, and at the planning level by various ad hoc committees. In addition, the principal departments have hitherto received guidance from Advisory Committees of the Legislative 85 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Council. These Advisory Committees will now be superseded by the system of ministerial responsibility. The mission formed the opinion that, while these different committees did much valuable work, they consumed an excessive amount of the time of senior officials and tended to delay action and to divide responsibility. This chapter, written before there has been any real experience of the working of the new system, can do no more than attempt to indicate some of the ways in which the changes may raise or solve problems. The speed with which the new machinery of government begins to work smoothly will depend above all else on the time required for responsible and stable political parties to crystallize. The most important task ahead lies in the formulation and effective execution of a program for the continued development of the colony's resources and for progress towards a higher standard of living. This task will require the full efforts of both the government and people of the colony.

86 APPENDIX I

National Income and Manpower

I. National Income In 1951 gross national product at factor cost amounted to $150.6 million. Deducting for depreciation as well as for income paid abroad, net national product of British Guiana amounted to $135.9 million or to $315 per head. The 1952 per capita income level is likely to have risen further because of a sharp rise in exports compared with the preceding year. The following figures for 1950 indicate how income per head in British Guiana compares with that in other countries of the area:

TABLE 6

INCOME PER HEAD IN BRITISH GUIANA AND NEIGHBORING COUNTRIES 1950 Coutnitry Income Per Head (B.W.I. $) Brazil ...... 340 Surinam ...... 340 Mexico ...... 310 Jamaica ...... 290 British Guiana ...... 290 Dominican Republic ...... 225 Honduras ...... 188 Table 12 provides a comparison of national income by sector for 1948 through 1951. A gross product estimate for 1942 is included for comparison, although no breakdown by sectors is available for that year. In the latter year the distribution of income by sector was as shown in table 7. No data are available on the distribution of personal income but the heavy progressive taxation of income tends to correct extreme inequalities. 87 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

TABLE 7

PERCENTAGE DISTRIBUTION OF NET GEOGRAPHICAL PRODUCT 1951 Agriculture and forestry ...... 27% Commerce and finance ...... 15% Manufactures ...... 13% Mining ...... 10% Construction ...... 9% Transport and communications ...... 6% All other sectors ...... 20%

The recent rise in real national income and real income per head is in part due to the increasingly favorable prices obtained by the colony for its exports, which normally yield 40-45°% of the national income, in relation to its imports. From 1948 to 1951, the terms of trade moved in Guiana's favor by 20%. Favorable export prices have stimulated production of the three chief exports and have helped to maintain a high rate of investment which, in turn, has further contributed to the increase in national income.

TABLE 8

CAPITAL FORMATION 1948-51 Gross CapitalFormation Net Capital Formation Year millions of $ % of GNP millions of $ % of NNP 1948 25.8 24 19.7 19 1949 23.6 20 17.0 15 1950 25.9 19 18.4 14 1951 34.7 23 26.5 19 Average for period 21.5 17 Investment from external sources, including grants, loans, and private direct investment, totaled 63% of all capital investment in the period. Gross private direct investment in the colony from external sources amounted to nearly $50 million from 1948 to 1951, or to 45% of gross capital formation during the period, as indicated in Tables 10 and 11. A substantial part of these represented re-invested profits. Local private savings invested in the colony amounted to a further 26%, and government investments to 11% of the total. There is an unusual and rather paradoxical relationship between 88 NATIONAL INCOME AND MANPOWER local savings and investment. Mlost of the liquid savings held in banks and other institutions were invested outside the colony while, on the other hand, the bulk of the private investment in the colony came from external sources. The structure of the colony's capital stock in 1951 is shown in Table 15. Comparison of this table with Table 14 indicates that in recent years capital formation has tended to follow a new pattern. Whereas 25% of the colony's capital stock in 1951 consisted of public property, during the period 1948-51 public capital formation amounted to only 22% of the total. Housing formed 30%o of the capital stock in 1951, but accounted for only 21% of capital formation during the period 1948-51. Capital Formation and the Rate of Increase in National Income. An increase in the national income depencls upon the rate of increase in the capital goods with which the economy produces its income. The maintenance of a high rate of investment, or capital formation, is necessary if incomes are to increase when population is growing rapidly. From the experience of the postwar period it is possible to obtain an approximation of the relationship which exists between capital formation and increase of income in the colony. During the period from the middle of 1948 to the middle of 1951 net capital formation averaged 17% of net national product. In the same period net national product increased at an average rate of 4.6%o a year; the ratio of capital formation to increase in income was therefore about 3.5. The proposed development program for 1954-58 assumes there will be a rate of gross public investment in the next five years which will average 8% of GNP, while private investment will average a further 17%. Net capital formation after allowing for depreciation would therefore be about 16-17% of net national product, i.e. at about the same rate as before. Assuming, therefore, the same rate of increase of the national income as in 1948-51, net national product would increase by 1958 by 23%. To be on the conservative side, the mission estimated in Chapter 3 an over-all increase of 20%, which may, however, be exceeded during the period. This compares with an anticipated population increase of 147o. The projected rate of increase in national income is subject to variations as the pattern of investment changes; a high rate of investment cannot, for example, insure any given rate 89 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA of income growth in the face of unfavorable changes in the terms of trade or of other circumstances which may adversely affect the full utilization of the colony's capital resources.

II. Manpower Although statistics of manpower, and its distribution by sectors, have not been developed to the same extent as statistics in other fields, it is possible to make a rough approximation of existing and prospective rates of growth of the labor force by means of a projection of 1946 census data. The 1946 census indicated the number of gainfully occupied to be 146,200. With an estimated rate of growth of 1.5% a year since then, it is believed that in mid-1952 the labor force was about 160,700. Not until 1960 will the present rate of growth of the population as a whole, of 2.8% a year, affect very seriously the size of the labor force. Until then, manpower will increase by about 2,600 a year giving a projected labor force in 1958 of about 176,000.

A. RURAL AND URBAN GROWTH In addition to the general increase in the labor force since 1946, there has been a shift of the population from the rural areas to the towns, particularly to Georgetown, which has brought about, during the past six years, a disproportionate rate of growth in the urban labor force as compared with the rural: Urban % Rural %o Total (in thousands) 1946 42.2 29 104.0 71 146.2 1952 49.3 31 111.4 69 160.7

If this present rate of growth were to continue over the next five years, the urban areas would account for just short of one third of the labor force of the colony at the end of 1958. The extent to which continued migration to urban areas will take place will depend, however, on the degree to which the development program is successful in providing alternative rural sources of employment, either on nrew cultivated areas, in agricultural processing plants, or in nonagricultural occupations such as road building, rural housing, or forestry.

90 NATIONAL INCOME AND MANPOWER

B. DISTRIBUTION OF LABOR FORCE An estimate of the labor force, based on the 1952 voters' list, does not give a very precise estimate of the distribution of the present labor force because of the large proportion (15 %) of workers unclassified as to industry. The mission has therefore made a rough projection of the labor force of the 1946 census, with adjustments to the growth of real product in the various sectors.

TABLE 9 ESTIMATED DISTRIBUTION OF THE LABOR FORCE (in thousands) 1946 1952 Agriculture, fisheries, and forestry ...... 67.4 71.5 Mining ...... 4.1 4.6 Manufacturing ...... 23.2 25.3 Trade and finance ...... 12.0 13.6 Construction ...... 7.2 9.1 Transportation and communications ...... 6.2 6.6 Government services ...... : 6.0 6.4 Others ...... 20.1 23.6

Total ...... 146.2 160.7

C. MANPOWER AND THE INVESTMENT PROGRAM Except in agriculture, where the development program is geared to an absorption of new farmers on additional cultivated land, and to a reduction in rural underemployment by providing farms of a more economic size, the mission has not attempted to project the effect of investment on employment in particular sectors of the economy. In the first place, existing estimates of the distribution of the labor force are only approximate, and a projection to 1958 of 1946 data would be unreliable. Secondly, the government's investment program will be very much smaller than that of the private sector. Prospective absorption of labor by the private sector is more difficult to judge than that in the public sector. Employment and income of the growing urban population will depend very substantially upon the degree to which private investment is maintained. The governmental investment program, which is large in such fields as transportation, communications and housing, 91 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA will, however, also have a decided and favorable impact on the labor market. The mission suggests, as an essential first step in the proposed development program, that a census of the labor force be undertaken by the Development Secretary's office in cooperation with the De- partment of Labor. When this is completed, the mission suggests further that an estimate of the expected manpower needs by sectors, under both the public and private investment program, be prepared. This would be particularly useful as a guide to an expanded vocational training program. TABLE 10

FINANCING OF CAPITAL FORMATION 1948.51 Net Capital Domestic Savings Formation Foreign Private as % of Capital' Savings Government NNP 1948 19

1949 15 63% 26% 11%O 1950 14

1951 19

'Includes grants, loans, private direct investment and changes in balances held abroad. TABLE 11

BREAKDOWN OF FOREIGN FINANCING OF CAPITAL FORMATION 1948-51 (in million dollars)

Total Foreign Private Direct Grants & Govern- Capital Financing Inlvestment ment Borrowing Outflow' 1948 13.0 12.2 2.5 +1.7 1949 10.8 10.2 1.6 +1.0 1950 11.0 8.6 1.3 -1.1 1951 16.8 18.6 11.8 +13.6

Total -51.6 -49.6 -17.2 +15.2

tChanges in foreign balances and investment abroad, including investment of local savings abroad. 92 NATIONAL INCOME AND MANPOWER

TABLE 12

NATIONAL PRODUCT AND INCOME 1942, 1948-1951 (in million dollars)

1942 1948 1949 1950 1951 Gross product at factor cost ...... 56.6' 108.7 119.5 135.0 150.6 Less depreciation ...... n.a. 6.1 6.6 7.5 8.2 Net geographical product at factor cost ...... n.a. 102.6 112.9 127.5 142.4 Agriculture and forestry ...... - 26.0 27.1 31.9 38.4 Mines ...... - 8.2 10.7 12.0 14.6 Manufacture ...... - 16.6 17.8 19.6 18.8 Construction ...... - 7.5 9.9 11.2 12.1 Public utilities ...... - 0.5 0.7 0.7 0.6 Commerce and finance ...... - 15.9 16.3 18.0 21.7 Transport & communications ...... - 6.2 7.4 8.0 8.7 Rental of dwellings ...... - 5.2 5.2 5.7 5.6 Government services ...... - 5.7 5.4 6.0 6.8 Community & business services ...... - 5.0 6.0 7.1 7.2 Personal & recreational services.... - 5.8 6.4 7.3 7.9 Less net income paid abroad2 ...... n.a. 2.2 4.9 5.2 6.5 National income ...... n.a. 100.4 108.0 122.3 135.9

1 Dr. Benham's figure of $52.3 million has been adjusted for comparability by including in the value of sugar exported "Certificated Preference and Canadian Benefit Pool" receipts ($1.1 million) and by adding back imported replacements of machinery, etc. ($3.2 million) deducted by Dr. Benham vice depreciation. ' After tax. Source: Development Commissioner's Office

93 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

TABLE 13

INDEX OF REAL PRODUCT 1942, 1948-1951 %of Net Geo- INDICES graphical Product, 1942 1948 1949 1950 1951 1951 1. Agriculture and forestry.... 27 83 88 90 89 100 2. Mines ...... 10 59 90 85 77 100 3. Manufacturing ...... 13 81 88 89 95 100 4. Construction ...... 8 20 77 91 102 100 5. Public utilities ...... 1 47 68 76 88 100 6. Commerce and finance ...... 15 62 85 87 89 100 7. Transport and communications ...... 6 76 91 93 94 100 8. Rental of dwellings 4 84 92 95 97 100 9. Government services . 5 65 90 96 99 100 10. Other services .11 70 88 92 95 100 11. Real net geographical product ...... 100%7 69 87 90 91 100 12. Real national product ...... 95%o 69 89 90 91 100 13. Real national product ...... 84 94 95 94 100 (per head of population)

NOTES: (a) Weights base: 1951. (b) Items 1, 2, 3 and 5 were computed on the basis of physical changes in the quantities produced; item 6 on the basis of trends in the volume of local and imported goods for home consumption; item 8 (except for 1942) on the basis of changes in floor area; and the remaining items mainly by deflating the value of output for price changes. (c) Item 12 equals item 11 less 'Net Income Paid Abroad' after tax. Source: Development Commissioner's Office

94 NATIONAL INCOME AND MANPOWER

TABLE 14

GROSS CAPITAL FORMATION 1948 to 1951 (in million dollars)

1948 1949 1950 1951 BY INDUSTRY: Agriculture and forestry ...... 4.8 5.0 4.8 6.3 Mining ...... 3.3 2.4 3.6 3.3 Manufacturing ...... 5.8 1.9 2.3 3.3 Construction ...... 0.2 0.4 0.2 0.7 Public utilities ...... 0.9 0.6 0.6 0.6 Commerce and finance ...... -0.2 0.9 2.2 1.2 Transport & communications ...... 2.2 2.5 3.2 5.7 Housing ...... 5.0 5.5 6.0 6.2 Other and unclassified ...... 3.8 4.4 3.0 7.4 TOTAL ...... 25.8 23.6 25.9 34.7 BY AGENCY: Central government ...... 3.4 4.9 5.7 8.1 Local government ...... 0.4 0.5 0.5 0.6 Sugar companies ...... 4.4 5.3 4.1 3.6 Bauxite companies ...... 1.5 1.2 1.9 2.5 Other mining cos., etc ...... 1.9 1.3 1.7 0.8 All Other ...... 14.2 10.4 12.0 19.1

Source: Development Commissioner's Office

95 TABLE 15

CAPITAL STRUCTURE OF BRITISH GUIANA 1951 (in million dollars)

Other Machinery Buildings Structure and Plant Vehicles Other Total % Distribution Agriculture antd Forestry 20 Sea defenses 20 41 18% Drainage and irrigation 36 5 Other ...... 5 4 10 10 19 48 } Mining 449 Bauxite ...... 4 7 24 7 2 6 /0 Other ...... 1 2 3 Manufacturing 82? 17% Sugar ...... 7 1 72 1 1 17 t Other ...... 7 9 1 Public Utilities 6 4°? Electricity ...... 1 2 3 19 4t9 Other .18 1 2 24 4%o Commerce and Finance ...... 21 1 Transport and Communication 38 12,% Road and railways ...... 1 29 8 33 Other ...... 416 2 10 1 Housing ...... 175 175 30% Miscellaneous ...... 29 1 1 1 6 38 6%o

Total ...... 255 134 129 38 38 591 100 % Distribution ...... 43% 23% 22% 6% 6% 100 100

Source: Development Commissioner's Office L

0 APPENDIX [I

Finance and Foreign Trade

I. Currency System In August, 1951, the British Guiana currency notes then in circulation were withdrawn. They were replaced by notes of the Eastern Group (Trinidad and Tobago, the Leeward and Windward Islands and British Guiana) of the British Caribbean colonies. The combined issue is under the administration of a Currency Board. The notes are fully convertible into sterling; they are backed 100% by sterling reserves which are held in cash or are invested in Com- monwealth securities. The British Guiana share of the issue amounted to $10.9 million at the end of 1952. There are no central banking facilities in British Guiana, nor is there a local bill market. As a consequence, it is necessary for the government to hold sufficient cash reserves to cover any temporary revenue shortfall.

lI. Foreign Trade atnd Balance of Payments

A. EXPORTS

The pattern of exports is simple; it reflects the colony's limited number of exports and its position as a trading partner in the Com- monwealth. Sugar and its by-products (including rum), rice and bauxite accounted for 90%'o in value of British Guiana's exports in 1952. Sugar is shipped for the most part to Canada and the United King- dom, the latter taking 55%o of the total; rice goes almost entirely to the British Caribbean area, and 90%o of the bauxite to Canada. The remaining bauxite goes to the United States and the United Kingdom. The other 10% of exports, largely gold, diamonds and timber, go very largely to the United Kingdom. 98 FINANCE AND FOREIGN TRADE

Exports have risen sharply in recent years, as indicated in Table 16. TABLE 16

EXPORTS 1947-1952 (in million dollars) Gold and Sugar Rice Bauxite Diamonds Others Total 1947 21.6 2.3 6.7 1.4 2.6 34.6 1948 20.4 2.1 9.5 1.9 2.7 36.6 1949 26.3 3.1 12.0 1.8 2.7 45.9 1950 27.4 4.0 13.8 1.9 3.0 50.1 1951 31.2 4.4 16.4 2.2 4.0 58.2 1952 45.6 6.3 22.2 2.4 4.3 80.8 Between 1947 and 1952 exports of sugar increased from 185,000 tons to 234,000 tons, rice from 20,000 tons to 28,000 tons (a decline from the high of 31,000 tons in 1951) and bauxite from 1,290,000 tons to about 2,300,000 tons.

B. IMPORTS Imports have increased from about $42 million in 1947 to $81 million in 1952. There is a close but not complete correlation between the value of imports and exports. As exports increase, local incomes increase and hence imports, but the value of imports is additionally affected by the amount of external grants and loans going to the colony, as well as by the volume of investment from overseas. As might be expected, imports are of great variety. More than 70% consists of manufactured and semi-manufactured goods, ranging from cotton manufactures through vehicles to machinery, equipment and metal manufactures. A further 23%o consists of food, drink and tobacco, and the remainder is raw materials, predominantly petroleum. In 1952, the principal supplier was the United Kingdom ($33.2 million). Canada and the United States supplied $12.8 and $13 million respectively. India and the British West Indies were the two other major suppliers.

C. BALANCE OF PAYMENTS In Table 20, there is a breakdown of the balance of payments for 1948-51. The table indicates that imports exceeded exports in each 99 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA of these years. The principal balancing item was the net inflow of capital to the colony. This inflow has, year by year, substantially exceeded both the outflow of profits transferred and the excess of imports. While, for the four-year period, there was an excess of merchandise imports over exports of $28.6 million, and an outward transfer of profits of $19.8 million, loans, grants and direct investments flowing to the colony amounted to $67.4 million. The difference between the two totals corresponds to the outflow of payments for services and the investment of local savings outside the colony. While no complete estimate of the dollar balance of payments is available, the mission estimates that in 1951 the balance of payments with Canada and the United States together, showed a surplus on current account of B.W.I. $16 million, and on capital account of B.W.I. $2.5 million.

III. The Banking System

A. COMMERCIAL BANKS The two commercial banks, one British and one Canadian, follow conservative policies which maintain an exceptional liquidity, but limit their role in the development of the economy. Although the two banks held total assets of about $24 million at the end of 1952, the great bulk of their funds was deposited or invested outside the colony. Short-term commercial, industrial and agricultural loans within the colony totaled only $6.5 million; the banks held no securities of the colonial or municipal governments. Rates of interest, geared to London market rates, are reasonable, but the range of lending operations is narrow. Loans are generally fully secured and are, for the most part, short-term commercial or crop- moving and working capital loans. It is difficult to assess the cause of the narrowness of operations; one reason appears to be that the major overseas enterprises working in the colony are well supplied with their own working capital or raise needed funds in London, while colonial government enterprises are financed directly by the government. Further, there is no bill market in the colony, nor any very substantial money market to provide an outlet for short-term bank funds. It is notable, however, that whereas only 277o of commercial bank assets, which consist for the 100 TABLE 17

CONSOLIDATED ASSETS AND LIABILITIES OF THE COMMERCIAL BANKS Dec. 31, 1952 Liabilities Assets Notes in circulation ...... $ 121,497 Cash...... C...... $ 3,136,785 > Deposits Balances due from other banks .1,260,859 ti a) Demand ...... $13,481,961 Balances due from banks abroad .11,121,705 .. b) Time ...... 609,945 Loans and Advances > c) Savings .7,886,284 21,978,192 a) Industry ...... $ 990,283 b) Agriculture .1,024,579 Balances due to c) Other .4,481,664 6,496,526 t a) Banks in colony ...... 660,441 b) Banks abroad ...... 28,060 688,502 Investments . .nil Other liabilities . . .1,205,203 Others assets . .1,977,518 t

$23,993,394 $23,993,394 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA most part of local deposits, are invested locally, similar banks in Jamaica, operating under rather closely parallel conditions, have two thirds of their assets invested in that colony. Among their holdings are Jamaican government securities amounting to 10 o of their assets. The commercial banks hold nearly $8.5 million of savings and time deposits, slightly over half the amount held by the Post Office Savings Bank. B. POST OFFICE SAV1NGS BANK In Chapter 4 reference was made to the effective and efficient Savings Bank managed by the Post Office, which now holds 109,000 savings accounts in a colony of 450,000 population. Many accounts are small and dormant, but those which are active number 80,500, a remarkably high figure. No more than 2,500 of these accounts are held by government, business, credit union, friendly society or other institutions; the remainder are held by individuals. The Savings Bank operates at a small profit arising from the difference between its rate on deposits (2.4% ), and its operating costs and the prevailing return on its securities. Both its staff of 26 persons, and its operating costs (slightly over 1/2 of 1 % ) are extremely small. The growth of deposits since 1945 has been steady and continuous. 1945 - $ 9.9 m. 1946 - 11.2 m. 1947 - 11.5 m. 1948 - 12.2 m. 1949 - 13.2 m. 1950 - 13.8 m. 1951 - 14.5 m. 1952 - 16.0 m. The number of depositors has increased from 79,800 in 1948, to 109,000 in 1953. Table 18 indicates individual holdings. The mission's recommendations on the role of the Savings Bank in British Guiana's development, and certain improvements in their operations, were given in Chapter 4.

C. AGRICULTURAL COOPERATIVE BANKS The present agricultural cooperative banks play only a relatively 102 FINANCE AND FOREIGN TRADE small part in agricultural development. Loans outstanding at the end of 1952 amounted to $729,000. The banks operate under a policy of fully secured loans, with a low maximum loan. Their role is discussed further in the technical report on agriculture. There are few other credit facilities in the country for productive enterprise, except for building.

IV. Government Revenue Since Chapter 2 described in some cletail government receipts and the direction of expenditures in the postwar period, this section will consider only the sources of government revenue.

A. DIRECT TAXATION Present rates of income taxation on both corporate enterprises and individuals are relatively high, although below rates in the United Kingdom. The corporate rate for other than life insurance companies is a flat 45% (for insurance companies 15%), while individual income tax rates range from 6% on the first $1,200, and thence on an upward sliding scale to 60,% on incomes in excess of $10,800. The usual allowances for depreciation are given to corporations, and minimum and family exemptions to individuals. Corporations establishing or developing industries of a risk-bearing nature are given income tax exemption for a period of five years. As far as United Kingdom companies are concerned however, this concession is offset by the fact that they are still subject to the United Kingdom income tax. The situation is at present under review by H. M. Government. The government estimates income tax receipts for 1953 at $8,750,- 000, or about 27% of total revenue. No estimate is available of the proportion to be collected from corporations but it is believed that it will be at least $7 million, or about 80% of all income tax receipts. The corporate tax, largely borne by overseas corporations which have invested in the colony, is probably fully collected, since these corporations follow closely the letter and spirit of the local laws. There appears to be scope for improving the collection of the individual income tax, which is more easily evaded than the corporate tax. The mission believes that some strengthening of the staff of the Income Tax Office would produce additional revenue. 103 TABLE 18

DISTRIBUTION OF ACCOUNTS POST OFFICE SAVINGS BANK End of 1952

Not ex. $3.01 $ 5.01 $ 50.01 $100.01 $ 500.01 $1000.01 Total ¢ ceeding to to to to to to Exceeding Number of $3.00 $5.00 $50.00 $100.00 $500.00 $1000.00 $5000.00 $5000.00 Accounts

Active Accounts ...... 24,530 5,385 22,860 6,605 14,020 3,593 3,127 423 80.543 =

Q Inactive Accounts (await. v ing transfer to mechanized system) 12,128 12,128 499 911 65 65 6 3 2 13,679 t

Inactive Accounts under $1.00 ...... 15,395 15,395 :

TOTALS ...... 15,395 36,658 5,884 23,771 6,670 14,085 3,599 3,130 425 109.617 >

Pcrcentage of total number of accounts ...... 114 % 33.4% 5.4%o 21.8% 6% 13% 3.2 %o 2.8%, .4%0

Source: Postmaster General FINANCE AND FOREIGN TRADE

The rate of death duties is relatively high but the collections are low, because much of the property is held abroad, and, in consequence, is outside the jurisdiction of the colony.

B. CUSTOMS AND EXCISE Customs revenue and excise tax receipts together are estimated to amount to $16.8 million for 1953, or to about 55% of government revenue. Approximately $12 million is from customs duties, while another $3.6 million comes from excise taxes and license fees, most of the latter coming from the duty on rum. The remainder comes from an export tax of $1.2 million on bauxite, paid by the bauxite mining companies, in addition to their income and other taxes. Costs of collection of customs and excise, which are estimated at 1.84%o for 1953, are low in comparison with many countries and indicate a generally efficient system of collection.

C. OTHER SOURCES The government, in addition to its receipts from the posts, telephone and telegraphs, has numerous miscellaneous sources of revenue, including various stamp duties, fees, and royalties, and the rental and sale of crown lands. For the most part, these are individually small, but collectively they amount to nearly $5 million, or to nearly 17%o of total revenue. V. Internal and External Debt The internal and external debt is substantial, but because of the favorable terms on which the colony has been able to raise "trustee stock" loans in London, the debt imposes only a moderate annual burden on the colony's budget. At the end of 1952, internal loan issues amounted to $6,424,100, and external loans (including CDW and CDC loans) to $30,556,557, a total of $36,980,657 in outstanding indebtedness. In addition, the government in March, 1953, contracted a further loan of $5 million to finance the British Guiana Rice Development Company, and an additional $1.2 million for its working capital. The $5 million loan is to be drawn down in instalments over the next five years, and the last instalment is to be repayable five years .after it is taken. A part 105 TABLE 19

OUTPUT, INCOME AND EXPENDITURE 1951

(in million dollars)

DISPOSAL OF GROSS OUTPUT Gross CURRENT ACCOUNT Out- FIr- Ca FIRM put For- - 2.4 0.2 - 1.7 0.2 0.2 - - - - 0.1 _ at eign 0 Per- Gov- 4 . 0 - -1 - -o-~ C- Mar-sMa-count 19.6 countAc-18.60.Ac- sons menter- To-~T- 0a. - 0. -a --- ts 0 Prices talP q

HOME PRODUCTION: ______

Agriculture ...... 40.7 0.1 0.4 9.9 - 30.3 0.9 - 29.2 - - . - 0.1 0.1 Forests ...... 4.8 1.8 0.3 0.3 - 2.4 0.2 - 1.7 0.2 0.2 - - - 0.1 Fisheries ...... 4.0 - - 4.0 ------Mines ...... 19.6 18.6 0.1 - - 0.9 - - 0.3 0.6 ------Manufacture .79.3 38.6 3.6 27.4 0.2 9.5 0.6 0.2 2.0 4.2 - 1.1 0.6 - 0.4 0.4 > Construction .28.4 - 23.5 - 1.5 3.4 0.2 0.1 0.1 - - 0.3 0.2 2.0 0.5 - Public utilities .2.0 - - 0.8 0.7 0.5 - - 0.2 - 0.1 0.1 - - - 0.1 z Commerce and finance . 40.1 2.2 - 1.0 - 8.6 3.9 0.2 3.9 - - 0.3 - 0.2 - 0.1 > Transport and communications .11.1 2.0 - 3.4 0.5 5.2 - 0.1 0.2 - - 4.8 - - 0.1 - p Rental of dwellings .9.9 - - 9.9 ------Community & business services .9.5 - - 2.7 6.5 0.3 - - 0.1 - - 0.2 - - - - Personal & recreational services ...... 8.9 0.1 - 8.6 - 0.2 - - - - - 0.1 - - 0.1 - Q Unclassified .0.4 0.2 - - 0.2 - - x ------

IMPORTS: Goods .- 67.9 6.8 47.5 0.3 41.6 4.9 3.5 17.1 11.1 0.6 1.0 2.4 - 0.8 0.2 Services .- 6.0 - 4.7 0.2 1.1 - - 0.1 - - 0.6 0.2 - 0.2 -

DEPRECIATION ...... - - -8.2 - 0.7 7.5 0.8 0.9 2.4 0.1 0.5 0.4 0.8 1.2 0.3 0.1 TAXES, ETC.: Taxes ...... 5.5 - 2.2 -21.3 13.6 0.2 - 3.1 - - 9.1 0.1 0.9 - 0.2 Subsidies, subventions ...... - - - -0.8 3.5 -2.7 -0.6 - - - - -0.1 -1.9 - -0.1 - Fines, fees ...... - - - 0.8 -1.6 0.8 - - 0.1 0.1 - 0.5 - - - 0.1 Grants from abroad ...... - 1.3 - - -1.2 -0.1 ------0.1 - FACTOR PAYMENTS: Industry.- -12.3 - 1288 -1.6 135.6 38.4 14.6 18.8 12.1 0.6 21.7 8.7 5.6 7.2 7.9 Government ...... -. 0.3 -J 6.8 ------SAVINGS/INVESTMENT ...... - 15.5 -26.5 6.4 4.6 ------

GROSS OUTPUT AT MARKET PRICES' ...... 258.7 - - - - 258.7 49.5 19.6 79.3 28.4 2.0 40.1 11.1 9.9 9.5 9.3 i o 'Market value of output including value of purchases from other firms. Source: Development Commissioner's Office TABLE 20

BALANCE OF PAYMENTS (in million dollars)

1948 1949 1950 1951 Credit Debit Net Credit Debit Net Credit Debit Net Credit Debit Net R A. CURRENT TRANSACTIONS I. MERCHANDISE EXPORTS Q (f.o.b) & IMPORTS (c.i.f.) ...... 37.7 48.2 -10.5 47.1 51.8' -4.7 51.8 56.4 -4.6 59.6 68.4 -8.8 II. SERVICES ...... 3.4 3.6 -0.2 3.6 4.8 -1.2 3.8 5.0 -1.2 4.7 6.0 -1.3 Foreign travel ...... 0.2 1.9 0.2 2.7 0.2 2.7 0.2 3.4 Harbor services, shipping & o other transport services 1.6 1.7 1.8 2.2 ° Other services (education, insurance, commission agents, etc.) ...... 1.6 1.7 1.7 2.1 1.8 2.3 2.3 2.6 III. INVESTMENT INCOME ...... 1.2 3.4 -2.2 1.3 6.2 -4.9 1.4 6.6 -5.2 1.5 8.0 -6.5 Profits, dividends & interest from private investment ...... 0.4 2.6 0.4 5.3 0.5 6.0 0.6 7.4 to Interest on government funds & special trust funds, etc ...... 0.8 0.9 0.9 0.9 Interest on public debt 0.8 0.9 0.6 0.6 c, IV. GRANTS FROM UNITED KINGDOM & OTHER CON- C) TRIBUTIONS ...... 2.3 +2.3 1.5 +1.5 1.2 +1.2 1.3 +1.3 Cx

TOTAL CURRENT TRANS. ACTIONS ...... 44.6 55.2 -10.6 53.5 62.8 -9.3 58.2 68.0 -9.8 67.1 82.4 -15.3 2 B. CAPITAL TRANSACTIONS Private direct investment 12.2 10.2 8.6 18.6 Loans to government ...... 0.2 0.1 0.1 10.5 Government funds and special trust funds . .2.2 2.5 2.4 6.8 Post Office Savings Bank 0.7 1.1 0.5 0.9 Currency Board . .1.6 0.3 0.4 2.5 Commercial banks ...... 0.2 1.8 0.2 1.7 TOTAL CAPITAL TRANS- ACTIONS ...... 12.6 4.5 +8.1 14.6 1.4 +13.2 11.1 1.1 +10.0 29.1 11.9 +17.2 C. ERRORS & OMISSIONS +2.5 -3.9 -0.2 -1.9

' Includes Post Office Savings Bank and Currency Board. 'Includes purchase from United States Air Base .9. Source: Development Commissioner's Office

0 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA of the funds will be used to repay previous advances from the government's cash reserves. Accumulated sinking fund payments on loans previously contracted totaled $4 million at the end of 1952. Payments for interest and sinking fund, and the small equated annuities of the railway perpetual stock, are estimated at about $1.9 million in 1953. They are expected to decline very slowly to about $1.8 million in 1962. Thereafter they decline more rapidly, and by 1971 they should fall to about $900,000 on the present indebtedness. Because of the favorable terms on which the colony has borrowed in London, average interest and sinking fund charges per year on the present debt amount to only 5% of the total debt, and to 6% of the estimated revenue for 1953. Even at the current interest rates prevailing in 1953, the government should be able to carry up to $15 million in additional indebtedness over the next five years, to finance that part of the recommended development program which cannot be met from government revenues and other related sources of financing.

110 Agriculture

CHAPTER 11

Agricultural Background

I. Historical Development From the first, agricultural development in British Guiana has had to overcome unfavorable natural handicaps. The fertile land-so far as is known from still incomplete surveys-is found mainly in a small strip along the coast and on the inland banks of a few large rivers. Much of the coastal land lies below the high water mark; it has had to be reclaimed and protected from the sea by costly dykes and drainage works. The Dutch introduced farming at the beginning of the seventeenth century; some food crops, tobacco and sugar were grown at first, and cacao and coffee were introduced later. Probably for security as well as for easier natural drainage, the Dutch established their plantations well inland along the banks of the Essequibo, Demerara, Berbice and Corentyne rivers. Here land above tide level forms a narrow strip, a few hundred feet to several miles wide. Behind the banks the land slopes downward; but for a depth of one to five miles drainage into the river is still possible, and at one time this land was also cultivated. The gradual abandonment of these estates after the middle of the eighteenth century may have been prompted by land exhaustion. By comparison, the coastal soils were undoubtedly more fertile and probably less infested with malaria. The original by-passing of the coastal lands must be attributed to the fact that their exploitation called for technical methods which were then lacking. With the introduction of the polder system' a shift to the coast became feasible. Most of the river-bank estates were deserted, to revert to secondary forest growth. Today, although many traces of them are still seen, the agricultural census of 1952 indicates that only 5%o of this area is now under cultivation.

' A widely-used method of reclaiming low land from the sea by means of dykes or walls, allowing water to be drained at low tide and excluding the sea at high tide. 113 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Considering the technical means existing at the time, the construction of polders in the forests and marshes of the coastal zone was a gigantic achievement. Indeed, it was made possible only by a steady flow of slaves from Africa. With it came a crop shift, and "to the very end of the eighteenth century coffee and cacao were still predominant (on the new polders) * * * * whose extremely fertile reclaimed lands were, owing to their salt content, regarded as unsuitable for cane."2 The reasons for later abandonment of these crops throw light on the prospects for diversification of production which present economic conditions make so desirable for the colony. It appears that, for various reasons, these crops became unable to compete in foreign markets. The abolition of slavery in 1834 and of colonial preference in 1845 administered the coup de grace. Coffee and cacao production steadily declined, leaving a virtual sugar monoculture from 1840 until the beginning of the twentieth century. Annual production of sugar rose gradually from 32,000 tons (1841-1845) to 116,000 tons (1901-1905) and reached 242,700 tons in 1952. Over the period from 1841-1952 the population grew from 98,000 to 450,000. Up to 1921 this increase was largely due to a constant influx of East Indians who were originally brought over to compen- sate for the manpower shortage resulting from the abolition of slavery. This had pronounced effects on agriculture. Although sugar production increased, technical improvements brought about a decrease in the acreage under cane.3 Rice growing began toward the end of the nineteenth century, on abandoned sugar land which was rented to East Indian farmers and, on the part nearest the coast, coconuts were planted. By 1918, rice cultivation covered 57,000 acres; it had attained over 95,780 acres in 1950, and today (1952 census) occupies some 134,000 acres. Coconut palm acreage grew from 22,450 in 1938 to 34,000 in 1945, but has since diminished; the 1952 census indicates 25,650 acres of coconuts in large estates, with about 5,640 acres in scattered family farms and housing settlements. Rice growing, in 2Report of a commission of inquiry into the sugar industry of British Guiana; H. M. Colonial Office, London, 1949. s Cane acreage fell from 80,000 acres at the end of the nineteenth century to between 50,000 and 60,000 during the depression of 1921-26. About 72,000 acres are now reaped each year. 114 AGRICULTURAL BACKGROUND particular, has been carried on mainly by small farmers (tenants or landowners), and until now has absorbed most of the excess manpower resulting from the increase of population and the rationalization of sugar production. Meanwhile, the sugar industry, in order to offset the handicaps imposed by natural conditions, has continued to introduce technical improvements, and the number of sugar estates has been reduced, mainly by amalgamation, from an earlier 400 to 17 at present.

II. Agriculture Today Over the years some of the estates in the narrow coastal strip have been abandoned because of soil depletion, poor drainage, expansion of village settlements or other reasons, while new lands farther inland have been brought under cultivation. Nevertheless, agriculture in British Guiana today is still almost wholly concentrated in a narrow band along the eastern part of the coast, between the Essequibo and the Corentyne rivers, and extending inland from two to eight miles. In this small area are to be found 98% of all farmers, 96%o of the total acreage under crops, and all of the sugar estates. With a seasonal rainfall as high as 80-120 inches per year on this low land, both drainage and irrigation present serious problems. Drainage by tidal differences cannot reach far inland; even some parts of the coastal strip cannot be drained satisfactorily, and in any event pumping is necessary on many of the sugar estates.4 Save for the higher sandy ridges devoted to coconuts, only rice can be grown in this area without expensive canals, ditches and sluices. Moreover, the physical conditions, together with the extremely heavy soil of the coastal plain, make mechanized cultivation difficult. Behind the coastal strip there is a great expanse of swampy land, used partly for cattle grazing during the rice season, and partly for so-called conservancies (reservoirs for irrigation water) for the sugar estates-the remainder is waste land. Additional land for cultivation must be found here, but this will be possible only by means of very expensive drainage and irrigation works, some schemes for which are already projected. The capital cost for reclamation of this land is estimated to be from $120 to $150 per acre, while the yearly main- 'For a more complete discussion of this problem and its technical aspects, see Chapter 14 and Appendix I. 115 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA tenance costs would be about $10 to $15 per acre. Such projects, however, provide land suitable only for rice. South of the estuaries the "riverain" lands used in the old Dutch days, but now overgrown with bush, offer renewed promise. Here clearing would be expensive but drainage cheap, so that total reclamation costs are estimated to be about the same as for the coastal backlands. Agricultural possibilities on this land, moreover, are considerably greater. In addition to rice and some vegetables, perennial crops (coconuts, fruit trees, cacao, bananas, and others) can be grown, while there are also possibilities for dairy farming. Because of absentee ownership, a lack of private initiative and capital, and the absence of an appropriate government policy, these lands lie waste and undeveloped. The vast Rupununi savannahs in the interior are used for cattle ranching. The land is extremely poor, however, and the carrying capacity is very low; production is little more than one steer per square mile per year. Other potential ranch lands exist in the intermediate savannahs in the Ebini region, but here the land is even poorer than in the Rupununi and, without expensive mineral feeding, cattle- raising is impossible. Today British Guiana has almost a dual agricultural economy. One part consists of the sugar cane estates cultivated by wage labor, exporting 90%o of its production and depending for its ability to compete in foreign markets on technological improvement and organization. The other is a peasant community composed of small- or medium-scale farm owners or tenants, mostly East Indian, whose predominant rice culture resembles in many ways that of Southeast Asia and raises many of the same technical and economic problems. According to the 1946 census, about 42% of gainfully occupied males and females in the colony were in agriculture-1 4 % as independent farmers and 28%o as farm laborers (mainly on sugar estates) who usually also have small subsidiary farms. Of the estimated gross national product of the colony for 1951-valued at $151 million- the agricultural industry, including sugar-processing and rice-milling, contributed 37%o. An estimate of the 1952 gross income per capita of the population directly engaged in agricultural production indicates a figure of $226 per year for 183,000 persons if, for the sugar industry only, wages 116 AGRICULTURAL BACKGROUND paid to field and factory workers are included. A similar estimate for 1938 came to $86. For 1952 the income index, with 1938 as 100, amounted to 263, while the cost-of-living index had increased to 267. Thus despite increased production and increased acreage under cultivation, the average standard of living in agriculture showed no improvement.

III. Production

Agricultural production is extremely one-sided: 68% of total revenue is derived from sugar cane, 16% from rice, 8%o from animal products, and 87o from all other crops, including coconuts, fruits, ground provisions, coffee and cacao. This imbalance is reflected in the structure of foreign trade. In 1952 total exports amounted to $80.8 million, of which sugar and molasses accounted for 54%, or $43.7 million, and rice, the only other important agricultural export, for 8%, or $6.4 million. On the other hand, foodstuffs were imported to a total value of $15.6 million, or 19% of all imports. About 30%7 of the total caloric intake and 46% of the protein intake was derived from imported foodstuffs. In comparison with 1938-39, the total production of sugar, rice, fruits, ground provisions (yams, cassava, sweet potatoes and plantains) and meat has increased in recent years, but production per head has risen only for rice, ground provisions and fruit. Table 21 gives comparative production estimates. There has been a decrease in the production of copra, milk and meat per head of population. Analyses and reports cited elsewhere (Chapter 16) indicate that there is no need for more than a normal expansion of the production of ground provisions to keep up with the growth of population. But there is need for greater production of livestock feeding materials, in order to increase the output of meat and milk and to reduce their costs. Taking the various circumstances into account, and for supplementary reasons to be discussed in greater detail, it appears to the mission that agricultural development for the next five years should concentrate on. 1. Improvement of the coastal strip now under rice and coconut cultivation and expansion of rice growing on the backlands, 117 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

2. Reclamation of the riverain lands for mixed farming (rice, tree crops, vegetables, and dairy farming), and 3. Development of the savannahs for ranching.

TABLE 21

PRODUCTION OF PRINCIPAL AGRICULTURAL PRODUCTS (in 1000 tons) (in pounds per capita) Average Average 1938-39 1946 1950 1952 1938-39 1946 1950 1952 Sugar ...... 192.8 171.0 195.7 242.7 1262 1001 1012 1184 Paddy ...... 68.8 107.5 102.9 123.5 450 629 532 603 Copra ...... 8.6 6.4 7.3 5.9 55 42 37 29 Fruits ...... 1.6 5.7 7.7 8.2 10 33 40 42 Ground provisions.. 18.0 25.0 24.4 27.0 110 146 125 132 Milk ...... 9.6 10.0 10.3 9.7 63 59 53 47 Meat ...... 2.9 3.6 3.8 3.7 19 21 20 18

Source: Department of Agriculture; 1952 figures from agricultural census data.

118 CHAPTER 12 Factors Conditioning Agriculture

1. Climate

British Guiana has an equatorial climate, with two rainy and two dry seasons a year over most of the area, except in the Rupununi savannahs, where there is only one rainy and one dry season. The annual mean precipitation over 61 years (1890-1950) is 90.25 inches for all stations in the coastal zone. Precipitation increases regularly along the coast from southeast to northeast, as seen from the following figures: County of Berbice (mean 1890-1950) 80.40 inches of rainfall County of Demerara (mean 1890- 1950) 89.94 Botanic Garden, Georgetown (mean 1880-1950) 91.65 County of Essequibo 100.38 N. W. District Morawhanna (35 years) 111.37 Hosororo (21 years) 111.76

Rain is even more abundant in the forest zone of the peneplain as far as the escarpments of the Pakaraima Mountains: Bartica (35 years) 93.83 inches of rainfall Potaro Police Station (35 years) 148.93 " " "

In the Rupununi savannah region of tropical climate, the annual precipitation is approximately 50 inches: Yupukari 46.69 inches of rainfall Dadanawa 58.51 " 119 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

In the coastal zone rainfall is distributed over 200 days of the year. The seasonal distribution is normally as follows: Long rainy season Mid-April to mid-August Long dry season Mid-August to mid-November Short rainy season Mid-November to mid-February Short dry season Mid-February to mid-April

Some 50% of the coastal rains occur during the long rainy season and 23% during the short rainy season. Periods of drought, with precipitation of less than four inches per month, are normally confined to the months of September and October, as seen in Table 22. In the Rupununi savannah 80%o of the rain occurs between the end of April and the end of September, and there is a very dry season from October to March. TABLE 22

MONTHLY RAINFALL RECORDS AT Two COASTAL BELT STATIONS (in inches) County of Berbice Botanical Gardens (Georgetown) Average of 61 years Average of 71 years (1890-1950) (1880-1950) January ...... 7.86 7.70 February ...... 5.59 5.49 March ...... 6.12 6.02 April ...... 6.90 6.56 May ...... 10.93 10.28 June ...... 11.13 13.04 July ...... 9.52 10.67 August ...... 6.24 6.72 September ...... 2.23 2.95 October ...... 2.16 2.93 November ...... 3.04 5.47 December ...... 8.68 12.11 Year ...... 80.40 89.94

Of special importance to agriculture is the fact that the annual rainfall often deviates widely from the mean. In Georgetown, with a 120 FACTORS CONDITIONING AGRICULTURE mean of 90.78 inches from 1880 to 1946 (66 years), there were 10 years when rainfall exceeded 110 inches and eight years when it was below 70 inches, the extremes ranging from 135.24 inches in 1893 to 59.05 inches in 1885. These irregularities occur mainly in the short rainy and dry seasons; at times one or the other fails to appear, with the result that there is either a very long dry spell or a very long rainy season, both disastrous to crops. On the lowlands of the coastal zone, irrigation is necessary for sugar cane, whose cycle of vegetation is from 12 to 16 months, and for seasonal crops which are planted during the short rainy season. Showers are frequent and particularly heavy during the second rainy season, so that dry crops require very good drainage. In the coastal zone there is little daily or yearly variation in temperature. In Georgetown the annual mean temperature in the shade is 800 Fahrenheit, the maximum being 84.40 and the minimum 760. The heat is tempered, however, by sea breezes and northeast trade winds. Mean annual relative humidity in Georgetown varies from 82% at 7:00 a.m. to 74.4% at 1:00 p.m. and to 80.8% at 6:00 p.m.

II. Geology.and Topography For agricultural discussion the 83,000 square miles of British Guiana fall into three natural regions: the coastal plain, the interior peneplain, and the Kaieteurian plateau of the Pakaraima Mountains. The coastal zone, 20 to 30 miles wide, consists of marine alluvium probably carried along the coast from the mouth of the Amazon by the sea current. Thin sandy littoral bands mark the lines of the old shore. In general the land is low, and when cultivated must be protected against tidal flooding. The interior peneplain is composed of a complex bed rock, of pre- Cambrian metamorphic and massive igneous rocks with basic intrusions forming dykes. Part of the bed rock is still covered by sediment deposited in the pleistocene to miocene periods. The peneplain as a whole presents a relief with soft undulations running towards the northeast, and descending from a 400 ft. elevation to 50 ft. near the coast. It is accentuated by ranges of hills running out from the Pakaraima Mountains. Most of these hills consist of remnants of basic igneous intrusions, principally gabbro and dole- rite. Their outcrops in the valleys of the principal rivers are marked 121 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA by rapids, which have hindered the penetration of settlers further inland. The mountainous Kaieteurian plateau, generally about 2,000 feet high but with peaks up to 8,600 feet, covers the west central part of the colony near the borders of Venezuela and Brazil. It is composed of sandstone and shales of sedimentary formation, traversed by intrusions of basic eruptive rocks which form ranges of hills.

III. Soils No systematic survey has yet been made in British Guiana to determine the nature, distribution and areas of the various soils throughout the colony. However, fairly good information about the soils of the coastal plain, obtained from on-the-spot observation and laboratory analyses, is available. Frontland Clays. Frontland clays, continuing the similar formation of Surinam, are particularly extensive between Berbice and Demerara. Toward the west the band grows thinner and the soils gradually deteriorate. In Essequibo County they are less fertile and the sand reefs more frequent, while pegasse soils are found nearer the coast. In the Pomeroon and the Northwest District, the soil of the coast is essentially pegasse. In the Northwest District a few hills, made up of granites and basic metamorphic rocks, rise here and there from the plain. The frontland clays, where they are found undisturbed, are covered with natural swamp and marsh vegetation in brackish water. Occur- ring over about 70% of the area cultivated in sugar cane, they have been the subject of numerous analyses and fairly thorough soil studies. On the plantations the topsoil (0-1 ft.) is a brown clay containing 50-60% clay. It is rather friable because of the presence of 3-5%o of fairly well-decomposed organic matter (C/N ratio about 10); ,the nitrogen content is 0.1 to 0.2%. The subsoil (1-2 ft.) is more a compact grey clay and shows red mottling. It rests on a grey-blue clay. The normal pH varies from 4 to 6, increasing with depth and passing the alkalinity sill at 1 to 2 ft. because of the presence of sodium chlo- ride. Some of this acidity is attributed to applications of ammonium sulphate without sufficient compensatory liming. Empoldering made possible the original desalting of these lands. The slight residual salinity of the soil, which is probably effectively 122 FACTORS CONDITIONING AGRICULTURE controlled by the practice of flood-fallowing, requires no protective measures. In the subsoil, however, this salinity is rather significant, since it exceeds 1,000 ppm on half of the lands in Berbice and Deme- rara. This explains the sensitivity of the crops (notably sugar cane) to the dryness of these lands. The calcium content is very low and that of magnesium very high. The phosphate content is also very low (less than 17 ppm), while the potassium is sufficient (136 to 235 ppm) but rather variable. Studies carried out in Surinam and French Guiana have revealed that these clays contain illite as well as kaolin. On these compact lands mechanical cultivation is often difficult. As the soils are very stiff, only very powerful tractors can stand up to deep plowing, and they tend to bog down in heavy weather. The superficial cultivation required by rice is more easily performed with medium-powered tractors. Variations in the fertility and suitability of the coastal clays for different crops are, in part, a product of history. On certain plantations sugar cane has been cultivated for nearly two centuries. The land received very little fertilization for the greater part of this period, until the more recent use of mineral fertilizers and the practice of flood-fallowing were introduced. In the eighteenth century, coffee, cacao, indigo and cotton were apparently able to thrive there, and occupied a part of the reclaimed areas. Crops now raised on the frontland clays are sugar cane, rice and- on old transformed cane fields-the coconut palm. The possibility of diversifying the crops by introducing soybean, maize, sorghum, cotton, jute or other plant fibers will depend primarily upon the effectiveness and the depth of the drainage. Pegasse Clay and Pegasse. These soils derive their name from the Spanish word pegajoso (slimy or spongy). In their virgin state they are covered with aboraceous fresh water swamp vegetation and are typically tropical peat soils. They are found mainly behind the coastal frontland clays in the depressions underlying the river banks, and they are particularly extensive in the Pomeroon and the North- west District. The friable black surface layer with a high content of organic matter varies in thickness from a few inches to a few feet. It rests on a layer of bleached white buttery clay, speckled orange. In the 123 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA topsoil the content of organic matter is between 5-8% on the average (with 50 to 60% clay) but may be as much as 80%. It is composed of plant residues decomposed under anaerobic (reducing) conditions. The C/N ratio is very high (15 to 20) and the total nitrogen content is 0.2 to 0.3%o. These soils are very acid (pH from 3 to 5, sometimes less than 3), and the acidity increases with the depth except when the subsoil is salty. This high acidity is accompanied by strong concentrations of active alumina, which is extremely toxic for plants. On cultivated soils the phosphate content is low (less than 10 ppm) and the potassium content variable (265 to 125 ppm). Newly cleared pegasse soils are reported to be fertile. Their suita. bility for crops depends essentially on the thickness of the humic-clay layer and the effectiveness of the drainage; their proper maintenance, in the absence of flood-fallowing, requires mineral fertilizers. About 25 % of the sugar cane plantations are on pegasse soils. A large percentage of such crops as maize,.cassava and tannia as well as nearly all the Liberica coffee crop come from these soils, principally in the Northwest District. Provided that Panama disease and other soil- borne diseases can be prevented, banana cultivation might be successful; the ramie fiber plant is another possibility. Pegasse soils quickly lose their fertility when cultivated. The organic matter decreases, causing a soil shrinkage. Consequently shifting cultivation is practiced, the fields being abandoned when exhausted. Experiments have shown that treatment with nitrogen or phosphate fertilizers, alone or in mixtures, considerably increases the yields of the exhausted pegasses, but they remain very much inferior to virgin pegasse. There is a possibility, which calls for research, that they lack certain trace elements. The pegasse soils are most suitable for rice cultivation when they do not have a very high content of organic matter. Otherwise, the shrinkage which they undergo when cultivated is an obstacle to good levelling, and the paddy is liable to lodging. In general, tractors do not operate here as easily as on the frontland clays. Riverside Silt. These soils cover the banks of the Demerara, Ber- bice, Essequibo rivers, and their principal tributaries in the coastal zone. Their level is generally above that of the surrounding lands, so that they are better drained. They have apparently been formed 124 FACTORS CONDITIONING AGRICULTURE by a process common to all the tropical rivers, through the deposit of alluvial material carried by the rivers at flood seasons. They thus constitute a thin fringe parallel to the banks, for the most part only a few hundred feet wide, but occasionally much wider. In their natural state they are covered by a swamp and marsh forest. Drain- age and leaching have given the soils a podzolic profile which indicates that the alluvial process which created them has long since ceased. The surface soil is a loamy clay, which is sandier than the frontlands clay. It rests on a more clayey subsoil which is orange or red and mottled or streaked. The composition of this alluvial deposit probably reflects the nature of the geologic bedrock of the upper basin of the rivers. Analytical data available on these soils are not as complete as for those previously described, but their contents of organic matter, potassium and phosphate appear rather low. They are acid (pH 4.5 to 5.5), and the acidity increases with depth. The river banks are under continuous cultivation only near the mouths of the principal rivers, where they are included in the perime- ter of the polders drained by these rivers. Elsewhere they bear a heavy bush broken by a few clearings of shifting cultivation. Their agricultural capacities, for the narrow range of crops economically possible in the colony, are still not very well known. Under intensive cultivation they would undoubtedly be rapidly exhausted unless suitable techniques were applied to maintain their fertility. The establishment of an experimental station to study their capacities and appropriate systems of cultivation is needed. It may be assumed that on well-drained banks, ground provisions, shrub crops such as cacao, and coconut palms around houses would be technically and economically suitable. Behind the banks, rice cultivation and improved pasture for dairy and meat cattle would probably also be feasible.

Reef Sand. These light sandy soils-ancient littoral formations -comprise only a few thin bands in the coastal clays. They are more extensive in the Corentyne. While suited to the coconut palm and to citrus fruits, they are essentially very poor in nutritive elements and are sometimes saline. They have limited economic importance. 125 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Sedimentary Rock Soils of the Interior. The most familiar of these are the white or brown sand soils formed on the granite gneiss bedrock or on the pleistocene sedimentary beds of the white sand series. The surface soil contains a large proportion of sand, more or less tinged with brown by organic matter, and it is very acid. The subsoil is generally a little more clayey and compact; like the surface soil, it tends to be deficient in most nutritive elements. Covering a large part of the forests or savannahs of the interior peneplain, these soils are said to be of no value for intensive agriculture. Easily eroded on the slopes as soon as vegetation is removed, they are more adapted to the shifting cultivation of the Amerindians or to extensive cattle ranching. Further study might show the better brown sands to be useful for tree crops. The thin fringe of recent alluvial soils is more fertile, but they are too limited in area to provide the basis for any important agricultural development. The soils resting on the lateritic ironstone carapace, developed on the different igneous rocks or the ancient alluvia deriving from these rocks, are infertile when the carapace is more than two feet, and are also very much subject to erosion. Igneous and Metamorphic Rock Soils of the Interior. According to the parent rocks, the texture of these lateritic soils is loamy or clayey and the color brown, chocolate or red. The subsoil contains concretionary red clay or ironstone. Depth of the bedrock varies with topography and erosion. In 1949 and 1950 studies were made of the soils in the Potaro and Issineru regions to determine the possibility of cacao development in the interior of the colony. The reports concluded that the soils are generally leached and poor in nutrients. They are formed on comparatively ancient rocks, and have been subject to intense weathering for long periods of time. However, the soils of the Kanuku and Marudi mountains in the southwest of the colony, developed under a tropical climate and with 60 inches of rainfall instead of 100, are less leached and are reputed to be more fertile. Soil Survey. Inadequate knowledge of the soils of the interior and the Northwest is one of the main obstacles to agricultural planning and development for the colony as a whole. This difficulty has been noted by previous missions studying the development of the interior. The problem will remain until there is a systematic soil 126 FACTORS CONDITIONING AGRICULTURE survey, which the mission believes should be undertaken as soon as possible. Such surveys give a general knowledge of the soils, their genesis, morphology, geographic location and properties. They determine the agricultural capabilities in the light of the characteristics of the soil, the risks of accelerated erosion and the climate. They are necessarily based upon the information provided by topographic, geologic and ecologic surveys. They are thus only a part of -the program of surveys needed for a general inventory and map- ping of the natural resources of the colony. Aerial photography has become an invaluable guide in making these maps. It facilitates the field operations of the surveyors and makes possible extrapolations which accelerate the work. It is recommended, therefore, that survey operations in the various fields be coordinated in a common program, and that they be based as far as possible on preliminary aerial photography of the zones to be prospected. For the soil studies themselves it is recommended that a team composed of a soil scientist, three soil surveyors, one topographical surveyor and one vegetation surveyor be engaged for a period of five years. This team should carry out a reconnaissance soil survey of the following areas: 1. River banks areas (first year) Sq. Miles Essequibo (South Bonasika) 80 Demerara (South of Wales) 80 Berbice (South Providence) 220 Corentyne (South Crabwood Polder) 60

Total: 440 2. Interior Areas (next four years) Potaro-Mazaruni-Issineru areas 10,000-12,000 Prospecting in the interior regions should have as its main objective an evaluation of the capabilities of the best soils for tree crops, especially cacao. It should be based on the preliminary surveys made in 1949 in order to define the zones most interesting for study. This soil survey might be organized within the framework of the British West Indies scheme, with the assistance of the Imperial Col- lege of Tropical Agriculture. Expenses for a five-year program are estimated at $350,000. The most serious problem may be that of 127 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA finding qualified specialists, for there are few soil surveyors and soil scientists trained for this work in tropical countries. Assistance may be available through international agencies such as FAO.

IV. Land Use Acreage. The total area of the coastal plain is 3,839,000 acres. Although this zone contains most of the colony's crops, only about 7.4% of it-282,800 acres-is under cultivation. No census has been taken of the shifting cultivation of food crops by the Amerin- dians in the interior, but this has been estimated roughly at 18,000 acres. Together the cultivated lands represent hardly more than 1/2 of 1% of the total area of the colony. In the coastal zone, in addition to the area under cultivation, there are about 400,000 acres carrying some 130,000 head of cattle. An- other 43,000 head of cattle on the savannah ranches of the Rupununi and elsewhere occupy approximately 2,450,000 acres. Taking these areas into account, nearly 60% of the total area of the colony is used for agricultural purposes, as follows: Coastal zone crops 282,800 acres Inland shifting cultivation 18,000 Cattle raising 2,850,000

Total agricultural land 3,150,800 As shown in Table 23, the acreage under cultivation has expanded steadily since 1937. The total area under crops in 1952 was 282,800 acres, an increase of 68% since 1938-39. Of the crops, only rice shows a notable increase both in total and per capita acreage. The other major crops have not kept pace with the growth of the population since 1946. In the expansion of rice production, less suitable lands have been brought under cultivation, and this has resulted in a substantial drop in the average yield per acre (see Appendix Table 57). Furthermore, the increase in rice acreage has had an adverse effect on the number of cattle, which has steadily contracted for lack of sufficient grazing ground. Size of Farms. The distribution of farms by sizes, as determined by the 1952 agricultural census, is given in Table 24. This, of course, 128 FACTORS CONDITIONING AGRICULTURE

includes subsidiary holdings. Perhaps the 21,836 persons listed in the agricultural census of 1952, as operators on more than two acres, can be taken as approximately the number of genuine farmers. It is evident enough that the average size of the farm is too small for a satisfactory living. TABLE 23 ACREAGE UNDER CULTIVATION Thousands of acres Acres per capita Average Average 1938-39 1946 1950 1952 1938-39 1946 1950 1952 Sugar cane' ...... 68.4 64.6 72.5 80.8 0.20 0.17 0.17 0.18 Rice2 ...... 57.6 85.6 93.6 134.0 0.17 0.23 0.22 0.30 Coconuts ...... 23.0 33.3 35.6 31.5 0.07 0.09 0.08 0.07 Ground provisions .. 14.0 19.4 17.5 21.41 Fruits ...... 1.6 5.4 7.4 7.99 0.05 0.08 0.07 0.08 Other crops ...... 3.2 4.0 4.3 7.2J Total ...... 167.8 212.3 230.9 282.8 0.49 0.57 0.54 0.63

Thousand head Number per capita Cattle ...... 133.6 189.4 185.0 174.1 0.40 0.50 0.44 0.39 Swine ...... 26.9 34.6 28.0 25.2 0.08 0.07 0.07 0.05 Sheep and goats ...... 44.1 65.4 55.9 55.1 0.13 0.17 0.13 0.12

Source: Annual Reports Department of Agriculture and Agricultural Cen- sus 1946, 1950, 1952.

'Including flood-fallowing. 2 Acreage of autumn crop. Farm Management. Large-scale estate agriculture has given way today to peasant farm management. Only sugar cane and a small part of the coconut plantations remain under the estate system. In 1952 more than 98% of the sugar cane was produced on the sugar estates. But with the exception of a few coconut estates, some ranches on badly drained lands, and the governmental Mahaicony-Abary mechanized rice development scheme, all other agriculture on the coastal belt is based on peasant farming methods, with some mechanization in the cultivation of rice. An indication of the trends in the farm management system of the colony since 1871 can be seen from Table 25, in which the shift from wage (estate) employment to independent farming is evident. 129 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

A common method of operating land holdings in the coastal belt is to lease the land in small lots (2-6 acres) to peasant farmers. Often the landlords are also the owners of the rice mills and storage bonds. In the Pomeroon district and the riverain lands, absentee ownership is common. Most of the absentee owners do next to nothing for the land and 95 %o of it is waste. TABLE 24

DISTRIBUTION OF FARMS BY SIZE' Under 2.0- 5.0- 10.0- 24.9- Over County Total 2 4.9 9.9 24.9 99.9 100 Acres acres Coastal Belt ...... 27,675 6289 8462 6645 4228 1521 530 N. W. District.. 336 62 15 30 139 84 6 Bartica-Potaro.. 140 - 15 97 26 - 2 Rupununi ...... 36 - - - 11 11 14 Total ...... 28,187 6351 8492 6772 4404 1616 552 Percent of number over 2.0 acres 38.9 31.0 20.2 7.4 2.5 21,836 Source: 1952 census. ' Excluding the sugar estates, but including the laborers cropping a single acre on such estates.

The figures for the Counties in the Coastal Belt are: Berbice Demerara Essequibo 2-4.9 acres ...... 40.8%S 42.1%2 33.7% 5-9.9 acres ...... 29.9%o 28.1%G 37.4%o Over 10 acres ...... 29.3% 29.8%o 28.9%S Methods of Land Use. Permanent cultivation of the coastal zone is generally based on monoculture. On the large estates this takes the form of sugar cane or coconut palms, and on peasant farms that of rice fields with one or two crops a year. Sugar cane is cultivated in a very intensive manner, and by methods which retain or improve the fertility of the soil. This is done by the use of mineral fertilizers, together with the practice of flood-fallowing once every four or five years. 130 FACTORS CONDITIONING AGRICULTURE

On peasant farms a combination of land cultivation and animal husbandry (mixed farming) is very loosely practiced. The cattle graze on the fallows after the harvest, and roam the waste lands during the farming season. The rice lands under the single crop system apparently keep their natural fertility without special manuring or the use of fertilizers, although this is not always the case with double cropping. Shifting cultivation, which in many tropical countries poses an acute problem of soil conservation, is of only minor importance in British Guiana. This system is practiced for ground provisions by Amerindians who are widely scattered on the uplands of the interior and in the Northwest District. On the coast land, some ground provisions are produced by shifting cultivation on pegasse soil of the Pomeroon-Northwest District.

TABLE 25

OCCUPATION OF GAINFULLY EMPLOYED POPULATION (in thousands)

1871 1881 1891 1911 1921 1931 1946 1952 Farmers, Mgrs. etc. 1.8 2.2 3.1 8.2 7.2 22.9 19.3 21.8 Agricultural laborers ...... 98.3 108.2 105.4 98.3 77.7 51.8 40.8 36.2 Total all occupations ...... 137.0 167.5 183.6 191.1 178.4 146.7 146.2 160.7

Expanding rice cultivation has pushed the cattle pastures back from the coast, and has endangered livestock development. In addition to animal husbandry on small farms, there is large-scale ranch breeding for meat production in the inland savannahs of the Rupununi by one large company (The Rupununi Development Company) and by a small group of independent ranchers. Here the total occupied area is about 2.4 million acres which produces about 1,266,000 lbs. of beef (dressed carcass weight) or only 0.53 lbs. per acre. The ranchers appear reluctant to put in the capital required for improved management, since it can give but a marginal profit while the risks are substantial. Ranching provides a living for only a few people and its expansion, although needed to improve the diet of the population, cannot add substantially to employment. 131 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

A large part of the land under cultivation in the coastal zone enjoys the benefit of drainage systems provided through the old polders. But complete water control-the basis for intensive farming on these low- lying clay soils-can be satisfactorily assured only on the sugar cane plantations (thanks to pumping apparatus), on some of the coconut lands, and on perhaps a third of the 130,000 acres of rice fields. In recent years, mechanization has been increasingly applied to the sugar cane plantations in order to save labor and improve yields. It has also been introduced in the rice fields, both in the Mahaicony/ Abary Rice Development Scheme and on some of the larger East Indian farms. But in many rice areas, mechanization is too expensive for the size of the land to be cultivated. In the countries of Southeast Asia-where the rice cultivation is very similar to that of British Guiana-a 10-acre rice field, yielding 2,000 lbs. per acre, can be worked successfully by a family with the help of two oxen or buffalo. The present rapid expansion of mechanized rice-growing on poorly drained lands, under hazard of flood and drought, tends to subject production to serious risks.

132 CHAPTER 13

Main Lines of Production

I. Sugar Cane

Of the total tonnage of sugar cane produced in British Guiana,' only 2,% is supplied by small farmers; 98% is produced on large estates with wage labor. The estates, 17 in number, cover 155,000 acres, and 11 of them range from 8,000 to 13,000 acres in area. Cane cultivation itself accounts for some 72,000 acres, while, in addition, as much as 15,000 acres may lie under flood-fallowing in preparation for replanting. Of the remaining estate area, waterways occupy about 24,000 acres, pasture 25,000, and the rest is given over to rice fields, ground provisions and dwelling areas. The cane is processed in 15 mills with a combined capacity estimated at about 275,000 tons of sugar. In 1952, exports of sugar, molasses and rum amounted to $45.6 million, or 56.4% of the total value of exports of the colony. Of the total agricultural production-valued at $63.4 million-sugar and molasses accounted for $41.5 million or 64.1%. Economic Outlook. The financial position of the sugar estates appears sound, but the general economic position of the sugar industry of British Guiana is peculiar and somewhat unstable. The natural and social circumstances in which the sugar is produced are, technically speaking, difficult.2 The result is a high production cost. It runs, according to a 1953 estimate, to $145 per ton of sugar without allowance for depreciation. Furthermore, there appears to be little prospect for any substantial reduction in this figure.

'For statistics on production, sales, exports, etc. see Appendix Table 56. For particulars on the economic, technical and social features, see F. C. Benham: Report on the economic position of the sugar industry of British Guiana, Georgetown, 1945; also the Colonial Office publication: Report of a commission of inquiry into the sugar industry of British Guiana, H. M. Stationery Office, London, 1949. 133 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Since 1948, however, the industry has prospered thanks to the Commonwealth Sugar Agreement, under which the United Kingdom agrees to buy the sugar produced in the Commonwealth at so-called "negotiated prices." These were in the middle of 1953, about $50 per ton above world market prices. In surveying the prospects for agricultural development, it is natural to ask how far the sugar industry can be expanded. The limiting factors are the capacity of the factories, the transport system, and the drainage and irrigation facilities within the areas of the estates. The mission shares the opinion, already general among sugar producers, that with the fullest use of the present equipment the industry can perhaps achieve a production of 275,000 tons at no increase in costs per ton. Further expansion would encounter the prohibitively high costs of new factories and of (and reclamation. The production cost would be so high that, coupled with the unfavorable outlook for world sugar prices, further expansion would be uneconomic. The Commonwealth Sugar Agreement is another unstable factor for the British Guiana industry. The original quota for "negotiated price sugar" is about 170,000 tons. It is possible that in 1953, as happened in 1952, other territories will not reach their quota and that British Guiana will be permitted to fill these quotas. This is by no means certain, and therefore the sugar industry would, in any case, be reluctant to expand production above the target of 275,000 tons (260,000 tons export + 15,000 tons internal market) which can be reached without excessive effort and costs on the basis of existing facilities. Prices and Production Costs. Comparative prices and production costs are summarized in Table 26. Dr. Benham noted in 1945 that the sugar industry could keep going only because of the income derived from molasses and rum. Accountants' calculations-subject, of course, to questions of interpretation-showed that in 1948 sugar was produced at a loss of $1.81 per ton; in 1949 the profit appeared to be $2.07 per ton and in 1950 $15.27 (all figures exclude charges for depreciation and interest). An analysis of production costs in recent years, as derived from accountants' reports, is given in Table 27. Although the managers attempted to lower costs (and, as will be shown later, succeeded in increasing the amount of sugar produced per worker employed) the 134 MAIN LINES OF PRODUCTION costs of all field work increased because of a sharp rise in wages. Addi- tional savings in the cost of processing could be achieved by further modernization of the factories, and by concentrating processing in a still smaller number of factories. Although perhaps eight of the 15 factories operating today are too small to be fully economic, there has been progress in this direction.' Here the Rehabilitation fund has been of much help; from 1949 to 1952 it paid out $4.5 million. The balance at the end of 1952 was $1.3 million. The balance of the Price Stabilization fund was $6.6 million; this fund has not yet been used.

TABLE 26 SUGAR PRICES AND PRODUCTION COSTS Year Price of sugar per ton (B.W.I.$) Productioncost per ton sugar

Preference+ Canadian Average Benefit B.W.I.$ c.i.f. Average average per Total Field Total London Local ton exported Costs3 wages wages av.1938-40 54.20 53.76 n.a. n.a. 13.60 22.43 1945 82.20 63.28 6.81 85.52 26.94 41.30 1946 93.60 75.89 6.09 93.44 28.05 43.73 19471 116.40 77.96 6.08 110.67 34.14 55.32 1948 130.80 88.16 5.18 131.91 35.07 62.38 1949 130.80 108.55 4.96 124.77 34.48 68.55 1950 146.40 112.48 4.42 125.30 34.59 68.35 1951 157.80 117.82 n.a. 125.002 34.59 67.58 1952 184.80 134.69 n.a. 145.002 41.34 n.a.

Source: Sugar Producers Association; Labor Department; and for total production costs accountants' reports.

'Includes allocations to the Labor Welfare fund of ...... $ 2.40 the Rehabilitation fund of . .4.80 the Price Stabilization fund of . .6.00

Total $13.20 2 Estimates. 'Without depreciation. I Most small mills have merged, only two of 4,000 tons capacity now remaining. All others have capacities ranging from 16,000 to 35,000 tons. 135 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Employment and Wages. The sugar industry employs managers, staff personnel, factory and field workers. Part of the factory personnel is employed throughout the year, while others are only part time workers. In the field practically all the work is done by part time labor, mostly piece workers. This labor force (Table 28) is

TABLE 27

PRODUCTION COST PER TON SUGAR IN BRITISH GUIANA AND JAMAICA (B.W.I.$) British Guiana Jamaica 1945 1947 1948 1949 1950 1950 1951

Cultivation ...... 21.80 26.22 26.64 28.91 31.39 Drainage, water supply and navigation ...... 5.61 8.26 10.09 10.25 9.11 Reaping &loading 146911.12 11.89 12.00 Transport 1 2 12.32 10.31 9.16 Labor transport 0.44 0.67 0.69 0.62 0.84 Supervision ...... 2.80 3.26 4.36 5.00 5.70

Total for cane at factory ...... 45.34 59.07 65.22 66.98 68.20 )8283 89.23 For farmers' cane' 0.08 0.10 0.19 0.10 0.24 8 Processing ...... 15.19 20.53 29.65 22.85 21.37 14.21 20.34 Marketing, bags .. 16.17 15.23 17.92 17.81 19.31 10.70 14.44 Taxes2 ...... 1.00 2.09 1.91 1.00 1.00 - - Overhead expenses 8.74 13.65 17.02 16.03 15.18 8.20 9.46

Total cost ...... 86.52 110.67 131.91 124.77 125.30 115.94 133.47 (before charging depreciation and interest) Prices for export sugar3 ...... 89.61 109.28 122.78 122.56 137.624

' Farmers' cane is bought at prices higher than cost prices on the estates; this cane is valued by agreement at two thirds of the f.o.b. value of the sugar it contains. ' Sugar production tax $1.00. In 1947 and 1948, there was a sugar export tax. ' After deducting allocations to the three special funds of $13.20 and including the Colonial Sugar preferences and Canadian benefits. Sales of molasses account for the difference in the calculated losses and profits. 136 MAIN LINES OF PRODUCTION recruited from among the people living on the estates and from villages in the neighborhood. TABLE 28 NUMBER OF SUGAR WORKERS (WEEKLY AVERAGE) Average number of days per week Field piece workers Year Field Factory Total Resident Nonresident Males Males 1939-1941 28,349 4,7191 33,068 3.5 n.a. 1946 20,971 5,597 26,568 3.6 3.5 1947 22,553 6,219 28,772 3.6 3.4 1948 21,149 6,725 27,874 3.6 3.5 1949 21,423 6,760 28,183 3.7 3.5 1950 21,641 6,591 28,232 3.8 3.7 1951 21,784 6,146 27,930 3.7 3.7 Source: Department of Labor. 'Excludes maintenance workers. The last two columns of Table 28 indicate that most of the laborers work only a part of the week on the estates. For many of them such employment is subsidiary to their own farm work. Therefore, although the population on the estates and in their neighborhood is increasing rapidly, many estate managers have trouble in getting a stable supply of labor. At rice planting and harvesting time, it is especially difficult to get enough workers. Tables 28 and 29 indicate that the effort to decrease the labor employed per unit of sugar production had considerable success. This has been accomplished by such field mechanization as has been possible under the circumstances, together with more efficient working methods and modernization of the factories. Production by Cane Farmers. As already noted only 2%o of the cane is grown by independent farmers. The census of July 1952 listed 851 cane farmers on a combined area of 2,128 acres. Their total cane production was 22,341 tons, or a little less than 10 tons of cane per acre. The cane is of lower quality than that of the estates, and it is claimed that it takes over a ton more of farmers' cane to make a ton of sugar. There are no private cane farmers on estate land. 137 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Privately grown cane is sold to the factories under agreement. The farmers are paid on a sliding scale which is directly proportional to the price of sugar, but with a guaranteed minimum price. A bonus is offered for better quality. Other facilities are provided including fertilizer at cost price, and the return to the farmer of a small part of the sugar and molasses produced.

TABLE 29 NUMBER OF DAY UNITS AND WAGES PER TON OF SUGAR PRODUCED Index Wages Paid Number of day- Wage In the Total field units in the field per Cost of field & factory Total2 per ton Year day' Wage Living ($000) ($000) (000) sugar av.1938-40 0.75 100 100 3,139 4,766 4,185 23.0 1945 1.36 181 181 4,236 6,493 3,114 19.8 1946 1.55 207 198 4,797 7,480 3,095 18.1 1947 1.74 232 210 5,718 9,265 3,286 19.6 1948 1.97 263 223 6,111 10,792 3,102 17.9 1949 2.20 293 229 6,745- 11,944 3,066 17.6 1950 2.35 313 252 7,515 13,172 3,198 16.3 1951 2.43 324 272 8,225 14,685 2,830 13.1 1952 2.91 388 n.a. 10,034 n.a. 3,475 13.9 Source: Department of Labor.

'Daily wage of a male resident piece worker. 'Total amount of wages paid divided by the daily wage of a male resident piece worker.

There appears to be no prospect for an extension of these farms. The estates, without increasing their cultivated area, can provide the small additional production that the maximum capacity of the factories permits and the market situation justifies. Moreover, division of production among many small farms makes it difficult to impose the collective discipline in the utilization of water required by a polder system. Cane Cultivation. Sugar cane in British Guiana generally yields one plant harvest and three ratoons (see Table 31). Production, in the equatorial climate with two harvests during the two dry seasons, is comparable or superior in cane yield to that of the estates in the West Indies which also have a tropical climate but with only one dry 138 MAIN LINES OF PRODUCTION season and one harvest period. The sucrose content and the purity of the juice are inferior, however, and this reduces the rate of extraction. The poor quality of juice is attributable primarily to the climatic factors, especially the frequency of rains during the spring harvest, which favor growth rather than maturity. It is also affected by the nature of the soil and its defective drainage. Contributing causes are slow transportation and occasional shortage of harvest labor, both of which result in long delay in delivery of the cane to the mill. The average yield of the 1951 crop was 37.2 tons of cane and 3.2 tons of sugar per acre harvested (including the production of small farmers). The average yield of sugar, which was only 1.65 tons per acre in 1920, rose gradually and fairly regularly to 3.22 tons in 1938, and then fell back during the war to 2.29 tons. The extraction rate of the mills for the estates crop averaged 88.02% for the period of 1948-1950 (11.35 tons of cane per ton of sugar).5 In order to grow normally under local conditions, sugar cane requires a drainage that keeps the soil well aerated to a depth of one to two feet. As its growing cycle is 12 to 16 months, it also requires irrigation during the two dry seasons. The polders are so arranged as to provide both drainage and irrigation. Cane fields generally have an area of 10 to 12 acres. They take the form of a rectangle, bordered on three sides by irrigation canals, with a middle walk canal stretching from the back dam to the sea dam, and two cross canals branching off from it at right angles. On the fourth side there is a lower sideline drainage-canal. The interior of the field is cut by drains two to four feet deep, which divide it into beds 37 feet wide (see Figure 2, Chapter 16). On the average a square mile of plantation has: (a) 16 miles of section irrigation canals, 20 ft. wide by 4 ft. deep; (b) 45 miles of large drains, 20 ft. wide by 4 ft. deep; and (c) 45 miles of section drains, 4 ft. wide by 2 ft. deep. These canals and drains occupy about 80 acres, or 1/8 of the surface area. They are supplemented by heavy pumping installations. The arrangement is costly, and requires very expensive maintenance.

'For comparison, some other areas showed 1949 average mill results (tons of cane per ton of sugar) as follows: Queensland, 7.71; Mauritius 8.07; Philippines 8.44; Puerto Rico 8.37; Natal 8.52; Trinidad 9.05. 139 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Beds and drainage trenches are laid out and maintained by hand. Plowing-by oxen or by tractor-is done after flood-fallowing. Al- though there has been considerable experimental work, mechanical cultivation is as yet practiced on only a few plantations. Irrigation is carried out by flooding the whole field for a few hours at a time. During the harvest the irrigation canals are kept full, and the cane is transported in punts dragged by mules or oxen or light tractors. Planting periods run from February to May, and from August to December. Harvest periods correspond to the two dry seasons, from February to April and from August to November. This spreading of the work permits a more regular employment of the labor force. Fertilization. About 75%o of the cultivated surface is on frontland clays with some portions of river silt on the river banks, and 25%o on pegasse clay or pegasse soils. Poor drainage in the lowest part of the polders along the seashore, the need for housing space, and perhaps also the exhaustion of the lands, have caused some plantations to move to the pegasse soils toward the interior. In general, however, the fertility of the soil is maintained by flood-fallowing, fertilizers, and to some extent by depositing trash between alternate cane rows when the land is being prepared. In flood-fallowing, the fields are flooded immediately after the last cutting and are kept under one foot of water for a period of 4 to 12 months. The operation improves the structure of the soil, enriches it in nitrogen, and helps to control pests and weeds. Nitrogen fertilizer is commonly applied as ammonium sulphate, at the rate of two to three hundredweight per acre within eight weeks of planting. Thereafter each ratoon crop is given three to five hundredweight as soon as possible after the preceding harvest. For the coastland clay and the pegasse not subjected to flood-fallowing, the rate is usually four cwt. but sometimes five. In spite of the very low available phosphate content of the three main sugar cane soil types, response to phosphate manures has not generally been remunerative-nor even appreciable-except for certain pegasse soils. The lime requirements of these soils seem to be substantial because of the strong acidity of the lands. However, the effectiveness of liming has not been fully established-again except for certain pegasse soils, and then in massive doses. Even so, one to two tons of limestone are regularly applied at the beginning of each 140 MAIN LINES OF PRODUCTION crop cycle, in order to counteract the acidity resulting from the application of sulphate of ammonia. Pests anad Diseases. The main insect pests are two species of small moth borers (Diatrea saccharalis Feb. and Diatrea impersona- tella Walk), the spread of which has been controlled by the Amazon fly (Metagonistylium minense Tus.) introduced in 1933. The yellow- head moth borer (Diatrea canella) is not controlled and causes important spoilage. The Giant moth borer (Cestnia licus F) is controlled by the flood-fallowing. Hardback beetles cause damage to the roots. Froghopper (Tomaskis flavilatira) periodically causes damage. Until recent years the colony was happily spared the main sugar cane diseases (gumming, serep, mosaic, streak); but the leaf scald disease made an appearance three years ago, and presents a threat to production that cannot be removed except by research for resistent varieties and their rapid propagation. Cane Varieties. There have been substantial changes in past years in the composition of the varieties of sugar cane cultivated, although not always for the same reason (See Table 30). POJ 2878 and Diamond 10, which in 1943 occupied 68.0 and 26.5% respectively of the acreage, have been gradually abandoned and replaced in 1952 by B 34104 (60.2%) B 41227 (12.7%) B 37161 (9.4%) and D 14/34 (8.6%o). The first two of these are susceptible to the leaf scald disease, mentioned above, and the other two varieties merely tolerant. Accordingly, studies toward a replacement of varieties have been undertaken at the Sugar Experiment Station at Sophia. Research. The experiment station of Sophia, near the Botanical Gardens of Georgetown, is maintained by the Sugar Producers' Asso- ciation. Its staff consists of an agronomist and several technical assistants. The station has 116 acres under crop and also conducts a large number of field tests on the sugar estates. At one time the station did much research in the growing of seedlings and in breeding and selection. From 1945 this station obtained seedlings from the B.W.I. Central Sugar Cane Breeding Station in Barbados, testing them at the station and on sugar estates. Since leaf scald appeared arrangements have been made to import fuzz from Barbados for semination and selection. The station has done notable work in soil studies, research on fertilizers, and the development of the flood-fallowing system. 141 TABLE 30

COMPARISON OF CROP AREAS UNDER VARIOUS CANES, 1943-52 (TO of Total Area Under Cane for Reaping) Variety 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 P.O.J. 2878 ...... 68.0 65.1 54.8 40.4 27.6 13.6 6.9 1.6 0.4 - Diamond 10 ...... 26.5 25.5 26.7 25.4 21.6 14.4 8.4 3.1 0.9 0.4 Co. 421 ...... - 1.6 6.3 15.1 19.4 19.3 14.2 8.5 3.5 2.1 ; Co.- 419 ...... 1.3 3.0 4.9 6.5 7.7 8.2 6.8 4.5 2.7 1.7 - vD.166/34 ...... 1.6 2.2 2.2 1.6 1.0 0.5 - - - ~ D. 14/34 ...... - - 2.7 6.4 11.3 17.4 20.6 20.2 15.0 8.6 oi B. 34104 - 1.6 7.6 22.6 39.8 58.4 67.4 60.2 D. 200/36 1.5 1.9 1.7 0.7 - - B. 37161 1.4 3.6 9.4 B. 41227 0.3 3.8 12.7 p D. 142/41 0.2 1.4 1.6 9 B. 4098 .1.3 B. 40105 0.5 m D. 158/41 0.3 x Other Canes ...... 2.6 2.6 2.4 3.0 2.3 2.1 1.6 1.1 1.3 1.2 TABLE 31

CYCLE AGE OF THE CROPS, 1943-52 (% of Total Area Under Cane for Reaping)

Variety 1943 1944 1945 1946 1947 1948 1949 1950 1951 1952 to

Plants .22.4 17.4 24.9 29.3 28.4 31.3 31.2 33.1 28.8 27.8 > 1st Ratoons .29.2 24.4 17.2 23.6 27.0 26.1 26.5 27.4 28.2 23.4 2nd "...... 24.4 28.2 24.0 16.4 22.3 24.5 24.8 23.3 24.4 23.7 ;0D 3rd "...... 16.7 20.7 22.3 18.2 11.8 14.3 15.2 12.6 15.1 18.8 ct 4th "...... 6.1 6.3 9.1 10.1 7.0 2.5 2.0 3.1 3.0 5.4 > 5th " ...... 1.2 3.0 2.5 2.4 3.5 1.3 0.3 0.5 0.5 0.9 2 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Discussion and Recommendations. The weight of evidence suggests that sugar production in British Guiana offers little scope for ihnreased employment. On the other hand the output can be expanded to a fairly definite economic limit (275,000 tons); through this, and further technical improvements, the industry will be able to add to the general welfare of the colony, so long as the "negotiated price" scheme remains in effect. A future program for better cane yields and a higher quality of juice wil] require a group of technical improvements, applied separately or together, in irrigation and drainage, cane varieties, methods of cultivation with and without mechanization, use of fertilizers, and control of weeds and pests. While empoldered land offers such advantages as the maintenance of fertility and soil structure through flood-fallowing, as well as spreading of seasonal labor demands, and inexpensive (if slow) water transport, it also has serious disadvantages. Maintenance costs are high; so is the consumption of conservancy water, part of which might otherwise be used for a second spring crop of some kind. And the water transport of cane means a high water table at harvest time which further reduces the quality of the juice. The popular practice of burning the cane before harvest simplifies cutting, saves labor, and unquestionably kills insects and rats. It also, however, destroys much of the available organic matter. Locally it is often claimed that in the wet climate too much humus is produced, and that burning the fields prevents too great an accumulation of it in the soil. This may be a rationalization; for, in fact, in well drained soil, good tillage and incorporation of all the trash and debris probably would deepen progressively the layer of arable soil open to the roots. These operations would be expensive if done by hand, but they might be tried further with machinery, as is done elsewhere. Mechanization of the cane fields offers special problems, primarily because of the nature of the soil and the interference of the unusual canal system. Powerful crawler tractors are required, with a set of heavy implements and drain diggers, and the dams and bridges must be strengthened. The investment involved is considerable. In the cultivating operations the advantages of machinery cannot be doubted. But in the harvest, which now accounts for 34% of the labor cost, 144 MAIN LINES OF PRODUCTION

mechanization poses a technical problem which has not yet been solved.' In a long-run program, the marginal lands, exhausted or badly drained, should be abandoned and replaced by plantations on new land with a more efficient irrigation and drainage system. Growth would probably be improved by sprinkling irrigation instead of field flooding; this appears feasible, thanks to the canal network, and should be tried to see if it offers technical and economic advantages. The problem of cane varieties is at present dominated by the search for seedlings that combine good yields with resistance to the leaf scald disease. For ultimate distribution to the British Caribbean colonies, it is only in British Guiana that these properties can now be tested with confidence. Accordingly the mission concurs in the view that experimental seedlings should be raised locally from Barbados types and others especially bred for the purpose. On the basis of previous progress of the sugar industry, it may be estimated that the combined action of the different methods for improvement might, in the next few years, raise the average yield in sugar per acre by about 10%o. This would bring the probable average output in five years to about 275,000 tons, and thus approach the maximum capacity of the refineries.

II. Rice

Rice, second only to sugar in annual cash value, is by far the colony's most important domestic food crop and the only significant agricultural export besides sugar. While cane is an estate crop, most of the rice is produced by peasant farming. It is grown exclusively in the coastal belt, between the Pomeroon and the Corentyne. Rice growing was started near the close of the last century on land rented from abandoned sugar estates, by East Indian immigrants who had brought their techniques of cultivatiori along with them. Since then, and especially since World War II, it has spread until now the area devoted to rice is larger than that of sugar cane. The main autumn harvest, which covered 76,500 acres in 1944, amounted to

o In other sugar producing regions motorized cane transport is becoming fairly com mon, but mechanized cane cutting is very limited in use. The latter, although prac. ticed commercially in a few areas with a variety of machines, retains certain drawbacks and must still be considered experimental. 145 THE ECONOMIC DEVELOPMENT' OF BRITISH GUIANA

133,970 acres in 1952. Since 1948 the increase has been particularly marked in Berbice and Demerara, largely owing to the Mahaicony- Abary Rice Development Scheme and to the partial mechanization of medium-size private farms. Economic Position. Nearly half the value of all small farm crops is in rice. Its standing with respect to other commodities in this group is shown in Table 32.

TABLE 32 GROSS VALUE OF FARM CROPS OTHER THAN SUGAR-1952 Gross Value Crop in $ Millions % of Total Rice ...... 10.9 49.0 Coconuts ...... 1.3 5.8 Meat and milk ...... 5.3 23.8 Ground provisions ...... 2.7 12.0 All other crops ...... 2.1 9.4

Total ...... 22.3 100.0

The great majority of rice producers today are East Indians. Farms are generally from three to five acres. According to the 1951-52 census, the number of operative units (farms) in rice culture was 20,728 on 133,970 acres-an average of 6.5 acres per farm. This average is lower in Essequibo (5.2 acres) than in Demerara (8.4 acres) or Berbice (6.2 acres). Although exact figures are not available, it is believed that about 50 % of the rice is planted by tenant farmers. Leases are generally made by oral agreement and renewed each year, a practice which does little to encourage land improvement. The tenants for the most part depend on the landlord not only for land but also for drying and storage facilities (which, present special problems under British Guiana's climate) as well as for parboiling and milling the rice. In addition, they are dependent on landlords or moneylenders for marketing their crop. Existing ordinances regulating tenant-landlord rela- tions and fixing minimum prices for paddy, and rice do not appear to be very effectively enforced. In a number of cases, one or several tenants rent acreages of 15-20 acres for a five-year period. Many of the small farmers do not depend 146 MAIN LINES OF PRODUCTION exclusively upon the rice harvest but obtain additional income by working on the sugar-cane plantations. Currently the average price paid to millers for rice in British Guiana is B.W.I. $7.30 per 100 pounds. The average export price in 1952 was $10.02 for sales in the British West Indies. Competitively, this was well under the $11.70 price for Burma rice in this market, while U. S. and Brazilian prices were appreciably higher. Reclamation projects to be completed over the next five years are expected to raise rice production in British Guiana from 74,000 to about 110,000 tons, of which the exportable surplus may be as much as 68,000 tons. Although the quality of the local rice is now rather low, it is evident that at such prices there will continue to be a ready market for it in the British West Indies. The outlook for world rice production to reach demand is not too bright, since world consumption is steadily expanding. 7 Furthermore, the measures taken by the Rice Marketing Board (RMB) and the British Guiana Rice Develop- ment Corporation (RDC) are expected to result in a better average quality in the future. Cultivation Practices. The layout and topography of the polders, in narrow stretches of land perpendicular to the shore line, necessi- tate the grouping of houses on the road along the seashore. The lots, however, are very often broken by smaller holdings scattered along the polder depth. This type of housing and land parceling impedes the field work through loss of time and the difficulty of supervision. Moreover, the time required for seeding and for transplanting may vary substantially in neighboring fields, and the resulting lack of synchronization in' operations reduces the beneficial effects of irrigation and drainage. Rice fields which are located on former sugar cane plantations can be irrigated while the others must rely upon rainfall. The latter are fairly well drained but are more sensitive to weather. The rapid spread of the crop into new and insufficiently drained areas which are dependent upon the vagaries of rainfall has reduced the proportion of the irrigated fields in the total acreage to 30%, thus making rice production as a whole more liable to fluctuations. The climate generally permits two crops: the so-called autumn and spring crops. The first, corresponding to the long rainy season from 'Rice commodity reports, Food and Agriculture Organization, Rome, 1952. 147 TUHE ECONOMIC DEVELOPMENT OF BRITISH GUIANA mid-April to the end of August, gives a crop in September/October. The second crop, corresponding to the short rainy season, grows from mid-November to the end of February, with a crop in March. Over 90% of the rice is obtained from the autumn harvest. Unless there is adequate irrigation and drainage the second crop is always very uncertain. It is localized in Essequibo and Demerara and is partly obtained without cultivation. As much as 40 to 50% of it "volunteers" from the drop seed of the autumn harvest. This crop varies greatly in area and quantity according to weather conditions during the harvest; it covered only 9,300 acres in 1950 and 20,000 acres in 1951. The average yield per acre is much lower than that of the first crop. Methods of cultivation are similar to those of southeast Asia. Plow- ing and puddling by oxen takes place at the beginning of the rainy seasons, when the soil is quite wet and easily worked. Nursery seedlings five or six weeks old are transplanted or, alternatively, there is direct broadcast sowing with weeding during the growth (See Table 33). Harvesting is done by sickle, after which the bundles of panicles are dried in the field and threshed by oxen. A total of about 60 workdays per acre is required; peak periods occur during transplanting (six workdays per acre) and harvesting (nine workdays per acre).

TABLE 33 PROPORTION OF DIRECT SOWINC AND TRANSPLANTING OF PADDY (Autumn Harvest 1952) Sown Paddy Transplanted Paddy Number of Number oj Farmns Acres Farms Acres Berbice ...... 8,707 29,338 4,038 36,412 Demnerara .3,365 9,351 3,231 37,598 Essequibo .3,900 18,491 588 2,780 Total .15,972 57,180 7,857 76,790 Source: 1952 census. Improvements needed to increase local rice production are more of an intensive nature (yield per acre) than extensive (expansion of acreage). Under traditional methods, drought at the time of the soil 148 MAIN LINES OF PRODUCTION preparation (plowing and seeding) and excess of water during the plant growth and harvest make for an unstable production. Im- proved control of irrigation and drainage would regulate the area sown and would stabilize the average yield of the autumn harvest at a higher level. This would give a sounder base for the improvement in yield through seed selection, fertilization and the other means of intensification. However, it does not appear that only one paddy harvest-even an improved one-can bear the maintenance and amortization expenses of more efficient water control. More intensive utilization of the soil is necessary, therefore, through annual double cropping, or perhaps by closer association between crops and dairy cattle which water control would make possible. Measures to stabilize land tenure and reallotments of land would indirectly contribute to an increase in production. But the improvements most needed are better varieties of seed, fertilizers, extension of the second harvest, crop rotation, partial mechanization, and more satisfactory processing and marketing. Yields. Local yields are comparable to those of good rice lands in southeast Asia (Thailand, Burma and southern Indo-China), and they occupy a very respectable place in the yield-scale of tropical rice countries of the Western Hemisphere. Average yields in neighboring Surinam (2,700 lbs. per acre) are, however, somewhat higher. The average yield in British Guiana (1942-51) for the two harvests is 2,560 lbs. per acre. The spring harvest yields 1,100 lbs., while the average for the main autumn harvest is 2,340 lbs. In the latter it is much higher in Essequibo (2,810 lbs.) than in Demerara (2,270 lbs.) or Berbice (2,210 lbs.). The higher yield in Essequibo can be attributed to better irrigation, higher rainfall and a greater use of hand transplanting. Studies at the Abary-Mahaicony Development Scheme have shown that there is a direct correlation between the yield of the fall harvest and the rainfalls of February-March (+71) and April-May (+67). From this it may be assumed that the yield is closely linked to the possibility of plowing and seeding at the best moment-i.e., as soon as the rains end. Under present conditions of cultivation the plowing, followed immediately by seeding, must be done in a muddy soil. A delay in these operations, or a return of a drought after their execution, jeopardizes the harvest. For mechanized cultivation the optimum 149 TIIE ECONOMIC DEVELOPMENT OF BRITISH GUIANA weather conditions are not the same, for then a well drained soil is needed for spring plowing. Varieties. Rice plants are not native to British Guiana. The cultivated varieties of paddy belong to the Indian type, with long or medium grain. Cultivation was originally started with a few varieties imported from India and the crop has remained fairly homogeneous. By patient and efficient breeding work, the Department of Agricul- ture has developed the varieties which now dominate rice cultivation. These include two long grains, D/11O and D 52/32, and one medium grain D 79. There has now been added a D 54/42 variety which possesses certain characteristics making it more suitable to mechanized planting. In the rice fields generally, the disease incidence is low. The most harmful damage is believed to be caused by a pest, the paddy bug, Mormidea Poecila Dall. In rice fields having two harvests per year, however, the existence of red rice raises serious problems. For the present, the Department of Agriculture is concentrating solely on the creation of new varieties suitable for mechanized cultivation-particularly those resistant to lodging and shattering. Research is being carried out through back-crossing and selection. United States and Venezuelan plants are used for cross breeding. Considera- tion is also being given to the creation of a range of early, mid-season and late maturing varieties in order to lengthen the combine harvesting period by spreading out the maturity dates. In Surinam there is successful direct cultivation of American varieties such as Rexoro, Fortuna and Blue Bonnet, which are not very sensitive to the length of day. Although the types selected by the Department of Agriculture for traditional cultivation (with transplanting) are satisfactory, it appears that there is still room for improvement. The practice of broadcast sowing is widely used, chiefly because it is quicker than the system of nursery seedling and transplanting. This is unfortunate, since transplanting makes for a better and more stable yield. The eventual solution, however, may lie in research rather than a change of habits. Birchell and Brown8 state:

8 H. M. Birchell and 0. B. Brown. Report on mechanization and organization oa rice production in British Guiana, 1950. 150 MAIN LINES OF PRODUCTION

"It is probable that varieties of paddy can be developed which will react more favorably under direct seeding conditions than varieties now grown in the colony. "Varieties of early mid-season and late maturity are needed, as present varieties vary little in time required to reach maturity. A variety of trials should be conducted to determine whether shorter period varieties will make satisfactory yields when sown as a spring crop. Varieties ripening 20 to 30 days earlier than present varieties would reduce the need for supplemental irrigation water for the spring crops. Early and mid-season varieties should also be tested for possible use as autumn crop." Fertilizationand Rotation. As in other countries, local experiments have shown that sulphate of ammonia, applied at the rate of two cwt per acre, generally brings an increase in yield. At the same time, in view of the fertilizer/paddy price relationship, this method gives a larger profit only where the gain is considerable such as on the less fertile soils. Results of experiments with phosphates in various forms and with lime are more conflicting. Phosphates are effective on very acid soil with toxic amounts of soluble alumina. The soils are not suited to the use of potash fertilizers. It is still too early to suggest a broad policy in the use of fertilizers. Their general use would require substantial credit advances to farmers, and a suitable sales organization. The technical data are not yet complete and, in any case, fertilizers should be used only on land with a system of water control to assure some protection from weather risks. The use of fertilizers in rice fields should be the subject of careful experiments, in conjunction with studies of soil evolution under various systems of crop rotation and a study of rice physiology. It is suggested that, for this purpose, the Department of Agriculture add to its staff two new specialists-a soil chemist and a plant physiologist. Crop rotation is of special significance. As a substitute for double cropping of rice, there is no method of more intensive farming based on local experience which can be recommended at present. This calls for experimental treatment covering both technical and economic aspects. A large part of the future agricultural experimental station work should be devoted to this subject. 151 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Without attempting to suggest a concrete program, the importance of research in the following fields is stressed: evolution of the organic matter and of the nutrient status of the soil under various rotation and farming systems; interdependence of plant growth and water; best methods of drainage; optimum irrigation; spring and autumn rice crops; rice cultivation alternating for various periods with grass land; rice and dry spring crops; possibilities of soya, corn, sorghum, jute and other crops.

Mechanization. Table 34 gives 1952 census figures for agricultural machinery on mechanized farms other than sugar estates. This equipment is largely concentrated in the district between the rivers Abary and Mahaicony. The Mahaicony-Abary Rice Development Scheme alone owns 75 of the tractors and 48 of the combines.

TABLE 34

AGRICULTURAL MACHINERY ON MECHANIZED FARMS (Sugar Estates Excluded) Total for the colony Berbice Demerara Essequibo Tractors ...... 273 54 190 29 Combines ...... 165 49 111 5 Motor cars ...... 243 65 142 36 Trucks ...... 83 35 18 30

Source: 1952 census.

The tractors generally work on less than 100 acres. Farmers may buy them on credit extended by commercial distributors under a Rice Marketing Board guarantee, paying one third of the price at the time of purchase and the remainder on the two forthcoming crops. Farmers with about 20 acres rent tractors from the larger-scale individual farmers, or from the Mahaicony-Abary Rice Development Scheme. Rates charged by the latter, while favorable to the farmer, do not take into account amortization and maintenance. Because other types were formerly not available, the colony's tractor fleet contains a high percentage of iron-wheeled and tire-wheeled machines which are probably not the best type for rice. Track-laying 152 MAIN LINES OF PRODUCTION crawlers of average power would appear to be preferable. Greater standardization in the tractor fleet would appear desirable. An examination of the economic features of rice mechanization, however, leads to the conclusion that its extension at this time, except for use in peak labor periods, is not generally desirable. Between the end of February and the beginning of May there are only about 40 days during which a tractor of average power must perform all the initial operations for the autumn crop-plowing, disc harrowing, drag harrowing, and drilling. Under normal conditions the area that a tractor can work on, without night work, is thus reduced to 125 acres during this period. Later with a 6 ft. drawn combine, the same tractor can work about 60 days in harvesting. It can also be used for disc plowing on the autumn stubble crop for about 20 days. Thus, taking transportation into account, effective work totals 700 to 750 hours per tractor. It is generally considered that a tractor does not attain full economic efficiency unless it works a thousand hours a year. Under hand rice cultivation and transplanting the net yield will amount to about $80 per acre. But rice yields are lower on a mechanized farm, where average gross income per acre will be only about $75. After deducting the cost of seed, fuel, lubricants, maintenance and depreciation of the machinery the contribution to net national income will be not more than $40 per acre. As far as farms of less than 10 acres are concerned, mechanized rice cultivation is virtually impossible, not only in view of the size of the farm, but because it is frequently divided into small plots. In any case the work is well within the capacity of the farmer, even at the peak periods of transplanting and harvest. On farms of 10 acres or more, however, a lack of family manpower may be felt at harvesting time. Small movable threshers, with auxiliary engines, would improve the quality of the grain by facilitating its drying and eliminating the pollution and loss suffered in the old method of trampling by oxen on threshing floors. Extensive mechanization under present local conditions seems rather risky economically. A succession of years of bad weather can bring financial jeopardy to the owners of tractors in debt for their equipment. When mechanization is applied to rice fields already in production, it can only result in a reduction of yield. 153 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The mission believes that governmental incentives to farm mechanization-financial or otherwise-should be limited to cases where qualified farmers take the initiative in operating sufficient acreage of adequately drained and irrigated land. It is suggested, however, that the Department of Agriculture engage an engineer, a specialist in agricultural machinery, to study the types of agricultural equipment most suitable for the colony. Mahaicony-Abary Rice Development Scheme. A significant source of information and experience in mechanization is the government- sponsored Mahaicony-Abary Rice Development Scheme. It was organized in 1942 as a large-scale mechanized rice estate to fill the gap in West Indies rice imports caused by the loss of Burma. The Scheme occupies about 11,000 empoldered acres, between the Mahaicony and Abary rivers which are used for irrigation and drainage. Around 4,000 acres are under cultivation by the Rice Develop- ment Company, the rest being occupied by small holders engaged in rice cultivation and cattle raising. In addition, the Scheme has bought a second area of 6,000 acres at Onverwagt, on the right bank of the Abary river. The soil is a coastland clay containing 55-65% clay, 22-29% silt, 6-7%O organic matter and a pH varying from 5.2 on the surface to nearly 8 at a depth of 30-36 inches.

TABLE 35

CROP AREA IN THE MAHAICONY-ABARY RICE SCHEME Year Cultivated Area Year Cultivated Area

1944 ...... 2,300 acres 1948 ...... 3,448 acres 1945 ...... 4,300 " 1949 ...... 4,000 1946 ...... 3,700 " 1950 ...... 4,274 1947 ...... 3,899 " 1951 ...... 3,793

The Scheme operates an experiment station which studies conditions for improvement of the yield, including the control of red rice and weeds, water control, methods and rates of sowing, better systems of cultivation, and the use of tractors and combines, fertilizers and weed killers, and of new rice varieties suitable for mechanized cultivation. 154 MAIN LINES OF PRODUCTION

A modern rice mill is in operation, with a capacity of five tons per hour. In 1951 it processed 220;000 bags of paddy. The Scheme also owns a fleet of tractors, combines, threshers and implements in excess of its own needs. This equipment is rented to farmers, chiefly to those who sell their paddy to the mill. Hire charges are based on operating costs, while the maintenance and depreciation deficit is covered by the Scheme itself. According to data supplied by the Scheme, costs for the 1952 crop were $56.51 per acre and $3.95 per bag. If the expenses of the experimental station are included, the costs were $58.45 and $4.08 respectively. The financial report of the Scheme for the year 1951 shows an average sales price of $10.44 per bag of rice, at a cost of $9.95, giving a surplus of operative receipts over expenses of $0.49. In 1952, the surplus of operating receipts amounted to about $1.00 per bag. In view of its wartime urgency, the preparatory work for the Scheme was undertaken very quickly. As a result, some of the main defects in the original o'rganization and layout of the project are difficult to rectify. These include the dual purpose irrigation and drainage system, the geometrical layout of blocks without regard to topography, and the variation up to 12 inches in the same block in the depth of submergence. The lack of levelling induces infestation by weeds on the higher areas, rotting of seeds, irregular germination and lodging of the crops in lower areas, and reduces the pick-up of combines. There is excess water, and its retention helps to reduce yields. The local variety D/79, used until now in the absence of other seeds, is not suitable for mechanized cultivation. It shatters easily, has too much straw and has a strong tendency to lodging; hence there are losses of grain at crop time and the combines operate at a low efficiency. Furthermore, the volunteer spring crop causes considerable infestation of the fields by red rice, and, more generally, by weeds. In 1951, on the scheme area taken as a whole, 22.39% red grains were found in the spring crop and 13.51 % in the autumn crop. The spring crop is harvested in March. This leaves only about 30 days for plowing and harrowing, before sowing the autumn crop. To get the work done on time requires a considerable number of tractors -even more if they are not of the most suitable types. The Scheme's fleet of tractors, based on equipment available at the start, has been 155 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA too quickly standardized and consists of the iron-wheeled and tire- wheeled types mentioned earlier. On dry land the normal mechanized cultivation includes disc plowing, disc harrowing and drag harrowing, followed by drilling or broadcasting of seed; if the seed is broadcast, it is given another harrowing to cover it. In practice, however, most of the tillage is done on very wet soil at the beginning of the rainy season. The subsoil, still firm if the land is properly drained, lends a foundation sturdy enough for the iron-wheeled tractors. Seed are broadcast and water drained with 24 hours of seeding-the so-called "underwater cultivation" system.9 In either case, to avoid seed rotting and irregular germination on the lower area of the fields which are insufficiently levelled, fields are not submerged during the first month of growth. Under the circumstances, the average yield of the Scheme is much lower than that of the rest of the colony. The average autumn crop during 1945-51 was 12.94 bags (1,806 lbs.) per acre. The low efficiency of the irrigation and drainage system is illustrated by the differences in yield among the blocks (1945-51 average, Block C, 15.07 bags per acre; Block E, 10.32 bags per acre) and also by the variations of the average yield of the Scheme from year to year according to weather (1951, 10.09 bags per acre; 1946, 15.70 bags per acre). While it is doubtful whether it will ever be possible to surmount some of the handicaps arising from the original defects of the layout, there are a number of measures which would probably improve production and financial results. Progressive correction of the land levelling would be helpful. Deep autumn plowing on one third of the area every year would help to control red rice and weeds and improve yields. Very considerable benefit would accrue from the use of varieties more suitable for mechanized cultivation, with their maturity spread out to lengthen the crop time. Suppression of the spring crop, in order to lengthen the period favorable for soil preparation for the autumn crop, should be seriously considered. It is probable that the additional production from this 'It is known that less weed trouble and better yields are obtained by broadcasting in ground covered with water (airplane sowing) which is immediately drained, or alternatively by broadcasting soaked seed on ground which is slightly submerged immediately after sowing. These two systems check the growth of weeds before (first case) or after (second case) sowing. 156 MAIN LINES OF PRODUCTION crop is offset by a loss in the autumn crop resulting from its preparation under poor conditions. The defective irrigation and drainage system does not, unfortunately, allow dry spring crops as an alternative. Rotation of rice and beef cattle does not appear economic. The Mahaicony-Abary Rice Development Scheme was recently transferred by the government to the RDC. A loan of $5 million from the Colonial Development Corporation is intended to finance its extension, working capital, installation of two new rice mills outside the Scheme at a cost of $2.7 million, and repayment of previous advances made by the government. New investment and expenses for the Mahaicony-Abary Scheme itself are estimated at $1.8 million. Part of the program calls for bringing the new Onverwagt area into operation. The advisability of this expansion may be somewhat debatable in the light of the technical and economic achievements of the existing Scheme, although the new area will be able to avoid many earlier mistakes. The alternative of using the land and credits for small-scale farming would bring greater soil productivity and increased employment, but, as it is, the colony is not yet ready to embark on a large-scale settlement project, and, in any long-term program, it is quite possible to have an expanded mechanized rice production, auxiliary to small-scale farming. It is unfortunate that, because of basic errors in the original Mahaicony-Abary development, the true economic feasibility of properly conducted mechanized rice cultivation cannot yet be fully evaluated. The new scheme can at least profit from earlier experience. The mission believes that it can be placed on a much sounder basis if provision is made for:

1. A layout which takes account of the topography, with careful levelling and contour plowing, 2. Separate systems of irrigation and drainage, giving better facilities for growing dry crops in the spring, 3. Research to find quick growing dry crops for rotation with autumn rice, thus leaving enough time for mechanized tillage of rice itself. Here a secondary spring crop harvested by combine would achieve more economic use of machinery, 4. Introduction of productive rice varieties suitable for mechanized harvesting, 157 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

5. Deep autumn plowing on one third or one fourth of the area every year to control red rice, 6. Centralized accounting for all parts of the Scheme. Economic Improvements in Rice Production. In addition to raising the productivity of rice farming through improved agricultural technology, it is evident that there are some economic problems in this sector in which adjustments will prove helpful. Foremost among these needs are the reclamation of additional land, the development of a system of paddy driers and storage bins, the construction of more modern mills, and the improvement of farm credit. Land. In view of the present low average acreage of rice farms, there is need for more land if only to bring the smallest holdings up to a more economic size. A minimum target of 10 acres per farmer would alone call for reclamation of perhaps 72,000 acres; 15 acres would require a further 76,000 acres. These figures are exclusive of the provision for new farmers, for whom perhaps 30-45,000 acres will be needed by 1958. The two land reclamation projects of Boerasirie and Corentyne will add perhaps 34,000 acres and 27,000 acres respectively, of which 17,000 and 27,000 acres are suitable for rice. The Mahaicony-Abary Rice Development Scheme, through its extension at Onverwagt, will add another 6,000 acres. If we take into account also some extension of cultivation by private enterprise, it seems possible that the extension of rice fields could reach 50,000 or 60,000 acres in the period 1953-60. This would not necessarily represent the net increase over the 1952 area, since some of the rice fields hastily brought under mechanized cultivation may have to be abandoned. Drying and Storage. Except at Vergenoegen, no artificial driers are at the direct disposal of the farmers. Although for hand-reaped paddy, artificial drying is not as necessary as for combine-reaped paddy, in both cases serious losses in quantity as well as in quality result from storage at too high a moisture content. The drying-floors of the rice mills are almost entirely needed for the drying which follows the parboiling of the paddy; they are inefficient at best. Improved drying of the paddy both before storage and after parboiling would provide a higher output and a better quality 158 MAIN LINES OF PRODUCTION of rice, and thereby a better price to the producer. The cost to the grower for artificial drying per bag of paddy, would be 200 to 250 for hand-reaped paddy, and 400 to 450 for combine paddy. The estimated capital cost per 100,000 bags of paddy is from $135,000 to $150,000. Plans of the Rice Development Corporation include installation of a large drying unit on the Corentyne coast, expansion of the drying capacity of the Mahaicony mill, and construction of dryers on the Anna Regina Settlement scheme. If these plans are carried out, the artificial drying capacity will amount to 1.5 million bags of paddy per year, which should be sufficient for the next five years. The storage capacity will also be expanded sufficiently to meet the needs of the rice producers. Milling. Privately owned rice mills in British Guiana-192 in number, of which 175 are in operation-are generally obsolete and inadequate, and produce a low quality of parboiled rice. The Rice Development Commission has stated that, except in the Essequibo, the small mills are inefficient and beyond rehabilitation. It would therefore be more economical and in the interests of the rice growers to promote the building of new modern mills, either by the newly formed RDC or by private investors. The Rice Development Corporation is planning to construct new mills on the Corentyne coast and at Anna Regina, and to enlarge the mill at Mahaicony. The total planned capacity will be 1.2 million bags, which will cover 65%o of the 1952 production and about 40%o of the estimated production in 1960. If, in addition, the existing private rice mills along the Essequibo can be rehabilitated with the help of credits the major needs will be met. It can be expected that private millers in other regions will have to meet the competition of the government mills by modernizing their own mills. Farm Credit. Additional credit facilities for rice farmers are necessary, as much to loosen the ties of the tenants to the landlords as for capital outlay. The main requirement is seasonal credit to meet cultivation and reaping costs. Cooperation with the Rice Development Corporation, the Rice Marketing Board and the settlement schemes will be needed. 159 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

III. Coconuts In planted area and value of product, coconuts occupy third place in the colony's agricultural production. They are not too important, however, as the coconut industry contributes only 2% of the gross income from agriculture. Eighty-seven percent of all coconut palms are grown on estates or in small solid plantings (Table 36); the remainder are found scattered on house lots and along dikes and canals. In Essequibo and Deme- rara there are a few large estates of several hundred acres; but most of them are of modest size, the colony's average solid plantation being 10.8 acres, containing 623 bearing palms. In Berbice the average plantation is about four acres. The total area under coconuts, which increased from 22,450 to 34,600 acres between 1938 and 1946, is now about 32,000 acres. TABLE 36

COCONUT CULTIVATION No. of Total No. of Trees (x 1000) Total Nuts Type of Operators Area Picked Planting Reporting Acres Bearing Not Bearing Total (x 1000) Solid ..... 2,383 25,651 1,485 521 2,006 35,993 Scattered .. 10,475 5,641 n.a. n.a. 314 5,578 Totals ..... 12,858 31,292 - 2,320 41,571 Source: 1952 Census.

Cultivation. Many of the coconuts are grown on former sugar estates and enjoy the same drainage system. The best plantations are on the coastal sand reefs, but the palm is also found on the heavier, coastland clay and riverbank silt, where it requires effective drainage to thrive. The health of the palms is generally poor. The main disease is a wilt, which occurs most severely in the Pomeroon area. Wilts with comparable symptoms occur through the Caribbean islands and in Surinam. In spite of considerable research, nothing has been learned of their causes and little concerning methods of control. Bud rot (Phytophtora palminosa, Butler) occurs in scattered plantations. The main pest is the coconut caterpillar (Brassolis sophorae, L.); the eating larvae cause considerable defoliation. Other pests are the 160 MAIN LINES OF PRODUCTION coconut scale (Aspidiotus destructor, Sign.), a borer weevil (Rhyn- chophorus palmarum, L.) and the large moth borer (Castniadaedalus, Cram.). Standards of cultivation are poor, and only minimum care and attention is given. There is no weeding, and drainage is insufficient. The general economic conditions of the plantations are probably inferior to those of Malaya and Ceylon. Yields reflect the conditions of cultivation. A comparison of returns from one of the better British Guiana plantations with corresponding data from Ceylon (Table 37) illustrates the deficiency. Averages for the colony as a whole are even lower than the example chosen. The oil content of the local copra is comparable with yields elsewhere, but the low copra content of the nut is not. TABLE 37

COMPARATIVE COCONUT RETURNS IN BRITISH GUIANA AND CEYLON A Plantation Ceylon in undulating British Guiana and hilly manured sandy loam

No. nuts per ton of copra ...... 7,000 4,500 - 5,500 No. of nuts per tree ...... 50 75 - 100 No. of palm trecs per acre ...... 55 40 - 50 No. of nuts per acre ...... 2,750 4,000 - 4,500 Kgs. of copra per acre ...... 390 780 - 900

Processing. Before the war the colony exported part of its production in the form of copra, oil or fresh nuts (1,226 tons of copra and 6,700 gallons of oil in 1935). Exports have now stopped completely since all production is needed for local consumption which has continuously increased with the growth in population. Of the 1952 crop, 3,792,000 nuts (9%) were consumed by their producers, presumably as food. About 56% of the nuts were transformed into copra, which was almost entirely absorbed by two modern expeller mills. The other 35% were sold fresh but most of these also were processed to oil by small manufacturers. One estimate given the mission indicated that total nuts consumed directly as food amount to 16%o of the crop, including that portion of the nuts sold fresh. Processed residues from oil extraction are used as animal feed. 161 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Expeller cake from the modern mills is sold as copra meal for cattle; the residue from the cruder extraction of the small oil producers is fed to pigs. Processing in the latter case is a cottage industry, using the rather primitive and inefficient boiling method. It is estimated that the expellers recover 10-15% more oil than the boiling process. The Coconut Industry Committee has recommended that the crude cottage method be replaced by copra production to increase the edible oil supply, and that for the same reason tallow and substitute oils be employed in locally manufactured laundry soaps. In Jamaica and Trinidad the law prohibits manufacture of oil by the boiling process except on a domestic scale. Productionand Prices. Additional statistics on coconut production in recent years are shown in Table 38. An estimate of the 1952 gross income per acre gives $59 per acre for oil and $20 for meal, or a total of $79. This compares unfavorably with the $90 per acre gross return from a rice field. The copra producer receives about $43 per acre, while his costs for picking, drying and delivery are about $30 to $35 per acre. World copra production is generally small-scale. Estates employing wage labor can overcome this handicap only if they have a competitive production cost. This calls for the use of skilled techniques to ensure very high yields, and in general is practicable only where natural conditions are exceptionally suited to the growth of coconut. The climate, land and comparatively high wages of British Guiana are not very favorable. The return is not high enough to encourage investment in new extensions, which in any event would not become profitable for eight or ten years. Up to 1951 price restrictions, based on a policy of keeping the cost of living down, were such that only marginal profits were left to the producer. This was particularly true of the estates, and left the industry in a deplorable condition through the neglect of the drainage systems as well as general maintenance of the plantations. Consider- able losses of nuts and a declining yield per acre were the consequences of this policy. Price improvements in 1952 put the industry (at least the estates) on a slightly profitable operating basis. With a combination of relatively high wages and low productivity, however, there appears to be no feasible prospect for an economically sound expansion of the coco- 162 MAIN LINES OF PRODUCTION nut estates. This will become even more evident if current fears of a worldwide overproduction of edible oils prove sound."0 On the other hand, local requirements, and the role which coconut oil production plays in the diversification of agriculture, justify some efforts to improve its economic position. Toward this end the Coconut Industry Committee has made a number of recommendations.

TABLE 38

ACREAGE, PRODUCTION, PRICES AND GROSS YIELD PER ACRE OF COCONUT

Est. Av. Value Price for yield based Acreage Production eg. copra per Price for per acre on 1,000 1,000,000 tons lb. in ¢ for oil to in tons copra Year acres of nuts copra producer producer copra prices

1937-40 22.51 n.a. 49002 3.0 n.a. 0.22 14.50 1941-45 31.8 40.0 5330 4.7 n.a. 0.17 17.30 1946-47 33.3 45.0 6000 5.7 n.a. 0.18 22.60 1948 n.a. 45.9 6120 8.3 1.24 - -- 1949 n.a. 41.9 5590 8.3 1.28 - - 1950 33.0 51.2 6830 8.7 1.28 0.21 39.50 1951 n.a. 44.0 5870 10.5 1.46 - - 1952 31.2 37.9 5050 12.0 2;363 0.26 42.60 Source: Report of the coconut industry committee 1952, Office of the Con. troller of Supplies and Prices. Statistics of the Department of Agriculture.

1 Presumably estate coconut plantations only. Rough estimate. 'The landed cost of imported edible oil was $2.90 per gallon; the wholesale price fixed by the Controller of Supplies and Prices $2.60 per gallon; the price fixed for the producer $2.36.

In view of local circumstances, the mission believes it best to encourage small family plantings around houses and gardens in preference to any extension of coconut estates. As an aid to this it is suggested that the Department of Agriculture enlarge its nurseries and offer young palms to small farmers at a low price. A first step would be the selection of seed nuts from some trees of proven high bearing

'Fats and oils: Commodity Reports, Food and Agriculture Organization, Rome, 1952. 163 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA capacity. Impatience with the slow growth of palms has discouraged breeding of improved varieties, at least in this part of the Western Hemisphere. Coconut trees on existing plantations improve remarkably under good conditions of cultivation, drainage, weeding, and the use of mineral or organic fertilizers. Measures such as these would probably bring a good return. The Department of Agriculture, possibly with the help of some estates, could set up plots where such methods could be tried out and their value demonstrated. The possibility of mineral deficiencies contributing to tree death and disease should be investigated experimentally. A most pressing problem is a study of means to combat parasites and diseases. The Department of Agriculture should arrange to par- ticipate in the investigations into wilt now under way in Trinidad and Surinam. It may ultimately be found that collective protection will require uniform compulsory regulation. Intercropping and cattle grazing under the coconut trees might improve the returns on estates. Sheep have been considered because of the damage which cattle may do to the drainage system, but a method of planting with curved banks appears to eliminate this difficulty. Another partial solution consists in growing and cutting a fodder crop to be fed to dairy cattle elsewhere, although this does not seem suited to adult plantations and in any event fails to return manure to the soil naturally. As an aid to processing, the mission recommends the introduction of small copra driers, made locally and patterned after those used at times in Malaya and Ceylon. This could be done without importation of expensive materials. Higher grades of copra could then be produced, independent of weather conditions. In addition to research, the government can render substantial help to the industry by: 1. Distribution of superior plant material, 2. Freeing of copra prices and of the importation of edible oil, allowing prices to adjust to the world market, 3. The establishment of dragline pools for better maintenance of the drainage systems. The industry is not strong enough to provide the initial capital investment, but will be able to pay the operating costs, including depreciation, 164 MAIN LINES OF PRODUCTION

4. Provision of credits for small locally-made copra driers. The mission is confident that these measures would result in a 40% increase in production above the 1952 level, which is set as a target for 1960. In that case the needs of the oil mills, whose capacity is about 50% greater than present copra production, would also be met. This capacity cannot be used economically by importing copra, as the price of copra at the moment is too high to compete with the price of imported oil.

IV. Cogfee During the eighteenth century arabica coffee, the only species of coffee then known, ranked prominently among the polder crops of British Guiana. At the end of the century the colony exported about 4,500 tons annually. Labor scarcity resulting from the abolition of slavery, together with the damage caused by a parasite, the hemileia, led to the progressive abandonment of coffee production in the nineteenth century. Renewed planting took place after the turn of the present century with a new African type (liberica). This is not only immune to hemileia, but also requires less manpower, since the picking period is spread over the six months of the year from October to April. In 1929 the area under coffee was 6,212 acres. Poor prices caused a sharp drop to 2,714 acres in 1938, but much of the ground has been regained. The 1952 census shows 5,050 acres under cultivation (Table 39). Production in 1952 amounted to 756,000 lbs. Coffee grows well on the better drained soils. The majority of the larger plantings are in the sparsely populated Northwest and Pomeroon districts where it is difficult to procure manpower for picking. Hold- ings range from one or two acres up to 60 acres. Methods of cultivation are rudimentary. The trees are not pruned and often grow to great heights which increase the difficulties of picking. Plantations are not weeded and do not receive mineral fertilizer; the pegasse soils show a tendency to exhaustion after some years of cultivation. Yields of good plantations run from 500 to 600 lbs. per acre. Production is wholly absorbed by the local market. Even if it were improved by better processing and grading, the present poor quality of this coffee would preclude its export. 165 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Under these conditions, the development of coffee production in British Guiana can be envisaged only if it is possible to grow other varieties. The coastal zone soils and climate exclude the cultivation

TABLE 39

COFFEE CULTIVATION-1 952

No. Operators Area in Reporting Acres Solid plantations ...... 702 4,039 Scattered plantations ...... 552 145 Crop bearing plantations ...... 602 866 Total ...... 1,856 5,050 Source: 1952 Census. of arabica. The Robustoides and Congensis varieties, with growth requirements similar to those of cacao, might be tested when cacao plot trials are undertaken.

V. Cacao

At one time cacao was successfully cultivated in British Guiana. Plantations were established in the eighteenth century, first on the river banks (Berbice and Demerara), then on the coastal polders. During the nineteenth century a small production was maintained, supplying local consumption and exports. But witch-broom disease, combined with low prices, brought about a collapse in production. In 1915 the acreage under cacao was 2,196 acres, and in 1948 only 375 acres. Cacao planted 20 to 50 years ago has been abandoned and allowed to go to bush. Better prices offered recently have encouraged the owners to clear the bush and to try to rehabilitate the trees; and some new areas have been planted on a small scale. Acreage figures for 1952 (Table 40) show progress. In Berbice and Demerara the plantations are found on coastland clays and silts of the river banks. In the Northwest District, the main 166 MAIN LINES OF PRODUCTION producing areas, they are on hills of red lateritic clays, mixed with concretionary ironstone and colluvia at the foot of the hills. Others are on brown sandy hills of granite formation. A few old cacao plantations are scattered in the interior (Marudi and Kanuku mountains and Mazaruni). Both witch-broom disease and phytophtora are prevalent in Demerara and Berbice, although the former has not yet been seen or recorded in the Northwest District.

TABLE 40

CACAO CULTIVATION-1952 No. Operators Area in, Reporting Acres Solid plantations ...... I... 214 1,009 Scattered plantations ...... 944 179 Nonbearing plantations ...... 591 159

Total ...... 1,749 1,347 Source: 1952 Census.

The Evans Commission recommended that the development of cacao in British Guiana be fully explored. The Commission considered that some of the red soils of the Potaro-Mahdia Konowaruk area afforded the most promise for development. Professor F. Hardy, in 1949, and Mr. C. F. Charter, in 1950, paid short exploratory visits to the area proposed for this major development, and agreed that the highly leached soils, extremely low in plant nutrients, would be unsuitable for cacao. The high rainfall would favor vegetative growth at the expense of fruit production, and would result in considerable losses of pods to fungus diseases. In 1950 the government of British Guiana appointed a Cocoa De- velopment Officer to investigate further the potentialities of the colony for cacao production. Cultivation Problems. The main soils of the coastal zone do not correspond to the traditional definition of good cacao lands; these should be deep, of medium texture, loamy, not heavy or coarse and 167 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA well aerated and drained. However, they appear to have been cultivated satisfactorily heretofore in British Guiana and Surinam. In Surinam a program of plantation development is already under way and its success appears probable as soon as the soils have been well drained (with a water level below three feet), loosened and protected by mulching. It is probable, however, that the life of these plantations will be shorter than for deep and loamy soils. In the interior the fertility of the soils associated with basic rocks seems doubtful; that of the white or brown sands series, associated with granite or with the geological formation of pleistocene sands, appears even more so. Nevertheless in the Northwest District some plantations grow cacao, and produce 100 to 300 lbs. of dried beans per acre. Fungus diseases can be checked by sound agricultural techniques. A program for plantation rehabilitation is under way in the British West Indies and in the African territories to fight against diseases (swollen shoot in Africa and witch-broom in the West Indies) in order to improve yields. High-yield strains have been developed by the Imperial College of Agriculture in Trinidad, three of which appear immune to witch-broom disease. Production of rooted cuttings of high yielding types requires an extensive organization and delicate techniques. It is estimated in Trinidad that the rooted cutting costs $0.90 per unit, i.e. $300 per planted acre. But such types can increase yield, on an average, up to 500 lbs. of dried beans per acre and to more than 1,000 lbs. on the best soils. If cacao production is to develop in British Guiana, it should be so organized as to benefit from every recent technological improvement, in order to produce quality cacao at competitive prices. This will probably require a governmental organization for producing and supplying clonal rooted cuttings. It also calls for centralizing the plantations, to make possible mass fermentation and the use of artificial driers which the climate requires. These conditions preclude success from small, scattered plantations. The cocoa development program of the Department of Agriculture fills these requirements for the most part. The program will: 1. Establish some Trinidad selections and organize nurseries and propagation sheds, 168 MAIN LINES OF PRODUCTION

2. Lay out field trials in the following places: Hosororo, N.W.D. - laterite red clays Bartica - brown sandy soil Demerara river - alluvial clay silts Berbice -- alluvial clay silts Further field trials do not appear desirable at this time, since they would result in a sacrifice of individual maintenance and attention. A proposal to start a cacao estate seems premature; the mission suggests instead a preliminary test of systematic plantations on a river bank settlement site. VI. Other Crops Citrus. Cultivation of citrus fruits, which in 1938 occupied an estimated 1,400 acres, occupied a total of 2,201 acres in the 1952 census (Table 41). Of this area Berbice had 342 acres, Demerara 1,028, and Essequibo 831. Oranges predominate in the cultivation.

TABLE 41

CITRUS CULTIVATION-1952

No. of Operators Type Acres Reporting Production Oranges ...... 1,666 5,560 2,128,100 lbs. Grapefruit ...... 172 993 438,100 lbs. Limes ...... 163 4,170 588,300 lbs. Other citrus (mainly lemons and tangerines) ...... 200 1,921 726,211 lbs. Source: 1952 Census.

Production is widely scattered among many small farms. There are a few plantations of several acres, mainly in the Northwest District where a small lime oil factory produces distilled oils. The total citrus output barely meets the needs of local consumption, and there are no exports. The best conditions for citrus in the coastal zone are found on the sandreef soils and the riversilt soils. The frontland clays, because of their compactness and often defective drainage, are less favorable. In 169 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA the Northwest District citrus is cultivated on red lateritic clay and the brown sand hills. The plantations are generally poorly maintained and suffer from mineral deficiencies (zinc and manganese). In the Northwest District a lack of labor handicaps production while expensive and infrequent transport to Georgetown, coupled with abrupt price drops at harvest time, make marketing difficult. As a result part of the crop is sometimes left on the trees. Bananas. In the coastal zone the bank riversilts are the best soils for bananas. The frontlands are generally too compact (index of texture over 48) and too acid, and the salinity of the subsoil may in certain sectors endanger the banana trees. The pegasse soils have a good texture, but they are also very acid. Acidity is particularly dan- gerous for its effects on Panama disease; moreover, banana yields on acid soil decline quickly after about five crops. Some attempts at cultivation undertaken in recent years have failed because of wilt disease. The question merits examination on the experimental level. Trial plots should be set aside for this production in the central agricultural station, in pegasse or riversilt soils which are well drained and easily irrigated to alleviate the irregularities of the short rainy season. In Surinam the problem of Panama disease has been solved fairly satisfactorily by the introduction of the Congo banana (its Jamaican name is Robusta) which is said to be better than the lacatan banana now being exported from Jamaica. This variety is subject to leaf spot disease (Cercospora musae), as indeed are all commercial varieties, but this can be controlled by spraying with the common Bordeaux mixture. The parallel problem of marketing and eventual foreign outlets must be thoroughly studied. To achieve success, production should be large enough to provide regular ship cargoes. Oil Palms. Thes Elaeis guineensis Jacq of African origin is known only as an ornamental palm in British Guiana. Evidently it can be grown in the whole tropical zone of Central America, and in Brazil, where it has been the object of a few attempts at cultivation. Whether it can be economically exploited in British Guiana remains to be determined. 170 MAIN LINES OF PRODUCTION

To thrive, the African oil palm requires abundant rainfall, well distributed throughout the year: 1,400 to 1,500 mm. is a minimum and the optimum is between 2,000 and 3,000 mm. It requires the high temperatures of an equatorial climate (of 770 F. annual average), ample light, an altitude of less than 500 meters on the equator, and loamy soils containing 25% to 40%o of clay, which afford the roots a penetration from four and a half to six feet. Highly nutrient soils are preferable, but, to a certain extent, it is possible to correct any deficiency by applying fertilizers provided the structure of the soil is satisfactory. The best climatic conditions are found in Sumatra and Malaya. There, paradoxically, the palm grows better than on its con- tinent of origin, where its growth is often affected by insufficient and badly distributed rainfall or by great cloudiness. In the light of this background, it appears that: 1. This sun-loving palm may suffer from the great cloudiness in the entire Equatorial Zone, especially in the Mazaruni-Potaro region; 2. Soils favorable to its growth would be, in order of priority: a. The igneous and metamorphic rock soils of the interior peneplain, loamy, brown, or chocolate brown, sufficiently deep and without boulders; b. The best brown sand hills comparable with light soils of the Lelydorp series in Surinam; c. The riverside silt banks in the best drained part, which is also the area of the lightest soils. 3. For these soils, and especially the second, techniques which tend to maintain or to enhance the organic matter and to prevent all erosion should be the rule. This means felling or poisoning trees without burning, mineral fertilizers on sandy soil, etc. In the proposed experimental program of the Department of Agri- culture, plots made up of selected seed imported from French West Africa and the Belgian Congo might be tried at three stations: 1. Mazaruni-Potaro Station (to be established) in soils on basic metamorphic rocks, 2. Bartica, on brown sandy soil in the trial plot proposed for cocoa trees, 3. Main Station (to be established), in that part located on river silt. 171 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Miscellaneous Food Crops. Food crops such as maize, vegetables and cassava, yams and sweet potatoes are grown in village areas in all coastal districts. The cultivated area devoted to these (Table 42) has followed the growth of local consumption in the past; it amounted to about 13,000 acres in 1938. Since 1948 it has been fairly stable at 20,000 to 22,000 acres. Total value of production in 1952 was estimated at $1,810,900.

TABLE 42

CULTIVATION OF MISCELLANEOUS FOOD CROPS-1952

No. of Operators Total Area Reporting (acres)

Berbice ...... 4,663 6,063 Demerara .4,787 8,504 Essequibo .2,616 6,802

Total .12,066 21,369

These crops are most widely grown in the Pomeroon and North- west Districts (Essequibo). Here the average cultivated area per farmer is 2.6 acres, as against 1.7 acres in Demerara and 1.3 acres in Berbice. Shifting cultivation is often practiced on the river banks and pegasse soils, making production somewhat erratic. However, the output provides some 240 calories daily consumption per capita (out of a total of 2,563 calories) and appears sufficient for present demands. Some increase will be needed as the population increases.

VII. Livestock

There are approximately a quarter of a million head of livestock in the colony-chiefly cattle, with smaller numbers of sheep, goats and swine. Except for some cattle in the Rupununi district, most of the livestock is concentrated on the coastal plain. At the beginning of the century, cattle exports were high. Prior to the last war supplies of meat were still more than sufficient for local needs and in 1938, in fact, over 1,000 head of cattle and 940 pigs were exported. 172 MAIN LINES OF PRODUCTION

Since then, local price ceilings on meat, changes in export demand, naturally poor grazing conditions, cattle losses in the 1949 floods, and other factors have tended to discourage production. Livestock numbers (Table 43) have declined from their earlier levels in part because rice cultivation has extended into areas formerly used as grasslands during the rainy season. The number of pigs, partly fed on nut residues, has declined along with the drop in coconut output. Local production of meat is now far below existing demand, which is rapidly increasing through the growth of population, higher standards of living and the changing food habits of the East Indian residents. The return per acre for animal husbandry and for ranching is extremely low. Calculations show that in the most favorable parts of the coastal belt, the yield is not more than $20 per acre per year. For dairy cattle, with special care, the gross income may reach a level of $60 per acre. In the Rupununi, the output is only about 1-11/2 steers per square mile per year, equivalent to $100 or $150 per square mile or about 16¢ to 240 per acre.

TABLE 43

LIVESTOCK, MEAT AND MILK PRODUCTION Livestock Population Production' (in thousands) (in million lbs.)

Sheep and Beef and Year Cattle Goats Swine Pork Milk av.1937-40 133.1 44.6 26.1 5.4 18.0 1946 189.4 59.5 34.6 7.0 22.0 1947 193.2 65.4 30.4 7.5 26.5 1948 186.3 58.8 28.2 7.9 22.5 1949 n.a. n.a. n.a. 7.7 23.9 1950 185.0 45.9 28.0 6.8 22.6 1951 n.a. n.a. n.a. 6.4 21.8 1952 171.0 50.9 25.2 7.6 21.2 Sources: Annual Reports, Department of Agriculture; Agricultural Cen- sus 1952.

Rough estimate. 173 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Coastal Plain Husbandry. About 130,000 head of cattle are found in the coastal zone, together with nearly all the other livestock. A few landlords keep large herds; but most of the cattle belong to small farmers, who graze their animals on the fields of large holdings or on crown land at agistment fees of $0.50-$1.00 per head per month. About 15% of the cattle are used for draft, a small number for dairying and the rest for meat. The cattle graze on the rice fields after harvest and on the saline frontlands. During the rice season they are put into the poorly drained backlands, marshes and conservancies, behind the polders. The lands are swampy and cattle are commonly seen deep in water and nibbling unnutritious grasses. Because of the pasture composition there is no lack of bulk carbo- hydrate food except in times of protracted drought, but there are deficiencies in protein, phosphorus, and calcium. Dairy cattle receive small amounts of concentrated feed supplement, partly produced locally and partly imported. The greater part of the commercial feed, of whatever origin, is used for horses, mules and oxen on the sugar estates. Improvement in beef production in the coastal belt is possible only if more land becomes available. In the Boerasirie and Corentyne schemes some plans have been made for grazing grounds. The experience has been, however, that as soon as a field is more or less sufficiently drained, the farmers plant rice, for even a poor yield of 10 bags per acre will bring three or four times as much money as it would from ranching. Thus it is clear that only a small increase in meat production can be expected from the irrigation and drainage schemes now under construction. On the other hand, a considerable increase in milk production is possible if certain conditions are fulfilled. Cattle on River Banks. The technical and economic difficulties impeding the expansion of cattle breeding behind the cultivated area of the coastal zone suggest the alternative possibility of using for this purpose the uncultivated and abandoned riverain land. This would include both banks of the Essequibo river, from the Bonasika river up to the foot of the first falls on the Essequibo and Mazanui rivers, the Demerara river from the Hauruni river up to Seba, and the Berbice river from Mara to Paradise. 174 MAIN LINES OF PRODUCTION

The true riverain lands are well drained and obviously suitable for cattle breeding. The animals now there show no sign of mineral deficiency. But the exploitation of these lands, involving their clearing and at least a rudimentary drainage system is comparatively costly. For this reason it appears more economical to set them aside for cultivation; fortunately cattle breeding can easily be introduced jointly with cultivation. A study of this possibility should be included in the program of the proposed riverain pilot project. Rupununi Savannah Ranching. Cattle herds of the 14 major ranches and the Rupununi Development Corporation roam 2,405,500 leased acres within the 6,000 square miles of the Rupununi savannahs. The cattle number about 43,000 head, of which 25,000 belong to the development corporation. Output marketed in the last tlhree consecutive years was 3,865, 5,168, and 4,625 head respectively, an average of a little more than one head per square mile. The area is crown land. The Corporation, which has the only ranch in the southern savannah, operates 2,600 square miles under a 21- year lease at $2.00 per square mile per year. For the others ranching is authorized under a form of annually renewable permissions at a rental of $15 per year for each 50 square miles. After five years the tenant may obtain a 21-year lease with renewal rights, provided that certain stocking and building requirements are met. Ranchers have asked, with some justification, whether a 21-year lease at the outset would not be preferable, since this would make possible a normal amortization of the moderate initial investment required for successful operation. Conditions in the Rupununi savannahs are marginal. By grazing only 10 to 15 cattle to a square mile, the ranches can do without mineral feeding except in the breeding paddocks. At the same time, such a low carrying capacity of the range makes supervision costly. Transportation is also expensive. Market cattle are either slaughtered at the Lethem abattoir and carried by air to Georgetown at a cost of 61¼4r per lb., or they are driven down a 200-mile trail from the fringe of the northern savannabs to Tawama on the Berbice river, a trip which causes losses in weight or from death of 5%o to 10%o. In 1952 approximately half of the output was transported by air as meat. High transport costs affect equipment and supplies as well, and impede improvement of pasture by liming and fertilization. 175 THE ECONOMIC DEVELOPMENT OF BRITISH CG/lANA

Intermediate Savannahs. Within the forested areas there are other grasslands which probably total 2,000 square miles. The largest block-the intermediate savannah (the Ebini downsj)-lies some 50 miles inland from the mouth of the Berbice river. These savanrkahs are almost unexploited. The soil belongs to the white sand series and appears to be even less fertile than that of Rupununi. Deficiencies in phosphorus, calcium and presumably other elements are quite noticeable in the livestock. Cattle grazed here without full mineral supplement do not keep in good condition, and have a very lowv reproduction rate and a high death rate. Owing to their location, however, these savannahs enjoy some technical and economic advantages over those of Rupununi. Cheap water transport is available for equipment, fertilizers, mineral corn- pounds, salt and other supplies, as well as for carrying animals to market. The climate is more humid, the water table is higher, and there is a possibility of improving the grasslands with fertilizers and fodder crops. With these facts in mind, the Department of Agriculture is setting up an experimental station at Ebini. The mission feels that this station will be able to evaluate the economic feasibility of ranching in this region, provided that its experimental work is carried out oI a commercial scale. It is suggested, therefore, that the station be operated as an experimental ranch of about 100 square miles, with 500 breeding cows. The capital cost for such a project is estimated at $72,200; yearly returns for the first five years would need to be supplemented by a recurrent annual expenditure of about $85,500. Range Improvement. Conditions for improvement of ranching were studied in 1951 by Mr. J. S. McCorkle."1 He found the potential carrying capacity of the ranges to be much greater than the present livestock population, but noted that improvement in ranching facilities and in grazing management must be introduced before any increase in cattle can be considered. Amon,g other faults, the ranges have been misused, and have deteriorated through indiscriminate burning and overstocking in localized areas. Nutritional deficiencies must be corrected before improved breeding will give satisfactory results.

J. S. McCorkle, Report on ranch study in the RupununLi, with recommiendations jor improveement. 1951. 176 MAIN LINES OF PRODUCTION

Apart from grazing control, grassland improvement calls for introduction of more nutritious cover. Some of the best known tropical species of pasture and fodder grass and legumes are under study. Botanical research has found two very good local species: locuntu grass (Ischaemun vulgare) and a legume (Alysicarpus vaginatis). Direct mineral feeding, although perhaps necessary at present, is in no way a satisfactory substitute for soil improvement. Excessive acidity and certain mineral deficiences have a decisive effect upon the growth of pasture, and thereby limit range carrying capacity. To some extent, deep-rooted legumes, if they can be established, may help to correct surface deficiencies by tapping the subsoil. Where liming is called for, it is difficult to suggest substitutes. Cattle Breeding. The local cattle, the so-called creole breed, are of Spanish origin. They are hardy and in many ways suited to local conditions. On the other hand, the ratio of calves to cows (45.2%o according to the 1948 census) indicates a very low birth rate. The cattle are slow in maturing, and the marketing age exceeds five years. Average carcass weight is only about 380 pounds, while the best quality carcasses dress out at 52%o. Breeding experiments are in progress. For beef cattle, the best local cross is thought to be one-half creole, one-quarter red poll, and one-quarter zebu, but experiments with a higher percentage of red poll and zebu have been carried out. For dairy cattle, the Depart- ment of Agriculture maintains on the coastland purebred and graded bulls of Holstein-Friesian and Sahiwal for upgrading'local cattle. The farmer has the choice between I-Iolstein, three-quarter Holstein and Sahiwal, onebhalf Holstein and Sahiwal, and pure Sahiwal. The best local dairy cross-breed is thought to be between one-half Holstein. Sahiwal and one-quarter Holstein-Sahiwal. Within the next few years, many of the existing stud and breeding units will be replaced by artificial insemination stations. Dairying. Although British Guiana has regularly imported a considerable quantity of dairy products, including dried or preserved milk to a value of $1.5 million in 1952, local dairying has not been significant. The Georgetown consumer is reluctant to buy fresh milk even at the local price of 800 per gallon. The quality is poor and variable, partly because of its long transport under tropical condi- 177 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA tions. The Milk Control Organization collects the greater part of it over an area of 60 miles along the main road to Mahaicony, in trucks which have no cooling equipment; before the trucks pick it up, the milk has already travelled several miles by slow boat or bicycle. Milk produced early in the morning, and without immediate artificial cooling to arrest bacterial growth, does not reach Georgetown until afternoon. For lack of a pasteurization plant and cold storage at Georgetown, it must be distributed raw directly upon arrival. Under these conditions the Milk Control Organization has not been able to sell more than 1,400 gallons per day, despite the potential demand suggested by import figures. Since 1949 Georgetown has consumed only 0.11 pounds of fresh milk per head per day (480,000 gallons per year). For such a population a consumption of 0.3 pounds per head per day would be more reasonable, and the mission is confident that with pasteurized milk this target can be reached. The quantity needed for Georgetown alone would thus be raised to 1.3 million gallons per year. With this market available a considerable increase of dairy farming in the neighborhood of Georgetown, in particular on the river banks of the Demerara and Essequibo (Boerasirie project), would become a real possibility. To accomplish this improvement, a cold storage and pasteurization plant is needed. For an output of 2,500 gallons per day the estimated investment is about $170,000. Calculations show that such a plant, paying the milk producer a profitable price of 81/20 per pint, would be commercially successful at a retail price of 120 per pint. The main agricultural stations should study mixed farming involving dairy cattle under local conditions, and prepare to advise farmers on the best dairy practices. It is. likely that an increase in this type of farming will contribute substantially to land productivity as well as to farmers' income. General Improvement of Livestock Production. In addition to the problems peculiar to each type of animal husbandry, there are certain problems they have in common. The most fundamental of these problems is that no significant improvement in livestock production can be expected until it becomes profitable for the producer. There are several ways in which the government can help; but the producer must also help himself. Successful cattle raising is not a 178 MAIN LINES OF PRODUCTION

haphazard affair, but one requiring a great deal of care, patience and attention to detail. Farmers must understand that the mere possession of cattle, and their occasional movement out of the way of the rice crop, does not guarantee an income. Research results are useless unless the farmer applies them; and while the government can provide advice and marketing aids, only the farmer can give the all-important care to the animals themselves. In this respect the Department of Agriculture has an important educational job to do. Improved breeding should lead to earlier maturity and a better return in meat or milk. This, howe'ver, is a long-term proposition. The normal slow rhythm of cattle growth does not allow quick results. Moreover, gains through breeding cannot be realized without a parallel improvement in livestock nutrition. A superior milk cow, for example, does no better than a poor one unless it is fed properly, and what it eats is as important as how much. On the savannahs the ranchers appear reluctant to put more capital into their operations as long as the plane freight is high and the cattle trail remains in its present deplorable condition. Enlargement of the slaughterhouses with the provision of cold storage in Lethem and Georgetown (now planned and partly under construction) and improvement of the cattle trail should give incentive for better management. If, in the meantime, meat prices were gradually raised by about 20%o, and long-term credit made available on suitable terms, conditions would then encourage improved management and mineral feeding. Together, these measures could lead to an output from the Rupununi of about 9,000 steers of better quality, with a dressed carcass weight of about 3.5 million pounds a year. To improve livestock methods generally an agricultural experiment station is being established at St. Ignatius. An appropriation of $240,000 has been made to cover initial expenses and recurrent costs during the next five years. Its principal service will be in the Rupununi area, of course, but its contributions will be more broadly applicable. The mission recommends for this station not only a permanent ranching expert to manage the operation and to advise the ranchers, but also a veterinary surgeon to assist in control of diseases and parasites. The veterinary service would probably involve an additional recurrent cost of $82,000 for the five-year period. 179 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

VIII. Fisheries Statistics on the fishing industry (Table 44) are available only since 194612 and those on the catch cover only that portion landed at Georgetown. Rough estimates of fish taken annually by the colony range from 10 to 12 million pounds. From the data in Table 44, an upward trend in the coastal and estuary fisheries (fish landed at Georgetown) 'may be observed, although the number of fishermen has not increased. Fishing Grounds. At present the most productive coastal fishing grounds are located off the Northwest District from the Pomeroon to the Venezuelan border. Formerly the areas offshore from the Ber- bice and Corentyne were preferred. In the absence of factual data on the productive capacity of the grounds and the breeding habits of the fish there, measures to improve the output of the fisheries might easily result in overfishing. A survey is indispensable to provide the basis for fishing ordinances designed to keep the grounds in permanent production. The mission recommends therefore the purchase of an exploratory vessel at a capital cost of about $45,000. The annual recurrent cost of its work, including local costs for a fishery expert who might be secured through international technical assistance, would be about $10,000. Boats. Apart from a large deep-sea fishing enterprise which has six schooners, fishing appears to be entirely a small-scale affair. About 570 boat owners operate with 731 gear units in the coastal and estuary fishing grounds. Only 55 of the boats are engine propelled with five inboard and 50 outboard engines. The total capital value of the equipment (boats, engines and gear) of the coastal, estuary and inland fisheries in 1952 was estimated at $725,000, of which $275,000 was invested in boats, $32,000 in engines and $418,000 in gear. The average fishing vessel under sail makes three runs a month to the fishing grounds as against five runs per month for the few boats with inboard engines. Motorization of additional boats would bring important results. The average catch per run is about 2,000 lbs. Five additional trips a month would raise the average catch per vessel

' Annual Reports of the Department of Agriculture 1946 to 1951 and W. H. C. Allsop: The work of British Guiana's Fisheries Department (Monthly information bulletin of the Caribbean Commission-Vol. 5, No. 10-1952). 180 MAIN LINES OF PRODUCTION from 6,000 to 10,000 lbs. per month. Savings on ice would also result, and the boats could carry heavier loads, including scrap now discarded but useful for fishmeal. At least 150 of the present vessels are large and strong enough for an inboard engine.

TABLE 44 THE FISHING INDUSTRY Year Coastal and estuary Landed fish at Estimate Imports Estimated fisheries Georgetown of total consump- value of tion output per head Boat Vnits Persons Amount Valute in pounds Owners of fully in in m. value Gear engaged lbs. $ lbs. $ 1938 ------5.3 0.3 34.9 1946 - - - 2.7 - - 3.1 0.9 26.8 1947 563 712 2,127 2.8 - - 4.7 1.1 30.0 1948 562 - 2,139 2.5 0.8 2.6 4.6 1.1 33.7 1949 586 747 2,235 3.9 1.1 3.1 4.7 1.2 34.3 1950 565 731 2,185 4.6 1.4 3.6 4.3 1.4 35.0 1951 - 731 2,200 4.1 1.4 4.0 5.0 1.2 37.6 1952 - - - 5.0' 2.01 4.51 5.6 1.6 38.4 Sources: Annual Reports of the Department of Agriculture; Reports of the Development Offlice.

' Preliminary estimates.

The capital investment per boat, for the engine and some improved equipment (better ice boxes, for instance), would amount to about $2,000. Running costs, including depreciation, have been estimated at $100 per month. Calculations show that, even if the price of fish should drop from 32 cents per pound to 25 cents with larger landings, the profit from engine operations would amount to an additional $400 per month per boat. To promote motorization, credits on fair terms should be made available. One problem for a credit agency is the impossibility of insuring the vessels, and tberefore special funds should be provided to serve as security against losses of indebted boats. Actually the loss of a vessel is rare; hence a security fund of $5,000 annually would 181 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA probably serve for all loans to fishermen, provided that measures to ensure adequate marketing are undertaken. The target should be to provide 50 boats with engines during the years 1953-58. This should improve production by 2.5 million pounds by the end of the period. The loans should be recoverable in four years. If 10 engines were delivered each year, the capital investment needed would amount to $20,000 in 1954, and total investment from 1954 to 1958 to $50,000. Ice and Gear. Cheaper ice and gear would reduce production cost. A governmental ice factory, nearly completed, expects to produce industrial ice at $10 per ton, while the price now charged to fishermen amounts to $16.80 per ton. A home-knitted pin seine gear made from imported twine costs about $2,000. The cost of a ready-made imported gear is only $1,000, which is even less than the cost of imported twine for home-knitted gear. It is therefore recommended that a few ready- made units be imported for demonstration and testing. A sum of $5,000 in 1954 would be enough. As the fishermen usually save for the replacement of their gear, no large credit funds appear to be needed for this purpose. Marketing. The wharf and the fish markets in Georgetown are in very poor condition, although the new ice factory and cold storage facilities will soon be ready. Many problems of marketing and other difficulties would be solved if a new wharf, a central market and a fishmeal factory were erected next to the ice factory and cold storage plant. Additional capital funds needed for this purpose would amount to about $160,000. If this project is undertaken, it would provide an efficient center for the development of the coastal fisheries. The project would appear to be potentially self-supporting, with a marketing fee of 3 or 4%a, provided it were made compulsory to sell all fish landed in Georgetown at that market, after an appropriate sanitary inspection. The capital cost of such a market would be about $40,000. Inland Fish Culture. Several thousand acres of foreshore swamp- land are available for fish culture. Until now inland fisheries have never been a major activity of the colony. To investigate the possibilities, a 200-acre station should be established on tidally flooded land. The best available location appears to be off Mahaicony on the 182 MAIN LINES OF PRODUCTION west coast of Berbice. A capital allocation of $20,000 would cover the cost of the outlay and equipment. For the first two years the net operating costs are estimated at $10,000, but they would decline to $3,000 annually thereafter. A potential area for fresh-water fish culture lies in the flood-fallowed cane fields. Interculture of fish on rice fields, and pond culture on rice fields after harvest, offer opportunities both for developing fish production and improving the economic position of farmers. The mission recommends the establishment of a fresh water station in the neighborhood of the brackish water fish station, to investigate such possibilities. The capital outlay is estimated at $10,000 and the recurrent cost about $2,000 per year. As long as no research in this field has been undertaken, it is not possible to evaluate possible productivity. Results in Surinam and Indonesia suggest a potential production of about 200 lbs. per acre for brackish water ponds, 100 lbs. per acre for rice field ponds and 30 lbs. per acre for intercultivated fish.

183 CHAPTER 14

Special Problems in Agricultural Development

I. Food Balance

One of the fundamental problems in development is the relation ship of food supply to population. The mission has considered this first of all, from the standpoint of British Guiana's expected popu lation growth. Of equal importance is the question of dietary balanci with its influence upon the health and productivity of the population Food balance data for the colony in recent years will be found ii detail in Appendix Table 58; Table 45 gives essential features o these data. TABLE 45

DAILY FoOD INTAKE IN GRAMS PER CAPITA

Total Protein Product 1938 1946 1950 1952 1938 1946 1950 195. Cereals ...... 399 382 378 390 33.0 30.4 31.8 32. Other vegetable products (sugar, starches & oils).. 314 362 347 358 7.0 6.4 6.4 6.' Vegetables and fruits ...... 31 57 68 65 0.3 0.5 0.7 0.' Fluid and preserved milk, butter and cheese ...... 90 88 84 75 3.9 4.0 4.1 3. Meat, fish, eggs ...... 75 70 77 81 15.3 13.0 14.5 15. Total proteins: 59.5 54.3 57.5 58. Animal proteins: 19.2 17.0 18.6 19. Total calories ...... 2,645 2,585 2,557 2,580

Allowing for the fact that estimates of production of fruits, mil and fish are not always reliable, there seems to have been no substar 184 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT tial change in food intake since 1938. There was, to be sure, a decrease in protein intake, particularly of animal proteins, during and immediately after the war, but the data indicate that in recent years the 1938 level has been practically restored. The present average intake of about 2,580 calories per head per day appears sufficient to meet the minimum over-all caloric requirements. There are, however, some specific deficiencies in the diet. The intake of vegetables is far too low. Fruit consumption is also on the low side. These together, now totalling about 65 grams a day, should be increased to at least 100 grams. Since the climatic conditions are not too favorable for vegetable growing, it seems advisable to place increased emphasis on fruit production and consumption. Further- more, the protein intake seems somewhat low, although superior to that of many tropical regions. An increase to about 60 grams, including not less than 20 grams of animal protein, would be advisable. This will require a greater output of milk, beef and fish. Except for sugar, the only significant foodstuff exported is rice. On the other hand, as seen from Table 46, large quantities of foodstuffs are imported. The mission has considered whether some of these items could be better produced domestically. Wheat, potatoes, onions and garlic, which are the bulk of the vegetable items, cannot be produced satisfactorily in the colony. Opportunities for expanding the production of vegetable oils are not too good. Milk, meat and perhaps the production of fish and pulses offer better prospects, and the development program should give increasing attention to them. In theory flour and potatoes could be replaced in the diet by locally produced rice. Practically, however, it has to be recognized that the eating habits of a people cannot be changed rapidly. Calculations show that in 1952 the export of rice had a value of $14.13 per capita while the import ,of flour and potatoes amounted to $12.26. The exported rice represented 605 calories and 11.3 grams of protein per capita per day, while imported flour and potatoes represented 527 calories and 16.3 grams of protein per capita per day. At present price relationships, this appears to strike an economic balance. On the basis of the recommended diet and the estimated population growth, it is possible to set a target for 1960 in production and imports of food. Calculations are presented in Table 47. The target diet gives a minimum of 2,480 calories daily per head, including 62 185 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA grams of proteins of which 23.4 grams are animal protein. The production outlook is such that the mission feels that this can be achieved, partly through increased domestic output, and partly through additional imports. The gross import of cereals will probably have to be

TABLE 46

EXPORT OF RICE AND IMPORTS OF FOODSTUFFS IN POUNDS PER CAPITA

A1verage Value per capita 1938 1948-51 1952 in B.W.]. $-1952 Population ...... 334,661 419.545 450,000 Export of Rice ...... 87.1 136.2 135.5 14.13 Imports of: Flour ...... 109.1 104.1 114.3 10.43 Potatoes ...... 26.1 26.4 33.7 1.83 Pulses ...... 14.5 10.0 11.7 1.84 Vegetables ...... 8.4 11.2 8.1 0.55 Butter, cheese and margarine ...... 5.3 4.5 6.0 3.77 Milk, all kinds ...... 6.4 9.7 9.1 3.29 Edible oil and lard.. - 1.2 3.4 1.06 Meat1 ...... 7.1 5.5 5.2 2.19 FiSh2 . 15.8 10.6 12.6 3.58 Fruits and nuts ...... 7.3 4.0 4.0 0.84

Total 29.38

174%o salted and pickled. 2 20% canned and bottled; 80% smoked and dried. increased by 19%, pulses by 13%o, vegetable oil by 67%o, vegetables by 12 %o,butter, cheese and preserved milk by 7 %' and meat by 290 %. Imports of fish and potatoes could be held quantitatively at the 1952 level. II. Land Extension One method for obtaining an increase in agricultural production is through more intensive farming. Indeed, earlier in this report the mission suggests various measures in this direction. Admittedly, how- 186 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT ever, the process of agricultural intensification cannot proceed rapidly, but demands patient research and sustained technical assistance to a multitude of individual farmers through the extension service. It would be futile to hope for striking developments within a span of a few years. Clearly, then, the principal contribution must come through expansion of the cultivable area. What is more, the rate of population growth has made it necessary to view the problem from the stand-

TABLE 47 PRODUCTION AND IMPORTS TO REACH FOOD-TARGET, 1960 (Estimated Population 504,000)

Grams Total Production and 17inports needed per day food to meet target per needed Produc- Import Index: 1952-100 Product capita millions Pio______target of lbs. Produc- Import; 1960 tion

Rice ...... 225 90.7 240.1' - - - Other cereals ...... 150 60.4 - 40.3 - 119 Ground provisions and potatoes ...... 185 74.6 59.5 15.1 120 120 Pulses ...... 15 6.0 - 6.0 - 11.3 Sugar ...... 80 32.2 606.02 - - - Vegetable oil and margarine ...... 35 14.1 11.1 3.0 141 167 Vegetables and fruits.. 100 40.3 38.3 2.0 213 112 Butter, cheese and preserved milk ...... 16 6.4 - 6.4 - 107 Fluid milk ...... 100 40.3 40.3 - 185 - Meat ...... 40 16.1 10.0 6.1 140 390 Fish ...... 50 20.1 14.5 5.6 121 100 Eggs ...... 4 1.6 1.6 - 205 -

1 Estimated production 1960 after completion of irrigation works; available for export: 150 million pounds. 2 Estimated production about 275,000 tons; available for export: 574 million pounds. point of employment as well as that of food supply. This must affect the manner in which land extension is carried out. 187 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Rural Population vs. Employment. Available data indicate'that between 1931 and 1946 the gain in rural population averaged only 2,097 per year, while from 1946 to 1951 the average increase was 5,780 per year, with the heaviest pressure on the land between the Essequibo and the Corentyne. Today, the rural population growth is perhaps 9,000 per year. Chronic agrarian under employment looms as one of the main problems of the present farming structure. The prospect for expanding employment in the sugar estates is practically nil. The development of ranching in the interior will provide but little additional employment. The proposed cacao estates face an unknown future, while the outlook for the proposed banana plantations appears even more uncertain. Rice mechanization schemes not only diminish the opportunities for providing more people with land, but on the whole, appear to be economically questionable. (See Rice, Chapter 13.) According to the 1946 data, 58% of gainfully employed persons in rural areas were in agriculture. Using 55 % as a future trend figure, and based on the present rate of increase of the rural labor force, it would appear that in the years 1953 to 1960 the number of farmers will increase by about 600 per year. The number of farms needed would therefore increase to about 24,800 in 1958 and 26,000 in 1960. In the prevailing circumstances a farm of perhaps 10-20 acres on the frontlands and riverbanks, or up to 20 acres in the backlands, could provide an adequate living for a farm family. At present only 282,800 acres of the coastal areas are under cultivation. It has been estimated, on the basis of the Hutchinson proposals, that over the next 15 to 20 years major long-term drainage and irrigation projects can reclaim from 300,000 to 400,000 acres more. Estimates of the additional acreage available for cultivation in the coastal zone and on the riverbanks go as high as 650,000 acres, but such estimates are extremely uncertain. To settle 3,000 new farmers over the next five years on farms of up to 15 acres would require up to 45,000 additional acres. To raise the size of existing farms below 10 acres to at least that level would require some 72,000 acres. The expanded Boerasirie and Corentyne schemes which will be undertaken in the next five years will provide about 61,000 acres in drained and irrigated land plus additional land 188 MAHAICONY - ABARY R ICE PROJECT FIG. I

_r - A

.~ ~ ~ ~ ~ ~~~Y

:~~~~~~~~~~~~~~~-~ SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT available for pasturage. The Onverwagt scheme will bring into mechanized rice cultivation some 6,000 acres. The expanded schemes, plus additional riverain lands wvhich may be opened by public or private enterprise, wvill be barely enough to meet the most urgent needs by 1960. It is therefore evident that surveys are urgently needed to discover what over land can be made available after 1958, and in particular to prepare for the implementation of the Hutchinson proposals for the reclamation, drainage and irrigation of additional coastal lands. Not only new land but a new land policy will be needed. Heretofore local agricultural development has been conceived largely in terms of production; the aim for the future should no longer be "production" alone but also employment of as many people as possible at a satisfactory level of production. Since the agricultural resources of the colony are limited, emphasis must be placed on the development of family farms and the construction of an economically strong farmers' community. Even on these farms, some mechanical help will be required at peak labor periods in plowing, planting and harvesting. Maintenance of the drainage system, of utmost importance at such periods, should be unde-rtaken with machine help from a government pool which should be eventually turned over to cooperatives. A few tractors and drying facilities also should be made available. With such help, the ideal acreage of the farms might vary from 10 to 25 acres, depending upon conditions in individual areas. It is clear that every effort must be made to bring as much land as possible into cultivation before 1960. This program should include suitable land along the river banks now lying waste. Where owners are not willing to take suitable action, it may be necessary for the government to intervene in making such land available to farmers. No new schemes for mechanization of the farms-apart from emergency help-should be undertaken. Meanwhile a thorough study should be made of the possibilities and costs of growing spring crops and increasing the yield per acre, in order to offset any decrease in the average cultivable acreage per farmer in the next few years. Projects which aim at these goals should be given high priority, and legislative measures and efforts which will help to recover usable agri- 189 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

cultural land for peasant farming in this way should be undertaken as soon as possible. Inland Development. Prospects for increasing cattle production in the savannahs have been discussed. For crop cultivation of a kind which can give additional employment, howvever, the interior offers little opportunity at the present. Not much is known of the soil potentialities; what little is known suggests that they are poor and access is difficult. In a short-run program, settlements in the interior should be considered only if they offer immediate possibilities for such crops as coffee or cacao, which supplement sugar exports, and which could justify the expense of an interior road network. Even these cannot be considered sound until there is more knowledge of the soils. Meanwhile it should be noted that forestry and mining are bringing with them some associated agriculture, especially in ground provisions. The svstem of shifting cultivation used in these localities is likely to cause not only deterioration in the forests themselves, but also excessive depletion of the soils near population centers. It is therefore recommended that an experimental station be established in the Potaro-Mazaruni regions to ascertain the most appropriate crops and crop systems for the area. Investigations should include such schemes as the Hardy proposal for cacao. The agricultural possibilities of the Northwest District are too little known to justify allocating any important share of credits or personnel to its exploitation in the near future. The red lateritic clay soils are suitable for citrus, probably for cacao, and perhaps for Robusta coffee; the last two should be investigated experimentally. The pegasse soils may offer scope for Liberica coffee, ground provisions and rice. It is recommended that the Hosororo Station be reorganized and equipped to make adequate studies of the technical requirements for successful exploitation of these soils. Extension of Coastal Agriculture. In the absence of knowledge of other regions, the immediate prospects for extending the colony's cultivated area are virtually limited to the coastal zone. Here the land now in use is for the most part confined to the narrow strip of polders along the shoreline and the mouths of the large rivers, and to some empoldered areas which lie abandoned. In the case of this formerly reelaimed land the maintenance cost for drainage and 190 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT irrigation is high, but the polders themselves are by now a part of the land structure and are no longer a capital charge. Coastal land available for expansion is not as extensive as the map would suggest. There are large areas of deep pegasse which cannot be used. In any areas chosen, moreover, it is essential that the productive capacity justify the investment needed. It is necessary to select comparatively fertile lands, capable of being worked intensively, and to avoid too expensive reclamation. Areas meeting these requirements are to be found (a) behind the present polders and (b) on the banks and inner banks of the main rivers, insofar as tidal flow is sufficient to insure satisfactory drainage. Reclamation costs for the areas under (a) are estimated at $120-$150 per acre, with subsequent maintenance at $10-$15 per acre. For the areas under (b) the reclamation cost is lower, but the saving is partially offset by the high cost of clearing the dense brush covering the best-drained regions; the resultant figure is about $100-$120 per acre. Existing schemes for coastal land reclamation must fall short of providing the amount of new land needed without some parallel development by private enterprise. Some can be expected in rice growing in the Mahaica-Abary area, and elsewhere with various crops on the river banks. Since the colony must count on private initiative to help achieve the land development target, encouragement should be given to it wherever possible. Where, as in the Boerasirie Scheme, initial reclamation involves large governmental investment, adequate returns and effective use require uniform discipline in the use of land and water. It will be necessary to impose substantial regulatory measures. This will be true whether subsequent development is carried out by public or private energies. It is essential that the colony draw from these schemes the maximum benefit in productivity as well as in absorption of new farmers. In general, the government must assume that the initial reclamation of the land is but the first phase of its participation. It will be wise to foresee a series of actions involving: 1. Preparation of land for farming, mainly by clearing, and provision of rural housing, 2. Careful selection of new farmers, 191 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

3. Furnishing them with credit for initial equipment and other necessities, 4. Defining a program for the best use of land and water, and providing guidance to the settlers. Detailed procedure in these matters must of course be adapted to each particular settlement project, with frequent compromise between the desirable and the possible. It is recommended that studies of this problem be undertaken in the present settlements of Cane Grove, Vergenoegen and Anna Regina, along the lines of the investigations conducted by the Imperial College of Tropical Agriculture of Trini- dad. These studies, and ultimately the direction of land settlement itself, should be in the hands of a specialized central authority. For this the mission proposes a Settlement Division in the Department of Agricul- ture. At present both this Department and the Department of Local Government undertake land settlement, inevitably with some confu- sion. In anticipation of its larger work to come, this Division should start a pilot settlement project of about 5,000 acres. The best site for such a project would, in the opinion of the mission, be south of Lookout along the Essequibo in West Demerara, conveniently close to the Georgetown market. Here, on farms of appropriate size, a mixed peasant farming system should be developed, with a prominent place in the frontlands for dairy cows, fruit, cacao and coconut trees. The capital outlay for such a scheme might be about $1,250,000 for roads, canals, land clearing, layout of the farm lots and nurseries, and the investment would probably be recoverable over a 20 to 30 year period. Farmers should be selected with regard to their demonstrated ability; it is recommended that they be provided with at least the capital needed for their livestock, fencing and farm implements. Additional short- and long-term credit, possibly up to $50-$100 per acre, should be provided by the Agricultural Section of the proposed Credit Corporation. Although the land resources are such that the main policy should be to establish rather small farms, some scope should be given to the development of larger rice farms of about 100 acres to enable people with more capital to gain a higher level of living. The best location for this size of farm is likely to be in the Corentyne backlands where 192 flG2

i ---- I~~~~~~~_Sidr-llnrs (dminoge)

Ia------E

G MEddlewlAk OTOrict A)

GENERAL LAYOUT OF A POLDER

SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

there are possibilities for rice growing and some ranching. To test its economic feasibility, a pilot scheme for settlement of 1,000 acres in 100-acre farms is recommended. For this scheme, credit is needed for the capital outlay, which will amount to about $100 per acre or $100,- 000 in all. The new rice mill planned by the RDC for this region will be of assistance in development of this type of farm.

III. Drainage and Irrigation

A. GOVERNING CONDITIONS The concentration of new land development on the coastal plain raises major drainage and irrigation problems. The dominant factors in this connection are the mechanical properties of the soil and the occurrence of rainfall, both of which have been described in the intro- ductory pages of Chapter 12. Certain features need only to be reviewed here. A mathematical treatment of their relationship to crop requirements will be found in Appendices I and II. The historical development of the colony has given rise to an unusual system of drainage and irrigation. The 'land is laid out in a series of parallel strips, running inland at right angles from the coast or river frontage (see Figures 1 and 2). Each of these strips has its own irrigation (middle walk) channel and its own drainage (sideline) channels. Virtually the whole area is empoldered, with the front protected by dykes against the sea and the back by the so-called "back dams" against floods from inland. The width of each polder was originally 100 Dutch rods, or about 1,200 feet; now, however, there are many polders of greater width. The original length was generally 750 Dutch rods or about 3,000 yards. This part is called the "first depth," and is still held under freehold tenure. In later years land was leased at the back to a "second depth." Where no sea defenses exist (for example between the Abary and the Berbice) the land along the coast may be partly unused because of salt intrusion. The polders drain their excess water through "kokers." In the old days each sideline had its own koker-a more or less primitive culvert closed with a wooden gate. In recent years many of these kokers have been rebuilt as fairly modern sluices. Figures 3 and 4 show the old and the new forms. River Characteristics. Within a coastal belt about 120 miles in length, four important rivers-the Corentyne, the Berbice, the Deme- 193 THE ECONOMIC DEVELOPMENT OF BRITISH GUIA1NA rara and the Essequibo-drain the greater part of the interior. The remaining 150 miles of coastline have rivers of lesser importance. Between the Berbice and the Demerara, three smaller rivers flow into the sea: the Abary, the Mahaicony, and the Mahaica. These rivers originate in the sandy hills, as does the Canje river which drains the area between the Berbice and the Corentyne. The four big rivers are navigable for ocean-going craft of limited draft for at least 50 to 60 miles; the Berbice is navigable for about 100 miles. Potentially, therefore, agricultural production from settlements along the rivers of the coastal plain will always have adequate transportation. The stream flow varies widely with the season. In June and July, the rivers are in flood; in March and April, the flow diminishes rapidly, at least in the dry years. There are not much data available on run-off, since its estimation in a tidal river is difficult. Stream measurements, made for hydroelectric purposes in the large Essequibo and its tributaries, indicate that run-off in the dry years is only a small percentage of normal river flow. Run-off in the smaller rivers may dwindle to almost nothing. Drainage in the coastal area is normally effected by making use of tidal differences. At Georgetown, which lies almost on the seashore, the difference between high and low tide varies from 7.75 feet for the spring range to 3.5 feet for the neaps range. For the first 40-50 miles upstream along the big rivers, there is only a slight difference from the tidal range on the seashore. For the period of low run-off, this is normal in such a flat country; an unusual feature, however, is that in the flood period the difference is also small. The tidal data at Mackenzie (66 miles from the coast) present the following picture: Dry Period Wet Period H.W. L.W. M.T.L. H.W. L.W. M.T.L. Av. Spring Tide ...... 22.47 16.36 19.41 23.17 16.60 19.88 Av. Neaps Tide ...... 21.55 16.57 19.06 22.31 16.88 19.59 H.W. Highest Water Level L.W. Lowest Water Level M.T.L. = Mean Tidewater Level Year 1947-Dry period: 28th March-25th April Wet period: June

194 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

It will be seen that the mean tidewater level for the whole tidal range, from spring to neaps, varies less than 0.5 feet from the wet to the dry season, a negligible difference. It is evident that gravity drainage of the land along the important rivers, at least in the coastal plain, can be effectively carried out. On the smaller rivers (the Canje, the Abary, the Mahaicony and the Mahaica) tidal influences are totally different. Presumably because these rivers have to break through sandy reefs near the coast, a kind of bottleneck is formed a few miles from the seashore, which prevents entrance of the tidal stream. Tidal differences on these rivers therefore are far smaller than on the big rivers; they are, in fact, of little value from the point of view of gravity drainage. During the wet season, the land along these rivers is almost completely flooded. Figure 1, an aerial view of the coast between the Mahaica and the Abary, shows this clearly. The rivers reach the estuaries remarkably free from silt. The water is dark in color and acid, and a chemical analysis gives no encouragement to its use for irrigation purposes. The use of river water for irrigation, moreover, necessitates pumping and has been practiced by only a few of the sugar estates. The new irrigation works for the Corentyne coast, to be described later, are also based on pumped water. Normally the sources of irrigation water are the "conservancies"'- the areas behind the back dams. In some cases, where the water is to be used for both irrigation and canal navigation, these storage areas have been improved and managed by a special board; a typical example is the East Demerara Conservancy. For the most part, however, the conservancies are simply swamps from which the farmer tries to get some water in dry periods. Unfortunately these swamps are susceptible to heavy evaporation losses in dry weather, and there is always a prospect that water will not be available when it is most needed. Moreover, for topographical reasons, only a part of the crop can be irrigated from the conservancies. It was estimated in 1948 that 55%o of the rice growing area depended entirely upon natural rainfall and the percentage probably still holds true today. Rainfall and Evaporation. Uncertain distribution of rainfall in the period from November until April is one of the most difficult problems facing the British Guiana farmer. Precipitation in these 195 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

months varies widely from year to year. There is only one period (May to the middle of August) in which there is good assurance of heavy rainfall, and one period (September - October) which has dry weather in 85 years out of 100. Temperature and humidity offer a far more consistent picture. The most significant feature of the temperature on the coast is its lack of daily and annual variation. The mean monthly temperature in the shade varies from 790 to 820 F.; the daily range is rarely as great as 14°. Relative humidity is high; it ranges from an occasional 1007o in the mornings to as low as 51% in the afternoons, but the mean relative humidity varies only from 88%o in the morning to 75% in the afternoon. Consequently normal evaporation is fairly low for a tropical country. The evaporation at ground level from a free water surface six feet square, for 1950, is given as 51.05 inches, which is 47.2%o of the total rainfall. Average annual evaporation over 35 years (1916- 1950) is recorded as 57.04 inches (0.154 inches or 4 mm. per day). But to yield these averages the evaporation in the dry months of the drier years must be considerably higher, a factor of importance in water storage problems. Soil. The soil in the coastal belt is very uniform in character. Over the whole area a bluish gray clay is found with between 5%To and 6% of humus in the top layer (0-6 inches). It varies but little from the seashore to the hinterland. Only in swamps is it covered with a more or less thick layer of decayed organic material. Mechanical analysis of the soil shows an average of 60%o clay (under 2 microns), 30% silt (2-20 microns), 8-9% organic material and a small percentage of sand. This means that its percolation capacity is zero. Only in the top layer, where humus and decayed organic material cause a looser structure, is there a possibility of aeration and percolation. A mineral analysis of the clay was not available to the mission. Data on comparable clay from French Guiana and Surinam indicate that the greater part of the minerals consists of illite. This is in keeping with its observed behavior. When saturated, this clay is of low consistency. Slopes slough easily, especially where waves are produced by wind or motor craft, and the river bed behind sluice outlets is very susceptible to scouring. Parallel with the seashore, narrow sand reefs are found. These 196 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT reefs are interesting agriculturally, because they offer possibilities for crops other than rice and sugar. From the point of view of drainage and irrigation, however, they are a nuisance. It is even more difficult to maintain the channels here than in the clay, and these reefs prevent the use of irrigation water on some lands which need it badly because of their salt content. Far more important, although very little utilized at present, are the soils on the river banks. These riverain soils (and the pegasse clay back of them) are the only potential agricultural lands that will remain in the region when, within the next few years, the whole frontland from Springlands on the Corentyne to Parika on the Essequibo will be under cultivation. The riverbank soils have a larger silt content than the clay (40% under 2 microns, 50% 2-20 microns) and therefore offer better possibilities for percolation and aeration. The soils are deeper and afford reasonably good agricultural prospects. An unknown factor is the drainage of the pegasse clay back of the riverbanks. Local surveys indicate that this pegasse is fairly deep- perhaps as much as five feet. If the terrain is horizontal, this should point to deeply scoured ancient river beds, which cannot be drained by gravity and would be a considerable hindrance to agricultural development. Further investigation of the phenomenon will be needed.

B. SPECIFIC SCHEMES

The Boerasirie Scheme. Estates on the West Coast of Demerara depend for irrigation water on the Boerasirie Conservancy, which has an area of approximately 94 square miles. This reservoir has proved inadequate to insure the estates their full requirement of water at all times. In 1937 no water was available from the conservancy for a period of 42 days. In the same area there is another small conservancy-the Canal Polder Conservancy-designed to supply water to the so-called Canals Polder Area. This area, a stretch of land on the left bank of the Demerara river, provides Georgetown with fruits and such ground provisions as sweet potatoes and cassava. This conservancy has also proved inadequate. Some years ago an effort was made to improve the situation by what was known as the Bonasika Scheme. Its two main features were 197 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

the construction of a barrage in the Bonasika river and a high-level canal. Unfortunately, after the headworks and the canal were completed, abnormally heavy rainfall in 1948 led to unexpected erosion and scouring of the headworks. Moreover, it was later found that the dry season streamflow of the Bonasika is relatively small. It was therefore thought wiser to seek another solution altogether, rather than to invest further sums on rehabilitation of the barrage. The present Boerasirie project, on which construction is about to start, was suggested by Mr. F. H. Hutchinson, who wvas consulting engineer for the colony from 1949 to 1952. Mr. Hutchinson proposed the construction of a new conservancy by strengthening the existing two dams, and by extending these dams parallel to the Essequibo and Demerara rivers for 11 and 1.5 miles respectively. The larger conservancy thus formed, with a catchment area of 156 square miles, is expected to meet every reasonable need for water. These new dams (and additional drainage works) will mnake possible the cultivation of land to a depth of three to five miles along the two rivers, and in this way put to beneficial use a gross area of about 40,000 acres which is now completely undeveloped. Analysis of the full area shows the following acreage distribution:

Gross Area Less 15% for Net Area Cultivated Land (Acres) Canals, etc. (Acres) To be drained and irrigated ...... 75,000 (11,250) 63,750 Urndeveloped Land To be drained and irrigated ...... 32,090 (4,814) 27,276 To be drained only ...... 7,700 (1,155) 6,545 Area with deep pegasse not to be used ...... (14,973) - -

Total ...... 129,763 97,571

The cost of the project may be higher than now estimated. This applies especially to the 11-mile back dam from Warimia to Uitvlugt, since building dams in a heavily wooded swamp is expensive. Allow- ance for this has been made by the government in raising the original cost estimate from $6,721,889 to $7,612,174-the latter figure includ- 198 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT ing the cost of an extra sluice. If the project can be carried out in a really dry season (which occurs once every five or six years) there is a reasonable chance that it can be accomplished for this amount. This corresponds approximately to the estimated local expenditure of $6,556,000 for the next five years, supplemented by an existing MSA grant of U.S. $621,000 (B.W.I. $1,055,700). Technically the project is sound, but it might be objected that the freeboard of two feet is too small. The conservancy will consist mostly of open water on which, as can be seen on the Essequibo river, fairly heavy wave action is to be expected. The recent addition of an extra sluice between Lookout and Parika will be a great help. With this and the sluices at Warimia and Kamuni, it should be possible to keep the full supply level at, say, one foot below the projected 61.3 G.D., thus bringing the freeboard up to three feet. This would still assure an ample water supply to existing crops in the near future. Some economic features of this scheme may be much less favorable than originally thought. When. the project started, there were very optimistic expectations about the extension of the sugar cane area. It now appears that even the more moderate ].952 estimate of 6,000 additional acres of sugar will prove too optimistic. Extension of the area used for ground provisions is possible, but it will be many years before the calculated gross return of $2,800,000 from ground provisions will be realized. Thus the main advantage of the project actually lies in the production of more rice. The estimate of 8,000 acres of new rice land, and 9,000 acres of increased development in areas now partly cultivated, is certainly not too optimistic. This will mean, however, a gross return of only $2.5 million a year (or, with ground provisions and dairy cattle, say $3.5 million) instead of the $8.5 million estimated in 1952. The Corentyne Scheme. The Corentyne Scheme, now under consideration, proposes drainage and irrigation in Blocks I and II along the Corentyne coast. These blocks lie between the sugar estate of Port Mourant and Block III, for which the principal irrigation and drainage works were completed in 1952. They cover the last stretch of frontland clay in this area where land is available for settlement. Drainage and irrigation in this region do not at present form a completed and integrated system, even in the so-called first depth. Irrigation water is drawn from the flooded savannah behind the 199 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA estates. The drainage channels are in varying states of disrepair, but in the main they are derelict. With one or two exceptions, the estates are split up among small proprietors. In a few of these areas a Village Authority has been given the responsibility of maintaining the drainage and irrigation works of the estates in its zone. The proposed irrigation and drainage schemes in Blocks I and II depend primarily on the Torani Canal for their water supply in dry weather. It has been estimated that the total water available for Blocks I and II is 407 cusecs. Taking the demand for rice growing as 1,000 cubic feet per day per acre, this would allow for 35,164 acres. The Torani Canal has been the subject of discussion for several years. Recently technical consultants from London have examined it, and have estimated the average supply per 24 hours in a dry weather period as 55 million cubic feet for an average tide, 100 million cubic feet for an average spring tide, and 46 million cubic feet for an average neap tide. Their conclusion is that the average supply over the dry weather period will approximate the mean of the spring and neap tides rather than the average tide. Accordingly, they estimate the delivery from the Torani Canal at 73 million cubic feet per day or 845 cusecs. These consultants have advised the installation of control gates at both ends of the canal inasmuch as, during several hours, the tidal difference between the Berbice river and the Canje river is negative and the water flows in reverse. Moreover, they point out that by installing control gates a much more uniform supply can be made available to the pumps. The control gates are now under construction. It is necessary to point out, however, that stream flow in a canal varies with hydraulic radius and that hydraulic radius varies with depth. These are not linear functions. Strictly, the only correct technical procedure is to base computations on the tideline, which runs over 14 days from spring to neaps and back to spring. The best way to do this is to make a day-to-day computation. When there is need for simplification, however, the customary solution is to base the computation on the average tide. Accordingly, the mission believes that the delivery of the Torani Canal, as it was originally planned, would have been less than 845 cusecs. On the other hand, the canal now has a cross-section consid- 200 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT erably larger than was originally planned. Moreover, for the first 1,000 yards it is connected with a small swamp. The storage capacity of the canal is at least 20%o greater than the figure which the consultants used in their computations. For this reason, it is practically certain that, when the gates are operated in the right way, the canal can supply the desired stream flow of about 850 cusecs. The sand reefs running parallel to the coast in this region have already been mentioned. These reefs are unsuitable for rice growing. Although drainage channels intersect these reefs, it is considered uneconomic to bring irrigation water through them. Thus, of 17,000 acres now in use, provision has already been made for water to irri- gate 8,000 acres. Subtracting this from the estimated total of some 35,000 acres for which water will be available, the project therefore provides for irrigation of new land to the extent of about 27,000 acres. This is to be accomplished by a scheme which includes (1) a pumping station on the right bank of the Canje river, (2) a feeder canal and a distribution canal, (3) three drainage channels and a facade trench, and (4) the necessary internal works. Estimated costs are $3,048,969 for the main works and $1,430,312 for the internal works, or a total of $4,479,281. Some additional expenditures may be required for roads. These works are fully approved by the mission. The cost-$128 per acre-is reasonable in comparison with costs elsewhere. Along with the construction work, however, an organized development and settlement scheme will be essential if there is to be a real gain from the investment. The Tapakuma Project. This project covers irrigation and drainage in the Pomeroon area. Its principal features are (1) to improve and enlarge the Tapakuma water conservancy by building a new dam, and (2) to improve the drainage facilities. The project has been temporarily abandoned because of the unsatisfactory operation of much of the land in this area. Absentee landlords have failed to improve, or even to maintain, their drainage channels. Until land tenure here can be reviewed and thorough drainage of the farm lands guaranteed, the mission considers it inadvisable to spend heavy sums on irrigation. Rainfall here is so abundant, furthermore, that the autumn rice crop can be grown without irrigation water. 201 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The Mahaica Project. Among the Hutchinson projects is one for the improvement of drainage and irrigation in the area of the Mahaica river. This calls for a dam across the river, to join the higher land on both sides and thus form a shallow reservoir. From this dam two canals would provide the rice fields on both sides of the river with irrigation water. In the frontal zone the drainage conditions, which are fairly bad in this part of the plain, would be improved by a drainage channel parallel to the road. Unlike the Tapakuma project, the Mahaica project has not yet been given serious study. Without extensive surveys in the swamps on both sides of the river, neither the location nor even the possibility of the proposed dam can be considered. It is, however, of the utmost importance that planning start here. The plains between the Mahaica, the Mahaicony and the Abary, with the exception of the Mahaicony Rice Scheme, are flooded every year. Yet along the banks of these rivers is to be found the greatest area for the extension of rice fields, and, in fact, the only area where rice land has been developed outside the old estates. The mission believes that a thorough survey and investigation of the inherent problems should be undertaken as soon as possible. Presumably the Mahaica, Mahaicony and Abary rivers all show a seriously diminished cross profile when they break through the sand reefs along the coast. For the Mahaica, the surveys for the Hutchin- son project have shown this clearly, and for the Abary the aerial photograph reproduced in Fig. 1 gives a similar indication. Dredg- ing offers no possibility along the Guiana coast, but during recent decades the development of hydraulic model research has made it possible to determine beforehand if there is a technical solution for such a problem. In many cases rectification, together with the building of groins and dredging, have made it possible to maintain deep navigation channels by tidal action. Such a channel would be a definite contribution to drainage here. The government should, therefore, consider having a model study made of one of these rivers in a hydraulic laboratory of recognized repute in this field.

C. CONDITIONS FOR FUTURE DEVELOPMENT Technical Problems. From an agricultural point of view, the riverain lands offer many advantages. Diversified agriculture is pos- 202 *OplM 01!W I 'OUoI sOI!Wt 'JOAI D41 bUOID pUDI '1O diqs o jo Aj!ADoj Aq abou!DCI OOZZ Idd

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TYPICAL IRRIGATION AND DRAINAGE LAYOUT FOR A RIVERAIN LAND SETTLEMENT SCHEME SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT sible there, the rivers afford cheap transport, and the banks provide sites for housing and roads. Certain difficulties, however, remain. Drainage is one of them. To be sure, the tidal difference amounts to five feet on the average, so that the river bank can always be drained. If the pegasse clay farther from the bank is approximately horizontal, drainage is not difficult even when the terrain lies one foot lower than the river bank. Drainage channels perpendicular to the river, a low dike along the river and a sluice with a self-closing gate, are the only items needed. There are, however, locations where fairly deep pegasse (up to five feet) is found, and it is possible that some of these are old flood beds of the river. Drainage of such stretches would be well-nigh impossible. An accurate survey of the elevation of the clay soil, as it appears when the pegasse has disappeared, is one of the first tasks required. Fig. 3 shows a rough hour-by-hour computation of the drainage of a stretch of land about four miles long. The elevation of the clay soil is taken as 12 inches below the riverbank and the elevation of the riverbank as six inches above average high tide. The tidal difference is five feet and the tidal curve is a rough approximation. With a canal 18 feet wide at the bottom, and 2.5 feet deep below low tide level, a rainfall of 0.8 inches per 24 hours can be drained from a one- mile strip. (See also Appendix I.) The layout of the fields in this strip is of great importance for successful operation. The rice fields must be laid out in long narrow strips parallel to the river. Here twenty acres is considered a desirable unit for rice farming, and half a mile is the maximum length acceptable. At this length a farm lot would be 330 feet in width or, with a 20-foot ditch, 350 feet. Irrigation water can be brought in from the back at both sides of the one-mile strip, whether from a conservancy or from a canal. On the river front the layout is different. To obtain as much benefit as possible from the diversified farming which the riverbank soil permits, it is desirable that many farmers take part in it. The acreage of such farms being somewhat smaller, there can be many narrow strips perpendicular to the river, with drainage into a channel back of the river dam and, eventually, back of the road. Each farm is half a mile long and covers 15 acres. This gives a width of 246 feet, plus 18 feet for ditches, or 264 feet. Thus on the 203 THE ECONOMIC bEVELOPMENT OF BRITISH GUIANA mile of river length there can be 20 farms of 15 acres, each partly on riverbank soil and partly on clay. Behind these farms the rice farms would stretch on both sides of the drainage channel for another 3.5 miles. In this way a strip of land slightly larger than four square miles would provide 106 20-acre farms and 20 15-acre farms, giving a net total of 2,420 acres (see Fig. 4). To ensure feasibility of these arrangements in each area, a thorough survey of the land is first necessary. In addition, regular gauging of the tidal curve is essential. Another point deserving attention is that the riverbank lands are old estates which are under freehold tenure. To guarantee an organized settlement, this land should be bought by the government as soon as possible. Otherwise when development starts, there is always a chance that there will be excessive speculation in what is now practically worthless land. Location of Future Development. A study of the map of the coastal plain suggests at once that there are only two areas where development of this type can be realized. These lie between the Esse- quibo and the Demerara, and between the Berbice and the Corentyne. The first area will be developed, for the most part, by the new Boerasirie Scheme. Possibly in the future the scheme can be extended south of the Bonasika and south of Wales; these developments are a logical sequel to the work that is now being started. For the area between the Berbice and the Corentyne, however, there is no sequel apparent after completion of the current or contemplated work in Blocks I, II and III. It is expected that the Torani Canal will supply enough water for these blocks, but that is the limit of its capacity. The needs of the area between Skeldon and New Amster- dam will be covered, but any extension outside this area is impossible without modification of the canal level. Other new areas of this kind can be found only in the riverain lands of the Berbice south of Providence, and those of the Corentyne south of Crabwood Creek polder. As far as can be seen, the only possibility for irrigating this land satisfactorily is to build the shallow reservoir that Hutchinson proposed in his Modified Canje Project. There is, in fact, no real conflict between Hutchinson's project and the project now under construction. The present pumps are necessary in any event, because there is a pressing need for new land, and the building of long dikes in difficult land normally would have required 204 MAP 2

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PumnpingStotion v SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT several years of survey and investigation. When, in the future, the reservoir is made, the pumps can always be used elsewhere. There is an additional point to consider. The Modified Canje Project was defective as a final solution, insofar as it provided water only for a 44,000-acre spring crop-that is, for only 30%o of the area. In very dry years there would be insufficient water even for this purpose. On the other hand, the Hutchinson project provides a solution for the loss of the flood plain of the Canje river; such a loss could become a serious danger when all the acreage of the riverain land is empoldered. An obvious solution is to accept Hutchinson's project, but to improve on it by increasing the water supply. This can be done by bringing water in from the Berbice, thereby putting the Torani Canal to further good use. The full supply level of the reservoir as planned by Hutchinson is 57.0 G.D., while the maximum water level in the Torani Canal at spring tide is 55.0 G.D. The 12 miles of the canal will require a head of 12 inches to induce flow. By transferring the pumps to Torani it is easy to give a lift of three feet. The canal itself can stand a water level from two to three feet higher everywhere except in the first 800 yards, and there it is only necessary to build a dam in the swamp that is crossed. So far as can be determined without an accurate survey, this plan appears to be feasible. Its main details can be seen on the accom- panying map of the area (Map 2). The dam and the sluice in the Canje river are the same as those planned by Hutchinson, but his weirs and escape channels would be replaced by two more sluices draining in enlarged channels. Since, if necessary, the pumping station can fill the reservoir there will be no need to keep the reservoir at full supply level in periods with heavy rains, and this makes the operation far safer. The bulk of the flood water can thus be used for sluicing. The area that presumably can be developed along the rivers is sketched in. Roughly this area covers 80,000 acres along the Berbice, and 50,000 acres along the Corentyne. The land between the reservoir dam and the back dam of the four-mile stretch can be used for cattle. Needless to say, this suggestion is given here only as a basis for 205 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA further research. Surveys and investigations may prove that another solution offers better prospects; but it should be stressed that these should be undertaken without delay. In order to build in 1958, it is necessary to begin planning in 1954.

IV. Land Ownership and Tenure Ownership of freehold land in the colony began with the Dutch before 1803, and was later extended by the British government. Originally the Dutch rights affected 607 square miles and the British rights, from 1831 onward, 347 square miles. All this land is found in the coastal belt and along the banks of the lower reaches of. the main navigable rivers. A great part of the old Dutch freeholdings have been abandoned or neglected. The present owners are not, for the most part, the heirs of the original owners. Under the Crown Lands Resumption Ordinance (Chapter 172, as amended by the Crown Lands Amendment Ordinance of 1947) possession of any land which has been abandoned by the owner for eight years or more may be resumed by the crown. This right of the crown has never been used directly, but 206 square miles have been bought by the colony. Besides this "colony land," 90% of the area of the colony is the property of the crown and can be alienated by the government. The frontlands of the sugar estates to a depth of 1%4 miles in the County of Demerara and 21/2 miles in Berbice are private property, having been alienated originally by the Dutch, but most of the areas under cane cultivation are crown lands held under long-term licenses or leases. Many of the licenses are of an old form, issued for the term of Her Majesty's Pleasure at an annual rental of two stivers per acre.' Since 1931 no crown land has been granted as freeholdings. The policy now is that colony land and crown land can be granted only on lease for a maximum period of 99 years; in practice the leases are usually for 21 years.2 There are no land taxes except for cane cultivation (31 cents per acre per year), irrespective of whether the land is privately held. The mission believes that a number of details of 'An old Dutch coin equivalent to five Dutch cents; two stivers are now worth 3.2 cents B.W.I. 'Table 48. For more particulars see: Land tenure in the Caribbean. Caribbean Commission. Car. Ec. Review, Vol. II, No. 2,1950. 206 TABLE 48

RIGHTS TO CROWN LAND ISSUED BY THE DEPARTMENT OF LANDS AND MINES C Type Period Area Terms I. LEASES: 1 Agricultural 21 yrs. No limit-practically 1st 100 acres, 20 cents per ' 20 acres acre; next 400 acres, 15 cents per acre; and the bal- > ance 10 cents per acre Cattle grazing C, A. Coastlands 21 yrs.' Usually not exceeding 10 cents per acre 5,000 acres B. Intermediate 21-99 yrs.1 Min. 50 sq. mi. $15 per year and interior savannahs II. LICENSES: Agricultural During Her No limit Same as agricultural leases Majesty's Pleasure III. PERMISSIONS: Agricultural 10 years max. No limit Same as agricultural leases t Cattle grazing A. Coastlands 10 years max. No limit 5 cents per acre B. Savannahs 1 year renew- 50 sq. mi. $15 per year able annually

'With rights for renewal after termination. THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

the present policy will bear re-examination in the light of today's development aims. Attitude toward Neglected Freehold Land. A stronger policy on the disposition of neglected freehold land will be needed if agriculture is to continue to develop. In the irrigation and drainage works now under construction, considerable areas of such land are encom- passed. The new agricultural land to be made available by these works will soon be exhausted, and all the abandoned freehold land will be needed. Such basic resources should not be kept out of economic use. The mission therefore urges a stronger use of the governmental right to resume possession of these lands, as a means of bringing them into production. Imposition of a land tax may be a useful step, for under appreciable tax pressure the owners will have to go in for exploitation or sell the lands. To encourage private exploitation, credit on suitable terms should be provided. On the other hand, the irrigation and drainage charges on land brought within the Boerasirie and Corentyne schemes should be extended as soon as possible to this neglected area, and action should be taken to ensure that landowners pay their charges on time. Legislation may be needed to accomplish this. Granting of Freehold Titles. Land settlements to date have not been real settlements, but rather a form of organized tenancy. The farmers are tenants of the government, and the policy appears to be to keep them tenants. The mission feels that small-scale independent farming should be based as far as possible on personal ownership of the land. There is reason to believe that the small farmer will give greater care to his farm if he feels it is his own, and that he is building up the land for his sons. It is quite understandable that the government, viewing the waste of large areas of private agricultural land, has been reluctant to grant freehold titles. Yet if the settlement of new lands is to be properly organized, it seems wise to grant freehold titles to small farmers as soon as possible-that is, after a careful selection of the settlers and a few years of the necessary educational measures. The recommendations of Frampton and Lewis in this matter are worth study.3

'A. de K. Frampton. Land tenure in relation to the British West Indies. Car. Ec. Review, Vol. IV, Nos. 1-2. 1952. H. A. Lewis. Issues in land settlement policy. Car. Ec. Review, Nos. 1-2. 1951. 208 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

Tenancy on private land, apparently common among the rice growers, presents another problem. The difficulty here lies principally in the enforcement of existing regulations concerning security of tenure. Perhaps there is need for adjustment of the Rice Farmers' Ordinance of 1945, so that abuse of this law can be prosecuted. Cattle Grazing Licenses in the Interior. Ranchers in the Rupununi complain that the one-year licenses prevent them from putting more capital in the land. It is clear that such titles present no basis for long-term agricultural credit. On the other band, no sensible government will end these licenses abruptly. The problem is therefore largely psychological. Some relief might be felt if the government were to provide credit facilities for these ranchers on acceptable terms. However, it is not certain that an actual shortage of capital is the real trouble. Whether he uses his own or borrowed money, a rancher is likely to be reluctant to invest in land improvement or permanent structures which he feels he may have to abandon prematurely. Longer term leases* would probably remove the greatest psychological barrier to development in these cases.

V. Marketing of Agricultural Produce

British Guiana has, on the whole, a well organized marketing system for its principal agricultural products. A discussion of its main features may be useful. Sugar. The sugar trade is well managed by the larger sugar estate agencies, two of which control respectively 70.5%o and 20.5% of the crop. The Colonial Sugar Preference and the long-term Common- wealth Sugar Agreement, signed in 1951, provide the industry with a good market at profitable prices. The "negotiated price" of the Commonwealth Sugar Agreement is to be revised each year in accordance with a formula designed to reflect the changes since the 1949-50 crop year in: (a) the level of wages and salaries in the industry; (b) the price of supplies (bags, fertilizers, etc.); and (c) other elements of cost such as transportation, port and ancillary services. No account is taken of by-products. The 1950 price (£ 30.10.0 per ton) was accepted as a reasonable base 209 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA for the indexes in the formula. The 1952 price derived from the formula is £ 38.10.0 ($184.80) per ton, sellers paying agreed rates of freight and insurance at prewar levels. An additional Colonial Sugar Preference rate is paid on one third of the exports, and amounts to $4.80 per ton of exported sugar. The "negotiated price" is paid for a fixed quota; however, the quota can be enlarged for one territory if other territories do not export the full amount of their allocated quotas. If British Guiana's favorable commonwealth position has any drawback, it is the size of its present quota, and it would be in the interest of the colony if its allocated quota were enlarged to about 250,000 tons. Thus protected, the potential output of the industry with its present equipment and proposed investment plans would be more secure during the next seven years. Rice. The marketing of rice, the second largest agricultural crop, is also well organized and efficiently run by the Rice Marketing Board (RMB). On the basis of the Emergency Powers Act of' 1939, under which the Defense Rice Control Regulations were enacted, the Rice Marketing Board received the status of single buyer and single seller. All milled rice, except that needed for direct consumption, has to be sold to the RMB. This arrangement enables the government to control the price paid to the producer as well as that charged to the consumer. Furthermore, it has made it possible to improve the quality of export rice, and to negotiate prices and quantities with the British West Indies governments under preferential custom duties. The Georgetown premises of the RMB, recently rebuilt, are now turning out attractively packaged, high quality rice which enjoys a good sale. In Trinidad, for example, the mission learned that the supply of this rice was still far too small to meet the demand. Although the prospects for the world rice trade are good, the colony cannot expect to realize maximum benefit from its position unless steps are taken to improve the low average quality of British Guiana rice. For this purpose better drying, storage, milling and grading facilities are needed. The Rice Development Corporation (RDC) will be able to take care of the first three, and the governmental mills and the RMB are looking after grading. 210 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

Meat. Beef marketing for the cities of New Amsterdam and Georgetown is in the hands of the Livestock Control Organization. The difficulty in establishing a regular supply to Georgetown arises from the poor condition of the cattle trail from Rupununi, the very low capacity of the abattoir at Lethem in the Rupununi district, the lack of cold storage facilities at Lethem and Georgetown, and the inadequate municipal abattoir at Georgetown. All' these problems will require investigation and action. Funds for the abattoir and cold storage at Lethem have already been allocated. Cold storage .bins at Georgetown are under construction. There remains the question of the improvement of -the Georgetown abattoir, which affects pork as well as beef production. The mission feels that funds should be provided for this purpose, and that the government should discuss the matter with the municipality. This abattoir is a pivotal part -of the general program, and accordingly the mission recommends an allocation of $100,000 for its improvement. Milk. The marketing of milk in Georgetown is handled by the governmental Milk Control Organization. Its principal problems, discussed in Chapter .13, will be alleviated when the organization acquires a pasteurization plant and cooled trucks for the collection of milk. Produce. The Government Produce Depots and the associated Governmental Processing Factory take care of all agricultural products except rice, sugar, copra and coconut oil. Agricultural products are bought in the main producing areas at minimum prices. The organization operates nine purchasing centers, sells the purchased produce in its stores at Georgetown, and absorbs the surplus in the processing factory 'in Georgetown. 'In 1952 purchases amounted to $1.1 million, with sales at $1.2 million. After covering expenses the operations show a deficit of about $50,000 per year, which is provided in the budget of the Department of Agriculture. This organization was founded in 1940 as an emergency measure. It has done well in the emergency years and is doing a good job now. Nevertheless, there are some dangers in -this 'field of operations. Assuring the farmer an artificial "fair" price, even when he is flooding the market, keeps the prices of such produce (especially yams, 211 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA cassava, plantains and corn) so high that farmers will not feed surplus quantities to livestock. One effect, for example, is that the policy discourages pig raising. Since, from the standpoint of supply, there is now no need to support the production of ground provisions, one of the reasons for this activity of the Government Produce Depots has disappeared. There is a much greater need to encourage production of cheaper feed for cattle, pigs and poultry. The mission believes that a corresponding change of policy is desirable. Price Controls. Government price controls, which are based on Regulation 44 of the 1939 Defense Regulations and are administered by the Controller of Supplies and Prices, have been successively lifted until now only a few items of agricultural produce are controlled. The rice price is established by the RMB on the basis of export prices, and the maximum retail prices are controlled to keep retail profits within limits. The price of sugar for internal consumption, fixed by negotiations between the price controller and the producers, is far below the present export prices. Both the price and supply of coconut oil are controlled. Here the Controller of Supplies and Prices is also engaging in marketing; sales of domestic coconut oil and all imported edible oils are channeled through this organization, which fixes the homemade oil price at $2.36 per gallon and imported oil at $2.80 (wholesale price $2.60). Retail prices for beef are also controlled, the Livestock Control Organization paying fixed prices for live and slaughtered cattle. The mission has recommended (Chapter 13) that coconut oil price control be lifted, and that higher prices be paid for cattle to encourage production. There are additional controls on supplies, based on the need for currency control. Of interest from an agricultural viewpoint are the controls on the import of flour, salted fish, pickled beef, condensed milk and lard. In an attempt to keep the cost of living within limits, these foodstuffs are made available to the consumer at subsidized prices. This policy, upon study, seems less advantageous than might appear on first view. In addition to the cost, which in 1951 amounted to $905,825 on these items alone, the policy discourages the purchase of home-produced fish, milk and beef, thus lowering the market for domestic foodstuffs. Considering, furthermore, that the cost of living 212 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT is taken into account in determining the export price for sugar, there seems to be no need for subsidies on imported foods.

VI. Agricultural Credit

A. PRESENT OPERATIONS Cooperative Credit Banks. Apart from loans, often at high rates, made by private landlords and mill owners, agricultural credit in British Guiana is mainly the function of the so-called Cooperative Credit Banks. They are 26 in number, and their field of operation covers all types of small credits in the colony.4 Each applicant for credit from one of these banks has to be a member, and to buy at least one share at $1. Shareholders' money in 1952, from 26,487 members, amounted to $127,811. For the major portion of their funds the banks borrow money from the government at 3% and lend it to their members at 6%o. These banks are not true cooperatives. The whole group is controlled by a board under a governor, and each bank's board is pre- sided over by a supervisor. The supervising organization is incorporated as a Division of the Department of Agriculture. Its overhead costs, including a head office in Georgetown and five field supervisors, are paid out of the government budget. These costs- almost $40,000 per year-are not charged to the expenditure of the banks. Types of Loans. Loans of the Cooperative Credit Banks fall into three categories: Type I, general purpose loans; Type Ila, rice reaping loans; and Type IIb, food production loans. Ordinary general purpose loans (Type I) are normally given for a period of two years, and never for more than 10 years. The maximum amount in practice is $480, and immovable property is required as security. During 1952, new loans in this category totalled $317,395, of which 75% were between $130 and $240. Nonagricultural loans make up a large percentage; 15%o, in fact, are given in the city of

'Sources: Annual reports of the Dept. of Agriculture, Caribbean Commission; Ramon Colon-Torres, Cooperatives in the Caribbean; Agricultural credit in the Carib- bean, Car. Ec. Review, Vol. IV-No. 1-2, 1952; Statistics from the Credit Division of the Dept. of Agriculture. 213 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Georgetown. The purposes for which these loans were made in 1952 were as follows:

Rice cultivation, milling and reaping ...... 8.0% Other agricultural purposes ...... 7.4 % Livestock (mainly purchasing) ...... 14.5% House building ...... 50.8% Others ...... 19.3% At the end of 1952 the balance outstanding on all such loans was $729,391, of which 35%o was from loans made prior to 1951. The discipline on repayments is low. About 88% of the amounts owing for 1942-1950 are overdue, and this is equivalent to about a third of all loans for 1952. Although no money has had to be written off as yet, it appears that the boards of the individual banks are reluctant to take strong measures on overdue debtors. Type Ila rice reaping loans have been granted for many years, under the banks' regulations. Their character is self-explanatory. The total amount in this category is small; at the end of 1952 the balance of these was $53,511, of which $19,674 was overdue. In 1948 an ordinance was passed extending the powers of the Cooperative Credit Banks for the purpose of increasing food production generally. This established a mechanism for "food production" loans (Type Ilb) to farmers on special terms. The money is advanced by the government but administered by the banks. Such loans have been made available to rice farmers since 1950, although never for machinery purchases. Food production loans are of two kinds. Those secured by real property may be made up to $24 per acre, with a maximum of $480. Crop lien loans are limited to $14 per acre for ready land and $17 per acre for land which has to be cleared, with a maximum of $240 per debtor. The latter are given in two advances: $8 or $11 per acre for preparation and planting, and $6 per acre for reaping. It would appear that neither the borrowers nor the banks have felt sufficient responsibility for repayment of food production loans. At the end of 1952 their balance outstanding was $378,129, including new 1952 loans of $102,817 and $204,100 overdue. In all, the money borrowed from public funds for the cooperative credit operations amounted to more than $1 million at the end of 1952. 214 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

For 1953 $100,000 has already been allocated for Type I loans and $200,000 for Type II. This provides a working capital of $1.3 million from government funds, apart from what is invested in agricultural machinery. Other Credit. The Rice Marketing Board in 1946 considered it desirable to increase funds for loans to finance equipment for mechanized rice cultivation. A total advance of one million dollars was made on a hire-purchase basis. The program appears to have been a success in one respect, for many farmers were eager to obtain the machinery. But in 1949 the Board decided to discontinue the scheme, and its annual report for 1950 stated: "It is regrettable that it has to be recorded that many of the producers who have taken advantage of the facilities offered under this Scheme have not been alive to their responsibilities, in that install- ments due on equipment have not been met promptly. In view of this, it has been necessary to provide a reserve against the possible loss on the resale of equipment which may have to be repossessed by the Board." Aside from this program and the activities of the Cooperative Credit Banks, the Secondary and Minor Industries Board up to 1946 made loans to fishermen from funds allocated by the government. Such loans were originally made on the security of fishing and other equipment. This security proved to be inadequate, and the loans were discontinued in 1946. A summary at the end of 1952 showed 17 of these loans granted to a total amount of $17,857, with $6,707 repaid and $10,879 written off as bad debts. Finally, other credits are advanced for the land settlement schemes, and through the machinery pool of the Mahaicony-Abary scheme, for tillage and reaping. Statistics on these loans were not available to the mission.

B. PROPOSALS FOR THE FUTURE

In the opinion of the mission, present organizational facilities are adequate for small, short-term agricultural credits. Moreover, with some adjustments in operating methods, they can do the work efficiently without much further increase in working capital. 215 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

TABLE 49

ESTIMATED AMOUNT OF ADDITIONAL LoANS TO BE MADE FOR AGRICULTURAL PURPOSES (in thousands of dollars)

1954 1955 1956 1957 1958 Total 1. Credit' ...... 500 500 500 500 500 2,500 Repayments ...... - 250 250 500. 500 1,500

Net ...... 500 250 250 - - 1,000 2. Credit ...... 50 200 250 50 - 550 Repayments ...... - 5 10 60 75 150

Net ...... 50 195 240 -10 -75 400

3. Credit ...... 50 50 50 - - 150 Repayments ...... - 5 10 15 20 50

Net ...... 50 45 40 -15 -20 100 4. Credit ...... 10 10 10 - - 30 Repayments ...... - 2 3 5 5 15

Net ...... 10 8 7 -5 -5 15

5. Credit2 ...... 100 100 50 - - 250 Repayments ...... - - 10 20 20 50

Net ...... 100 100 40 -20 -20 200 3 6. Credit ...... - - - 260 260 520 Repayments ------

Net ...... - - - 260 260 520 7. Credit ...... 20 20 20 20 20 100 Repayments ...... - 5 10 15 20 50

Net ...... 20 15 10 5 - 50

'Estimated indebtedness $25 per acre, with 50% of the area under rice indebted. ' To provide for paddocks on 600 sq. miles (10% of the total area). 'To provide for 6 ranches of 100 sq. miles each. 216 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

1954 1955 1956 1957 1958 Total

8. Credit ...... 100 - - - - 100 Repayments ...... - 10 10 10 10 40

Net ...... 100 -10 -10 -10 -10 60

Total Credit ...... 830 880 880 830 780 4,200 Repayments ...... - 277 303 625 650 1,855

Net4 ...... 830 603 577 205 130 2,345 'Excluding the capital of $1.3 million already advanced.

Present funds of more than $1 million advanced for agricultural credits should be enough to meet the ordinary short-term operating needs of 200,000 acres of cultivation. On the other hand, it is evident that there are larger needs for agricultural credit, for purposes not covered by the existing mechanism. Specifically, more funds are required to provide:

1. Relief of small farmers from chronic indebtedness to landowners or millers, 2. Long-term credits for newly settled farmers, 3. Long-term credits for rice millers, 4. Medium-term credit for copra driers, 5. Long-term credit for ranchers in the Rupununi, 6. Long-term credit for the establishment of ranches in the intermediate savannahs, 7. Medium-term credits for fishermen, 8. Long-term credits for the abattoir in Georgetown.

It is, of course, extremely difficult to determine the total amount of funds required for these purposes. The mission has made certain estimates for the next five years, based on considerations put forward in appropriate parts of this report, and these are offered in Table 49, where suggested credits are given for the purposes noted in the preceding paragraph. At the same time, a number of important changes in credit organization and policy will be necessary to deal effectively with these 217 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA problems. For a sound credit business, and in the best interests of the borrowers themselves, there must certainly be a firmer attitude toward overdue repayment. Further, although large loans should be given only in well defined development areas, the present maximum amounts allowed on the bulk of loans are too small for real agricultural development. Moreover, as now constituted, the banks cannot deal effectively with the loans which will be needed by public entities for irrigation and drainage schemes. It does not appear to be a sound practice to place the responsibility for credit operations upon the Director of Agriculture, whose functions are those of an agricultural adviser rather than a money lender. The mission recommends, instead, that a central agricultural bank be established as a department of the proposed British Guiana Credit Corporation. The present screen of "cooperatives" should be removed; the new bank, through its field offices, should then give all possible assistance to the formation of genuine cooperative banks. It will be necessary to establish a reserve fund, to enable the central agricultural bank to extend certain credits without customary security. The normal budget should include funds equivalent to the present subsidies of $40,000 for the Cooperative Credit Banks and the $50,000 deficit of the produce depots.

VII. The Department of Agriculture

General Organization. The Department of Agriculture has four main sections. The principal specialist staff, under the direction of a Chief Research Officer, is responsible for the basic technical activities undertaken in cooperation with the Extension Service. The Extension Service itself is staffed with six superintendents and 17 instructors, and is responsible for direct assistance to farmers. The Marketing Division, with one officer and four managers for the individual marketing schemes, is concerned with commercial operations. An Eco- nomic Division was created in 1933. In addition, the Department administers to the central organization of the Cooperative Credit Banks. A fisheries division was created in 1946. Fundamentally, the duties of the Department consist of (a) research on technical improvements to be made in agriculture, (b) 218 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

investigations in the rural economy of the colony, and (c) dissemina- tion 'of the results, with general technical assistance to farmers. To- ward these ends the Department maintains: 1. A rice station at Georgetown (Botanical Gardens), 2. Six substations for demonstration and supplying plants and seeds, under the administration of the extension services, 3. A few pure-bred and graded bulls stationed in stud and soiling units, for improving local cattle by upgrading; this will be progressively replaced by an artificial insemination service, 4. The Anna Regina Estates, an experimental resettlement area, and center for multiplication of seed, 5. Technical direction of the agricultural experimental station at the Mahaicony-Abary Rice 'Development Scheme. For its principal technical work the specialist staff is divided and staffed as follows: Economic botany: 1 officer, 1 assistant Chemistry: 1 officer, 2 assistants Veterinary and animal husbandry: 2 officers, 1 farm manager Fisheries: 2 officers Entomology: 1 officer Phytopathology: 1 officer Agricultural economics: 1 officer Cacao development: 1 officer Meteorological observer: 1 officer In 1952 the 'Department of Agriculture absorbed 4.8%o of the ordinary government budget. The estimate for 1953 is $894,000, or only 3.6%o of the budget. It should be noted, moreover, that over a third of the budget allocation is devoted to various agencies handling commercial operations, the Cooperative Credit Banks, schemes of the Marketing Division, nontechnical aspects of the Anna Regina Estates, and similar activities only indirectly related to the basic duties of the department. ASgricultural Research. The department does not yet have either the full staff or the network of 'experiment stations necessary for its essential contribution to the improvement of agricultural production. As one important measure, the mission supports the government plan to establish a major central agricultural station in the coastal 219 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA zone. Its site should permit simultaneous experimentation on the three main types of soil in the colony. The station should include an important rice section and trial plots of cacao, oil palm, banana, coffee and ramie, each on appropriate soils, for the study of behavior and comparative growing conditions. For the further diversification of crops in the colony, large collections of varieties of economic species should be established. A significant part of the research program should be concerned with balanced systems of intensive farming designed to permit sustained exploitation of the soil. To prepare for future agricultural expansion outside the coastal zone, the Hosororo station should be expanded in staff and equipment. Another experiment station should be set up for the Potaro-Middle Mazaruni regions, at a location to be determined on the basis of the soil survey proposed in Chapter 12. Additional funds should be allocated to the two stockraising stations in the Rupununi and intermediate savannahs. The latter of these, in the Ebini region, would be of greater value if placed on a commercial basis to permit a practical economic study of ranching in the intermediate savannah. Extension Service. At present there are only 17 instructors to provide extension service to 22,000 farmers. Such a small team cannot possibly effectively disseminate agricultural knowledge among so many. Improved service is especially needed in the populous districts of Demerara, Berbice and Essequibo. The mission recommends the selection and appointment of 10 more instructors as a first step toward building up an effective extension service. For these 10, an allocation of $25,000 is proposed for the capital cost of housing and equipment, plus $55,000 in annually recurrent expenditure. It is suggested that all new recruits for these posts be given technical and psychological training at the Eastern Caribbean Farm Institute in Trinidad. Marketing Division. The operations of the Division of Market- ing (Government Produce Department, Livestock Control Organiza- tion, Milk Control Organization, Processing Factories, etc.) are really outside the proper field of activities of the Department of Agriculture, but have been taken over by the Department in the absence of private initiative. Whether it would be desirable to give a different status to these commercial-type organizations is a question which needs further study by the government. 220 SPECIAL PROBLEMS IN AGRICULTURAL DEVELOPMENT

Economic Division. This division has just completed an extensive and valuable task in organizing and conducting the recent agricultural census of British Guiana, as part of the world agricultural census initiated by FAO. Its statistical data proved of great value to the-work of the mission. Further studies of the division should include those to be undertaken by a proposed research specialist in farm management. His work should embrace continuing study of existing land tenure, land settlements, farm planning, economic aspects of crops, practices and equipment, agricultural employment, volume of production, family consumption, and the economic balance sheet and income of farmers.

*221 CHAPTER 15

Five -Year Program in Agriculture

I. Priorities

In the preceding four chapters the mission has examined in some detail the present position of agriculture in British Guiana. In review, the outstanding facts which emerge are that: (1) there is insufficient land under cultivation; (2) at the rate of growth of population this deficiency will soon become more serious; (3) employment of the rural population is as urgent as an increase in agricultural production; (4) most new land for cultivation at this time must be found in the coastal belt, despite its special drainage and irrigation problems; (5) the agricultural prospects of the interior lands are as yet virtually unknown; and finally, (6) to reclaim additional coastal land requires careful long-range engineering planning years in advance of work on any major project. It is obvious that the last two conditions in particular call for effort now, so that the colony will arrive at the next five-year development cycle fully prepared for the necessary action. The detailed discussions have, of course, brought out numerous situations other than the need for land and employment. Problems of credit, marketing, diversification and improved cultivation practices are also important and are in many cases themselves the keys to new development. In whatever way these factors may be combined, it is clear that present government policy in agricultural expansion should emphasize not only production, but above all the profitable utilization of the colony's extensive human resources. The main effort, therefore, should lie in development of family-size farms and the building of a strong, economically independent farmers' community. All projects aiming at this target should receive highest priority. Where a choice must be made, then, projects may be classified broadly in the following manner: 222 FIVE-YEAR PROGRAM IN AGRICULTURE

1. First priority for: a. Reclamation of agricultural land and improvement of water control, b. Encouragement of peasant farming in organized settlements with supervised credit, c. Development of the extension service, d. Soil surveys to prepare for the future expansion of agriculture, e. Improvement of internal marketing, f. Diversification of cropping. 2. Second priority for such projects as: a. Improvement of drying and storage of paddy, b. Improvement of beef cattle production, c. Improvement of fish production, d. Improvement of copra production.

II. Supporting Policies For reasons which have been discussed in earlier chapters, the mission believes that a number of general policy changes will aid significantly in achieving these goals. Summarizing the most important of these, it is felt that the government should: 1. Review the regulations on land ownership, tenancy, leasing and selling of crown and colony land; exercise stronger action to take over abandoned property, and make it possible for farmers to purchase land from the government, 2. Organize a Settlement Division within the Department of Agri- culture,, 3. Incorporate all credit facilities for agriculture and fishery into one organization, as a division of the proposed Credit Corpora- tion and independent of the Department of Agriculture, in order to enable the Department to concentrate on research and settlement programs, 1. Extend credits to liberate the farmers from their economic ties to landlords, money lenders and rice mills, 5. Pass legislation to enforce proper maintenance of the drainage and irrigation canals inside declared irrigation and drainage areas, and in the meantime bring forward the technical means to carry out this work efficiently, 223 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

6. Reorganize the Rice Marketing Board into a Rice Marketing Corporation, permitting private farmers and millers to buy shares in the company but retaining majority interest and policy control within the government, 7. Change the marketing organizations for other produce into organizations controlled by the producers under governmental supervision, 8. Abstain from undertaking further government projects to mech- anize rice cultivation, other than those already under way, and such smaller additional measures as are considered useful to help small farmers in periods of labor peaks.

III. Proposed Investment Program

These suggested policy changes would be of little use if not accompanied by many of the positive aids proposed for specific lines of production. Especially important are the intensified technical studies and expanded extension services of the Department of Agriculture. For the next five years, the various recommendations of the mission in this field call for an aggregate new expenditure of about $2.25 million, over and above the present operating budget of the Depart- ment. The proposed distribution of these additional funds is shown in Table 50. Initial capital outlays required for efficient use of the technical personnel will make these expenses heaviest during the first two years. For agricultural projects outside the Department of Agriculture itself, a similar analysis of expenditure is shown in Table 51. In this category are found the major capital outlays for construction, land settlement and farm credit, hence the total expenditure is larger. Again the initial outlay is heaviest; out of a five-year total of $7.8 million, $5 million would be required in the first year of the program. In the preliminary investment program of the government for 1954-58 funds were originally earmarked for a central farm machinery workshop, a milk pasteurization plant, a riverain development pilot project and for an investigation into parboiling of rice. In review, the mission considers the investigation of parboiling superfluous because of the establishment of large R.D.C. mills in several locations. The milk pasteurization plant is included in the new investment program 224 TABLE 50 RECOMMENDED ADDITIONAL EXPENDITURE BY THE DEPARTMENT OF AGRICULTURE, 1954-58 (in dollars) Capital Recur- Recommended Five-Year Investment Program Costs rent by Years Projects: (5 years) Cost 1954 1955 1956 1957 1958 Total t Soils survey ...... 50,000 300,000 110,000 60,000 60,000 60,000 60,000 350,000 ; Major agricultural station .... 605,000 150,000 390,000 215,000 50,000 50,000 50,000 755,000 w Rice experiment station ...... 200,000 - 10Q,000 100,000 - - - 200,000 Hosororo station, N. W District ...... 20,000 50,000 30,000 10,000 10,000 10,000 10,000 70,000 | Potaro-Mazaruni station ...... 45,000 15,000 - 45,000 5,000 5,000 5,000 60,000 ° D Cocoa trial plots ...... - 60,000 12,000 12,000 12,000 12,000 12,000 60,000 > 9 St. Ignatius station .200,000.... 200,000 50,000 110,000 110,000 10,000 10,000 10,000 250,000 ¢ Ebini station ...... 72,000 85,000 89,000 17,000 17,000 17,000 17,000 157,000 $ Additional Staff: Two scientists ...... I...... 30,000 60,000 42,000 12,000 12,000 12,000 12,000 90,000 m Agriculture officer, Potaro-Mazaruni ...... - 25,000 5,000 5,000 5,000 5,000 5,000 25,000 g Veterinary service, Rupununi ...... - 80,000 16,000 16,000 16,000 16,000 16,000 80,000 Agricultural machinery engineer -...... - 24,000 - 6,000 6,000 6,000 6,000 24,000

Farm management officer -- 50,000 10,000 10,000 10,000 10,000 10,000 50,000 Ten extension instructors ...... 25,000 55,500 15,500 20,000 15,000 15,000 15,000 80,500

TOTALS .... 1,247,000 1,004,500 929,500 638,000 228,000 228,000 228,000 2,251,500 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

TABLE 51

NET INVESTMENT PROGRAM FOR 1954-1958 CAPITAL AND RECURRENT ExPENDrTUREs LESS RECOVERIES IN PROGRAM-YEARS (thousand dollars) Project 1954 1955 1956 1957 1958 Total Rice Development Corporation a. Corentyne Mill ...... 1,500 - - - - 1,500 b. Anna Regina Mill ...... 1,200 - - - - 1,200 c. Working capital ...... 500 - - - - 500 Drainage Machinery pool ...... 100 200 .200 - - 500 Land Settlement a. Pilot project ...... 80 10 10 - - 100 b. Boerasirie (Essequibo) ...... 200 300 400 50 50 1,000 Settlement Scheme c. Economic studies ...... 10 10 10 10 10 50 Milk pasteurization plant ...... 241 - - - - 241 Fishmarket-Georgetown ...... 100 100 - - - 200 Fisheries-Development a. Sea fishing, research ...... 70 10 10 5 5 100 b. Brackish water-pond station 30 6 3 3 3 45 c. Fresh water-pond station .... 12 2 2 2 2 20 Credits: Rice farmers' indebtedness, rice mills, copra dryers, Rupununi ranchers, development intermediate savannahs, abattoirs George- town, Settlement Essequibo, sea fisheries. Net total ...... 830 603 577 205 130 2,345

Grand Total ...... 4,873 1,241 1,212 275 200 7,801 proposed by the mission, while the proposed allocation for the riverain development project has been somewhat modified. Larger funds than planned have been earmarked for several forms of credit and marketing aids. The mission has not proposed any allowance for the central machin- 226 FIVE-YEAR PROGRAM IN AGRICULTURE ery workshop. Instead, funds are proposed for drainage machinery pools for the use of coconut estates and declared irrigation and drainage areas. It is recommended that two pools be established as pilot projects, with about 10 small draglines and a bulldozer each. One pool should be in West Demerara and another in the region between the Mahaica and the Abary. The estimated capital investment would amount to $500,000, 50% of which would be recoverable in 10 years. Running costs would be recovered through charges to farmers.

227 APPENDIX I Calculations for Drainage

For a given region the necessary drainage capacity can be expressed by the basic equation:

Drainage Capacity = Rainfall - Evaporation - Storage Capacity or in symbols: D = R - E - S. The storage capacity S, however, is the sum of the separate storage capacities of the soil itself, the ditches, and the land surface subject to flooding. Substituting these three components for S, we may say:

D = R-E-(S. + Sd + Si) (Equation 1) Units throughout are acre-inches per acre per unit time and custom- arily for a 24-hour period. * Equation (1) will be discussed below in relation to a number of crop possibilities. It should be noted that the factors of this equation vary for different crops and for different periods of the year. Special crop characteristics affecting drainage capacity will be reviewed in each case. The soil will be taken as a constant, however, and will be assumed to consist of clay having a measurable percolation capacity in a six-inch topsoil layer only. Rice as an Autumn Crop, Hand-planted and Hiand-reaped. Rice is grown in inundated fields with a water depth between four and six inches. Normally it can stand a temporary higher water cover without damage, but to what degree depends on age. The full grown crop, when it is not yet ripening, can even stand total submersion for several days. Four inches of extra water is accepted in most rice- growing countries as harmless, except when the plants are very young. In the harvest period dry fields are desirable, but not alsolutely necessary; if reaped by hand the rice can be taken from flooded fields, although transport of the wet paddy is very difficult. In the wet season, the storage capacities of soil (S&) and ditches 228 CALCULATIONS FOR DRAINAGE

(Sd) are zero. Evaporation can be taken as 0.15 inch per 24 hours. Thus equation (1) gives: D = R - 0.15 - 4.0 (la) or R = D + 4.15 Rainfall of more than five inches in 24 hours is exceptional even in British Guiana. A drainage capacity of 0.8 acre-inch per acre per 24 hours will take care of every reasonably heavy rainfall; for this the standard capacity of 1.0 acre-inch in 24 hours, usually considered necessary in British Guiana, is ample. There is, however, a second problem: to get rid of the excess water before a new rainfall starts. To investigate this part of the problem it is necessary to consider rainfall periods. It may be assumed that the higher water level will be limited to about four days, and therefore that the rainfall of a four-day period must be evacuated by the end of the fifth day. There is, to be sure, the chance that after a four-day period of heavy rain, the fifth day will also bring heavy rainfall, but the rainfall records indicate this to be a remote possibility. For such a four-day period the storage capacity of the flooded land (Si) is zero and equation (1) becomes: 5 D = R4 days - 4E (lb) or R4 days = 5D + 0.6 To determine the frequency of four-day periods of rainfall for our present purpose, the rainfall records of the last five years (1948-1952) have been used. (For a rigorous calculation, the whole 73-year period should be considered, but this report aims only at demonstrating the method.) Table 52 indicates the number of times that periods of four consecutive days have shown rainfall of various aggregate amounts. From the table it is seen that rainfall of more than five inches in four days has occurred in only 2.2% of the 460 possible periods, and rainfall of more than four inches in 5.3% . It thus appears that a drainage capacity of 0.8 acre-inch per acre hours (1t days - 4.6 inches) is also able to absorb every cumulative rainfall that may reasonably be expected. This still does not cover the problem fully. In the period from the middle of April to the middle of May, when the plants are young, they are far more easily harmed by too much water in the fields. At that time two inches would be considered high. It is necessary not only to 229 TABLE 52 PROBABILITY OF CONCENTRATED RAINFALL DURING GROWING PERIOD OF AUTUMN RICE CROP (Analysis of Rainfall Records at Georgetown Station, 1948-52) Body of Table Shows Number of Times Rainfall of Given Amount Occurred Over Q 4 Consecutive Days during Period at Left Total Highest Periods of Monthly Daily Total Inches Rainfall in 4 Days Excessive Period Rainfai Rainfall 0-1 1-2 2-3 3-4 4-5 Over 5 Rainfall 01 May 1948 14.24 2.17 7 9 11 3 1 None 1949 10.25 2.03 19 7 2 2 1 _ None 1950 11.23 1.96 14 8 4 3 2 - 6th-8th: 4.8 ¢ 1951 19.08 7.59 15 5 5 2 - 4 7th-8th: 9.9 : 1952 9.40 2.00 15 10 6 - - - None June 1948 12.21 1.08 4 19 6 1 - - None 1949 13.47 3.70 13 7 5 1 - 4 28th-29th: 6.5 > 1950 15.55 3.52 4 16 6 1 1 2 3rd-5th: 5.9 1951 18.96 2.47 2 8 12 3 5 - None 1952 17.38 2.02 6 7 11 5 1 - None July 1948 12.38 1.98 12 7 9 3 - - None 1949 10.16 1.39 10 17 4 - - - None 1950 13.71 2.85 10 13 3 1 3 1 28th-29th: 4.5 1951 10.59 1.81 9 18 3 1 - - None 1952 11.00 1.29 7 19 5 - - - None Number of Times Occurring in 460 4-day Periods 147 170 92 26 14 11

Percentage of Total Number of Periods 32.0 37.0 20.0 5.7 3.0 2.4

Occurrence of Given Total RainfaU Over t 2 Consecutive Days

, May 1948 20 8 3 1949 24 5 2 - - - 1950 23 5 1 2 - 1951 23 3 3 - - 2 1952 23 6 2 - - -

Number of Times Occurring in 155 2-day Periods 113 27 11 2 - 2

Percentage of Total

Number of Periods 72.9 17.4 7.1 1.3 - 1.3 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA rid the fields of excess water but also to make certain that, during this period, the water level will not rise more than two inches. Table 52 indicates the number of times that two-day periods in May show rainfall between 0-1, 1-2, 2-3, etc. inches. The frequency of rainfall of over three inches appears to be only 2.6%. Thus, in this respect, a drainage capacity of 0.8 acre-inch per acre per 24 hours is sufficient. The study of the necessary drainage capacity for the rice crop will become increasingly important in the future. There are areas in the colony where, even now, drainage by gravity is impossible. With the anticipated extension of the rice-growing area, this problem will become more acute. Draining 1.0 acre-inch per acre per 24 hours is a very heavy task to carry out with pumps. For comparison it may be noted that pumping stations on the modern polders of the Nether- lands have a capacity of 1.2 liters per second per hectare, and those of Northern Italy 2 liters per second per hectare. A capacity of 1.0 acre-inch per acre'per 24 hours would be about 3 liters per second per hectare. At best, it will be difficult to make such a heavy pump- capacity a paying proposition. Therefore a thorough study of rainfall data will be necessary. Rice as a Mechanized Autumn Crop. When rice is grown on a mechanized basis, drainage difficulties increase considerably. To the problems of plant growing, the problems of using the equipment are added. Plowing must be done in a moist soil, since the clay becomes hard as stone when dry, and soft and slippery when wet. Require- ments for sowing are similar; there should be sufficient water at least one or two days afterwards, or there will be no germination. Harvest- ing can be done in flooded fields with a self-propelled combine, but this type of machine is far too costly for the average farmer. A tractor-drawn combine can perform successfully only in a moderately dry field. All in all, this calls for a number of coincidences that would be hard to realize, even with a drainage capacity of 1.0 acre-inch per acre per 24 hours. While it lies outside the scope of this report to work out the intricate calculations required, such calculations should be undertaken before further large-scale mechanization is considered. Rice as a Second or Spring Crop. As a second crop, rice offers no drainage problems. The irrigation problem will be discussed at a later point.

232 CALCULATIONS FOR DRAINAGE

Second Crops of Soya and Maize, That Cannot Stand Flooding. Crops of this type are not now grown in the coastal belt. It is evident, however, that they would offer a most desirable rotation with rice. Accordingly, their drainage possibilities should be considered. Soya can stand flooding for only a few hours, and even then the're is a chance of damage; maize can bear it for about 12 to 24 hours. For soya the rainfall has to be evacuated within 24 hours, while for maize the evacuation time can go up to 36 hours. The period in which the crop would be grown is November-March. Presumably the greater part would be sown in December and harvested at the end of February or the beginning of March. In these months no long, continued rainfall is to be expected. When there is a heavy shower, the land will be more or less dry, and there is therefore an appreciable storage in the topsoil and in the ditches. It is difficult to estimate this quantitatively. In theory a totally dry layer of six inches, with 40% pore space, can absorb 2.4 inches of water. Practically the capacity is far less. Also the capacity of the ditches, when thoroughly calculated, is not as great as it would appear at first sight. It is assumed (principally on the basis of research in Nickerie, Surinam) that S. + Sd = 1.0 acre-inch per acre. This, however, holds good only for the first day.

Thus if S, = zero (flooding is not allowed) and E 0.2 (somewhat higher than the average) Then D = R - 1.2 for soya (Ic). and 1.5D = R - 1.2 for maize (Id)

The rainfall records indicate that in the recorded 73 years, there have been some very heavy showers during the season. But no reasonable drainage capacity can compete with every rainfall. There will always be cases of partial or total loss of a crop. In this respect perennial crops rank below rice, which will always give some yield even if damaged by flood water. Necessary drainage in this case can be determined only through a calculation of probabilities, which for accuracy requires long series of data meeting certain rnathematical conditions. Merely to indicate the method, the rainfall records of November-March of the last five years have been used. 233 TABLE 53

FREQUENCY AND DAILY AMOUNT OF RAINFALL DURING THE SHORT WET AND SHORT DRY PERIODS (Georgetown Station-1948-52) Body of Table Shows Number of Times Rainfall of Given Amount Occurred Within Period at Left 0 T'otal Highest Periods of Period Inches of Rainfall in 24 hours Monthly Daily Excessive 0-0.5 0.5-1.0 1.0-1.5 1.5-2.0 2.0-2.5 Over 2.5 Rainfall Rainfall Rainfall

Nov. '48 25 3 - 1 1 7.57 2.15 13th-15th 4.49 c. '49 27 3 - - -- 5.10 0.82 None '50 27 1 1 - - 1 5.96 3.43 None '51 30 - - - - - 0.60 0.20 None '52 24 3 - 1 2 - 9.43 2.30 None Dec. '48 26 3 1 1 - - 7.38 1.97 None > '49 16 5 2 1 4 3 32.47 5.52 llth-17th 15.01 t 28th-30th 7.28 '50 27 4 - - 5.34 0.59 None '51 27 3 - 1 - - 6.39 1.69 None '52 23 4 1 2 - 1 13.47 3.52 20th-31st 5.34 2 Jan. '48 28 2 1 - - - 4.52 1.47 None '49 24 3 2 2 - - 10.16 1.98 9th-lOth 3.92 R '50 16 4 2 4 2 3 32.72 5.55 19th-21st 8.85 24th-26th 8.61 '51 18 5 3 3 - 2 20.39 2.90 18th-21st 7.19 '52 22 5 2 1 - 1 13.26 2.60 28th-31st 5.82 Feb. '48 26 - 1 - 2 - 8.11 2.25 24th-25th 4.32 '49 26 1 - - 1 - 5.98 2.27 None '50 24 1 2 1 - - 6.69 1.56 None '51 21 5 - 1 1 - 9.96 2.02 None '52 28 - 1 - - - 3.45 1.30 None ;> Mar. '48 26 2 1 2 - - 8.10 1.95 None '49 26 2 1 1 - 1 7.95 3.10 None 0z '50 31 - - - - - 1.29 0.30 None C '51 28 1 2 - - 3.91 1.03 None '52 31 - - - - - 0.30 0.15 None Number of I times in 757 days 627 60 23 22 13 12 4 Percentage of total number of days 82.9 7.9 3.0 2.9 1.7 1.6 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Table 53 gives the frequency of rainfall of various amounts in 24- hour periods. The frequency of rainfall over two inches in a single day is only 4.3%. For R = 2, the equations (1c) and (Id) give: D soya = 0.8 acre-inch per acre per 24 hours; D maize = 0.55 acre-inch per acre per 24 hours. At first sight, then, it might appear that with the drainage capacity mentioned for rice (max. 1.0 acre-inch per acre per 24 hours) a second crop of soya or maize could be planted with a reasonable chance for success. But this is not a valid conclusion, for the real problem lies elsewhere. One period of heavy rainfall would be sufficient to destroy the soya crop, and would damage maize heavily. Rainfall records show two or three consecutive days of heavy rainfall in jour out of five growing periods from December-February 1948-49 up to 1952-53. Even when it is borne in mind that December 1949-January 1950 was a period of catastrophic rainfall (60 inches in 40 days), the other heavy rains could not have been handled by normal drainage facilities. For crops that are seriously damaged in a period of heavy rainfall, therefore, it is essential to compute the frequency of occurrence of those yearly growing periods in which a heavy rainfall is recorded. Space does not permit doing so in this report, but the available figures indicate that sufficient drainage for such crops as soya and maize will not be feasible in British Guiana. Before consideration is given to these crops, the available rainfall records should be carefully studied. Sugar Cane. No calculations are offered here for the drainage of sugar cane, since these have been made for various conditions by the technical staff of the sugar estates. For the most part, satisfactory practices have been established. The drainage channels on the sugar estates present one unusual and difficult problem. Because of the use of the irrigation canals for navigation, the drainage channels have to pass under them. In the past, the hydraulic design of some of the culverts and inverted syphons has been primitive. Reconstructing them on modern lines will permit them to operate under a smaller head, and thereby considerably improve the drainage of the fields at the back of the estate. In several estates a thorough investigation and overhaul of the drainage system has been undertaken, and it is expected that this problem will be resolved. 236 CALCULATIONS FOR DRAINAGE

The Mechanics of Drainage. In the foregoing, drainage has been discussed in terms of quantitative needs rather than methods. In British Guiana the land areas concerned are mostly polders, drained either by gravity through tidal difference, or artificially with pumping stations. Apart from the problem of the capacity of sluices and pumps, however, there are problems in the actual conveyance of water-first from the field to the ditch, then to the side-line channel, and finally to the outlet. Drainage of the rice fields is greatly improved by adequate leveling. Here action can be taken by the Agricultural Extension Service and the Irrigation Department. As far as the mission could ascertain, the leveling of the rice fields in British Guiana is far below what is normal practice in Asiatic countries. Another point arises through the layout of the fields. Because of the appreciable width of the estates, the ditches are mostly laid out perpendicular to the side-line channels. It is quite important that these ditches be dug to adequate capacity. The procedure of leaving this entirely to the farmer is faulty. Where the government can determine the layout in new settlements, ditch digging should be done either by the Service itself at the farmers' expense, or by the farmer under technical direction. It is also important that each farmer have his own drainage and his own irrigation ditch. Where drainage ditches serve two fields in common, both owners leave proper maintenance to the other man. This is encountered in every rice growing area in the world. Conveyance of water down the side-line channels to the outlet offers no difficulties. The capacity can be calculated with the normal hydraulic formulas. In new areas digging should be carried out by the Public Works Department. It is, however, of the greatest importance that early legislative action be taken to compel landowners to maintain their side-line channels in such condition as to provide the necessary drainage capacity continuously. Otherwise the system of tenancy, failing to fix responsibility for this function, will lead to serious damage to the harvest and to the national economy in every wet year. A technical point which has to be considered concerns the reloca- tion of outlets. Because of the silting-up of drainage outlets in many places, there is a tendency to connect several side-line channels by digging canals parallel to the coast. The water can then be let out 237 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA through a few large outlet sluices, and the resulting powerful stream keeps the channel open. This provides a way out of the immediate difficulties, but its influence on the drainage of the fields farther inland is bad. Before starting such a procedure, a thorough investigation of the consequences should be made. In several cases it appears that the time available for draining the fields farther inland has been cut down to a few hours. Conclusions 1. It is possible that drainage capacity for the normal rice crop can be reduced from 1.0 to 0.8 acre-inch per acre per 24 hours. Because of its importance for areas which will have to be drained by pumps, this prospect should be thoroughly investigated. 2. It is likely that, for mechanized rice cultivation, a drainage capacity of 1.0 acre-inch per acre per 24 hours is insufficient. Since mechanization is being extended, it is urgent that this problem be studied. 3. It is probable that drainage of soya and maize will be very expensive. Before even considering the possibility of these crops (as was done when the Boerasirie Scheme was started) a thorough investigation into the frequency of heavy rainfall in December-February period is necessary. 4. An extensive program for better leveling of rice fields should be started.

238 APPENDIX II

Calculations for Irrigation

It is generally agreed, and confirmed by a study of rainfall data, that the only crops in British Guiana needing irrigation are rice and sugar cane. Both will be discussed here, but calculations will be shown for rice only. With regard to sugar cane irrigation, this report will consider only how far its water requirements affect the possibilities of rice growing. For illustration it will be assumed that two rice crops are planted: an autumn crop planted in April and harvested in September, and a spring crop planted at the end of October and harvested in March. This is not the present practice; but with a growing population pressing for more land, some intensification of agriculture must be considered in the near future and, presumably, a second rice crop will be the major immediate practical possibility. Irrigation of Rice. Computations for rice irrigation are usually made on either a monthly or a fortnightly basis. Rice, as it grows in flooded fields, is in itself a kind of regulator for rainfall, and moreover it can easily tolerate temporary differences in water supply. Since the purpose here is only a demonstration of methods, sample computations can be made on a monthly basis. The general equation for irrigation is: Rainfall + Irrigation = Evapotranspiration + Percolation + Run- off; or in symbols: R + I = Et + P + Ru (Equation 2) Evapotranspiration of rice in the tropics is generally considered to be between four and five millimeters per 24. hours during the rainy season, going up to six millimeters in the dry season. To be on the safe side, it may be assumed for British Guiana to be 0.25 inches (6.35 millimeters) per 24 hours during both seasons. A general figure of eight inches per month should cover all evaporation losses. Inas- 239 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA much as the clay in the coastal plain is practically impervious to water, the percolation losses, P, are nil. Run-off can be prevented in well- leveled and dyked rice fields, and therefore Ru may be taken as zero. Under these conditions, to balance the normal losses it is necessary that: R + I = 8 + 0 + 0 = 8 inches monthly (2a) There is, however, the problem of wetting the soil for planting or sowing. Thorough wetting until loose mud structure results, as is done in Asia before transplanting, requires about 12 inches of water. When planting two rice crops in British Guiana this wetting must be done, at the-latest, during the second half of November and from the last week of April through the first week of May. Direct sowing on the fields takes far less water. One method is to sow in wet fields by hand or by airplane, draining off afterwards to give the tiny plant a chance to fasten its roots. Another is machine sowing with a grain drill on slightly moistened fields, flooding slowly after germination has started. For both methods between four and six inches of water is sufficient. Direct sowing in British Guiana should be undertaken in October-November and at the beginning of April. When computing the necessary quantity of water for an area, it must be kept in mind that in British Guiana at least half of the crop is transplanted, yet there is a definite tendency to go over to direct sowing. With this taken into account the following figures are considered acceptable: October: one flooding of 4 inches November: 10 inches March: one flooding of 4 inches April: 8 inches May: 10 inches

In relation to rainfall, computation for irrigation is far simpler than for drainage. The fact that the Botanical Garden Station at Georgetown has recorded monthly rainfall figures over 73 consecutive years enables us to compute the frequency of certain values mathematically. For this the method outlined by Goodrich' is sug-

' R. D. Goodrich. Straight line plotting of skew frequency data. Transactions Am. Soc. of Civil Engineers, 1927. . 240 CALCULATIONS FOR IRRIGATION

gested, as its equations are particularly applicable to the plotting of hydraulic data based on a limited number of observations in the series. In Table 54, the 73-year rainfall data for each calendar month are grouped in such a way that the percentage of years in which a certain month has shown rainfall of less than a given number of inches (up to 10) can be found. From these values the rainfall for each month in a so-called "207%dry year" can be computed graphically. The rainfall will exceed the value of this 20 % dry year in 80 years out of 100, and will be less in 20 years out of 100. The 20 % dry year is usually taken as a basis for computing the amount of water required for irrigation of rice, since the rice plant adjusts itself fairly well to minor water deficiencies. In only five to 10 of the 20 deficient years in a century will the shortage be appreciable, and this is considered to be a normal risk in agriculture. In Table 55 the computed figures are brought together. For each month, column (3) shows the number of acre-inches per acre that are considered necessary. In column (5) the calculated rainfall in a 20 o dry year is entered. Normally the difference between columns (3) and (5) gives, in column (6), the net quantity of irrigation water that has to be supplied. Over whole crop periods the total.irrigation demand is seen to be about 24 inches for the spring crop and about 16 inches for the autumn crop. If only an autumn crop is planted, as is customary now, the full 16 inches may not be necessary. When the March-April rainfall is short, the farmers will defer planting until some rain comes. The only danger then is a shortage of water in August, when a low rainfall is fairly frequent (See Table 54). With well-filled fields in the rain-abundant month of July, however, this danger is not so serious. It is always advantageous to have irrigation water available for the autumn crop, but it is not a strict necessity. As far as can be seen, in practice far more damage is done through lack of proper drainage than through lack of irrigation water. The gross irrigation requirement depends largely on the state of maintenance of the canals and on how the distribution is organized. Standards of both are low in British Guiana. Therefore the figure of 0.3 inches per 24 hours, widely used in the colony, is in truth too low a basis for the design of canals, notwithstanding the fact that it is too high for the computation of the total quantity of water needed (0.3 241 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA inches per day over 120 days would give 36 inches). To show this, the monthly supply that can be realized with canals based on 0.3 inches per day is given in column (7) of Table 55. Especially in November the excess over what is necessary is too small, for a canal efficiency of 90% cannot be obtained. Recent research in the United States has clearly pointed this out.

TABLE 54 FREQUENCY OF MONTHLY RAINFALL IN DIFFERENT MONTHS

Station Percentage of monthly rainfall values for Georgetown the difgerent months 1880-1952 of the year Inches of rainfall 0 1 2 3 4 5 6 7 8 9 10 January 1.4 8.2 12.3 21.9 31.9 37.0 42.4 53.4 60.3 64.4 February ...... 8.2 19.2 37.0 52.1 56.2 64.4 69.8 71.2 76.7 82.2 March ...... 9.6 28.8 39.8 49.3 56.2 58.9 64.4 69.8 79.5 83.5 April ...... 2.7 16.4 26.0 34.3 45.2 52.2 58.9 68.5 76.7 78.1 May ...... - 1.4 2.7 6.8 9.6 15.1 16.4 23.3 24.7 30.1 June ...... - - - - - 2.7 5.5 12.3 16.4 26.0 July ...... - - 1.4 2.7 4.1 5.5 8.2 23.3 34.3 46.6 August ...... - 4.1 6.8 13.7 30.1 52.1 65.8 75.3 80.9 86.3 September .... 16.4 38.4 52.1 69.8 83.5 90.4 96.0 100.0 - - October ...... 20.6 39.8 57.5 75.3 84.9 91.8 93.2 94.5 98.7 100.0 November ...... 13.7 21.9 31.5 39.8 53.4 63.0 72.6 78.0 82.2 84.9 December ...... - 2.7 5.5 8.2 13.7 20.6 26.0 34.3 37.0 45.2

Irrigation of Sugar Cane. Sugar estates in British Guiana provide their own irrigation water. They have established rights, either to derive water from the conservancies behind the estates, or to pump it out of creeks. In the new projects, however, sugar cane will receive a supply from the water district, and separate estimates have been made of the quantity of water necessary for the sugar industry. These estimates, as given, appear excessive. It is evident that these quantities are based primarily on existing "water rights." In other countries, such rights are granted only when 242 TABLE 55 NECESSARY SUPPLY OF IRRIGATION WATER PER ACRE FOR SPRING AND AUTUMN RICE CROP Capacity Acre-inches of canals Crops Acre-inches available Acre-inches based Months to be considered Particulars in a 20% to be upon 0.3 irrigated necessary dry year supplied inch per day (1) (2) (3) (4) (5) (6) (7) October Spring rice 4 one flooding 1.0 4.0 (Note) 9.3. November 10 1.7 8.3 9.0 ;- December 8 6.0 2.0 9.3 o January " 8 3.8 4.2 9.3 9 February " 8 2.0 6.0 8.4 March (1-23) - harvest 1.2 - 6.9 about 24 acre-in. March (24-31) Autumn rice 4 one flooding 0.4 4.0 (Note) 2.4 April 8 2.4 5.6 9.0 May 10 7.5 2.5 9.3 ° June 8 9.4 - 9.0 July 8 7.8 0.2 9.3 August 8 4.4 3.6 9.3 September - harvest 1.2 - 9.0 about 16 acre-in. Note: At the end of October and the end of March one flooding is necessary to wet the fields. THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA there is a real beneficial use of the irrigation water. British Guiana now faces a rapidly growing additional demand for irrigation water for rice in the face of a limited supply. The technically advanced sugar industry would be the first to acknowledge the importance of this. The following analysis is intended to suggest better procedures for the future. One difficulty rests in the fact that "irrigation" water here is not used solely for irrigation. After each cycle of four or five years the cane fields are flood-fallowed. Furthermore, practically all sugar estates transport their cane in barges through the irrigation canals. In the dry months, water must be supplied to keep the level in these canals at a certain minimum. Flood-fallowing calls for a one-foot depth of water. It is done after the cutting of the canie, mostly in the dry months. After the area is flooded, water is needed to balance evaporation. For this, irrigation water is necessary only in the months when evaporation exceeds rainfall. Normally this is true of August, September, October, November, February, March and April. In these months the evaporation from a free water surface will be about 0.2 inches per day or, for 210 days, 42 inches. But from Table 55, column (5), we see that the aggregate rainfall for these months in a 20% dry year is about 14 inches. Thus the rainfall deficit is 42 minus 14, or 28 inches. Adding 12 inches for flooding gives a total of 40 inches of irrigation water needed on the flood-fallowed area. However, the flood-fallowed area is only about 22% of the cane area, and it is not flood-fallowed for the whole year. A compensating figure of 20%o is on the safe side. Accordingly, for the whole cane area, the amount of water required for flood-fallowing may be computed as one fifth of that needed by the land actually under flood- fallowing at a given time. It is therefore equivalent to eight inches per year over the entire cane area. Canal losses contribute further to the water demand. These include evaporation from the canal water surface, percolation through the banks, and leakage through the sluices. For the first, the unit-area deficit (evaporation minus rainfall) is the same as in flood-fallowing. The canal water surface, however, is reckoned at only 8% of the cane area. Thus the loss from this source is equivalent to 8% of 28 inches or 2.2 inches over the whole cane area. 244 CALCULATIONS FOR IRRIGATION

Percolation losses can be cut down to almost nothing by proper maintenance. The clay itself is impervious; the losses occur only where former cuts have been filled in with clay mixed with organic materials. Leakage losses through sluices are unavoidable, but the modern structures that are now being put in by several estates will do much to reduce them. A supply of 1.0 cusec per square mile is considered reasonable to balance leakage losses. Calculated in inches over the cane area, this comes to 0.04 inches per day or, with a grind- ing period of 270 days, 10.8 inches per year. Adding this to the 2.2 inches for evaporation, the total canal losses amount to 13 inches per year. The water requirement of sugar cane is a point on which opinions differ. Climate as well as irrigation methods play a role in this. In Java, with a fairly dry monsoon period of four months, 0.4 liter per second per hectare (which comes to 0.14 inches per day) is considered ample. India and Egypt, with much drier climates, employ between 1.5 and 2 times as much. British Guiana experiences only three months-September, October and March-during which irrigation of sugar cane should be contemplated, and then only in dry years. Even in these months the humidity is fairly high. In the other months the ample water capacity of the clay soil will carry the plant over dry spells. As far as can be seen, when irrigation is necessary at all, about 0.15 acre-inches per acre per day should be quite sufficient. Over a 90-day period this comes to 13.5 inches. Thus we may conclude that the total quantity of water needed for the sugar area over a period of one year is the sum of 8 + 13 + 13.5, which is 34.5 inches or in round figures three acre-feet per acre. In contrast, Hutchinson (in an estimate made for the Modified Canje Project, presumably on the authority of local agricultural experts) calculates the water necessary for the sugar industry as 1,500 cubic feet per acre during 200 days. This is equivalent to 84 inches or seven acre-feet per acre per year. Obviously there is urgent need for a thorough engineering investigation to determine the reason for such discrepancies. It will be to the advantage of everybody when the quantity of water that the sugar industry needs for its various purposes is definitely ascertained. It is difficult to understand why, in a layout apparently so favorable for the use of giant sprinklers, this equipment has not yet been tried. 245 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The method of flooding that is used nowadays is definitely objection- able from the agricultural point of view. It would be desirable to start experiments with modern equipment. Sources of Irrigation Water. There are two differing opinions concerning the most desirable way to obtain irrigation water locally. Several projects are based on diversion from creeks or small rivers, either by gravity or with pumps. The projects for Blocks I, II and III in the Corentyne area, and the abandoned project for the Bonasika barrage, belong to this group. As opposed to this, Hutchinson advo- cated storage by building long low dams back of the old estates and the new polders. Hutchinson argues that empoldering more and more of the flood area of the rivers must eventually lead to serious floodings. He considers that storage of flood water in shallow reservoirs must go hand in hand with the creation of new land. There is much evidence to support this view. In the Abary and Mahaica plains, for example, it has been shown that the capacity of the river mouth is far too small to permit floods to pass. Inundations are a normal feature in these areas, and will certainly become more serious with the increase in empoldered land. The point may be overstressed, of course. The floodlands of several of these rivers (the Canje, for example) are still fairly heavily wooded, and little is yet known about the capacity of such woodland to absorb floods. The slope of an inundation here must fall off rapidly away from the river, and presumably a part of the floodplain is filled only by direct rainfall. Moreover, there is a tendency to underestimate the difficulties and cost of building long dams on land covered with forest, shrub or pegasse. There is, however, another consideration which strongly backs the Hutchinson solution. In the smaller rivers, most of whose volume originates in the sandy hills, the streamflow probably dwindles to almost nothing in really dry years. For the irrigation of Blocks I, II and III this has been foreseen, and a diversion canal (the Torani canal) is being dug from the Berbice river to the Canje. This is a solution, but not a very advantageous one. The cost is high and the output more or less uncertain, since the canal is to be operated on the differences of tide between the two rivers. Only with a system of 246 CALCULATIONS FOR IRRIGATION fast-moving and cleverly operated gates will it be possible to get a reasonable quantity of water into the Canje river by this means. A solution with shallow reservoirs is presumably the best. One of these, the Boerasirie reservoir, is under construction; it will be interesting to compare its ultimate cost and to see how such technical problems as those of freeboard, safeguarding with weirs or sluices, etc. will be solved in practice. Conclusions 1. The quantity of irrigation water necessary for a rice crop should be calculated with regard to rainfall and evaporation, 2. In calculating the capacity of the canals, the highest recorded monthly quantity should be augmented by a percentage allowance for losses. This percentage should vary with length of canals and the expected efficiency of distribution, but it should be at least 20%o, 3. Irrigation engineers, agriculturists and technicians from the sugar industry should unite to investigate the true yearly water needs of this industry, 4. Water supply from storage seems to offer better prospects than a supply from seasonal flow.

247

APPENDIX III

Supplementary Tables TABLE 56

STATISTICS OF SUGAR AND SLGAR PRODUCTS

Acreage Output Export TOTAL VALUE Yield Rum Local Rum Mo- OF SALES Under (tons (000's Sales (000's lasses All Products Culti- per Sugar proof Sugar Sugar proof (000's Ex- Local Year vationt Reaped' acre) (tons) gals.) (tons) (tons) gals.) gals.) ports Sales Total (thousand dollars) C

1938 ...... 69,087 63,033 3.12 196,502 1,708 10,258 138,486 1,056 5,892 8,334 570 8,904 - 1939 ...... 67,718 62,012 3.05 189,245 1,423 10,666 179,110 979 5,360 8,843 594 9,437 > 1940 ...... 70,622 64.378 2.60 167,645 2,084 11,002 142,714 1,812 3,720 8,047 616 8,663 ° O 1941 ...... 73,063 63,642 2.95 188,009 2,505 11,355 154,371 1,321 5,441 9,339 644 9,983 u 1942 ...... 74,583 62,730 3.06 191,767 2,471 12,554 134,539 984 3,097 8,089 761 8,850 k 1943 ...... 65,775 62,348 2.76 166,406 2,412 13,540 131,234 1,473 282 8,471 859 9,330 1944 ...... 62,554 60,733 2.28 138,472 3,092 13,594 178,039 2,176 1,664 13,270 853 14,123 > 1945 ...... 63,052 59,098 2.66 157,201 3,187 14,162 132,617 2,209 1,416 12,287 896 13,183 > 1946 ...... 64,977 60,229 2.84 171,051 2,787 14,128 147,780 1,695 1,894 14,330 1,079 15,409 1947 ...... 66,904 62,033 2.70 167,490 3,216 14,628 185,112 1,725 3,841 21,562 1,140 22,702 > 1948 ...... 66,676 56,626 3.05 172,991 3,592 15,762 136,673 3,214 1,734 20,336 1,390 21,726 u 1949 ...... 70,000 55,839 3.12 174,236 3,126 14,895 173,818 3,683 4,102 26,248 1,617 27,865 m 1950 ...... 72,500 64,816 3.02 195,651 2,090 15,529 173,272 2,656 5,871 27,382 1,747 29,129 2 1951 ...... n.a. 66,964 3.19 217,306 2,384 16,173 180,283 2,040 5,512 31,155 1,905 33,060 > 1952 ...... n.a. 72,787 3.33 242,692 16,427 234,185 1,085 10,791 45,577 2,213 47,790

'Including farmers' cane, which is less than 2%. TABLE 57

STATISTICS ON RICE

Prices B. WF.. S' for pro- Yield Deliv- ducers acre Acreage reaped Estimated production Total production of rice ered to Export paddy Rice Rice autumn of paddy (in tons) (in tons R.M.B. of rice per bag No. 2 Brown crop c, for crop (in (in gross per bag B kg. x Year Spring Autumn Total Spring Autumn Total (in tons) year)' tons) tons) 143 lbs. 180 lbs. (local) paddy ' Average 1937-40 8,200 58,265 66,465 - - 65,722 39,440 - - 13,908 - 3.87' - - 1941 20,341 82,906 103,247 8,310 76,790 85,100 51,030 - 23,455 9,098 1.20 3.90 4.50 926 : 1942 15,408 76,244 91,652 10,000 71,800 81,800 49,080 52,072 34,394 22,837 2.15 5.80 5.65 942 1943 17,711 60,488 78,199 11,100 76,530 87,630 52,519 49,740 35,990 17,115 2.15 6.00 5.65 1,265 Px 1944 14,436 73,972 88,408 14,892 83,356 98,248 58,942 54,848 36,538 25,001 2.15 6.00 5.65 1,127 < 1945 16,128 79,214 95,342 11,227 89,780 101,007 60,604 56,749 39,961 25,677 2.15 6.00 5.65 1,134 ; 1946 . 15,140 85,623 100,763 11,347 96,113 107,460 64,472 60,672 40,284 23,321 2.15 6.00 5.65 1,122 C 1947 12,016 88,886 100,902 4,184 89,800 93,984 56,391 60,179 41,865 29,969 2.50 6.70 6.50 1,010 t- 1948 17,711 75,478 93,189 5,830 93,801 99,631 59,780 57,380 34,705 17,455 2.70 7.10 6.50 1,282 C' 1949 16,544 86,377 102,921 8,640 103,865 112,505 67,504 61,462 44,252 26,711 3.15 8.00 8.30 1,203 1950 9,379 93,637 103,016 3,999 98,903 102,902 61,745 64,722 46,431 29,060 3.25 8.50 8.30 1,056 1951 29,009 96,863 125,873 11,791 101,138 112,929 67,760 66,420 46,831 30,469 4.50 12.15 11.70 1,044 1952 17,515 133,301 150,816 9,970 113,552 123,522 74,120 66,667 47,462 27,675 4.95 13.15 12.60 852

' Crop year October-September. ' Valid for crop year. 'Average price of export rice. Source: Annual reports of Department of Agriculture and Rice Marketing Board. TABLE 58

CONDENSED FOOD BALANCE SHEETS 1938, 1946, 1950, 1952 Population: 1938: 334,661 1950: 425,156

1946: 375,571' 1952: 450,0002 t

Net consumption in lbs. Daily Consumption in grams Caloric intake per Protein intake per Product per head3 per head capita per day capita per day

1938 1946 1950 1952 1938 1946 1950 1952 1938 1946 1950 1952 1938 1946 1950 1952 x Cereals: Rice4. 206.6 -219.1 183.6 196.9 257.0 272.5 228.4 244.9 925 981 822 882 17.2 18.3 15.3 16.4 Wheat flour ...... 109.1 84.3 117.3 114.3 135.7 104.9 145.9 142.2 480 369 511 498 14.9 11.5 16.0 15.6 m Other cereals ...... 5.4 3.5 2.9 2.4 6.7 4.4 3.6 3.0 24 16 13 11 0.9 0.6 0.5 0.4 Roots, tubers and plantains: c.N Potatoes .26.1 19.1 39.2 33.7 32.5 24.5 48.8 41.9 23 17 34 29 0.6 0.4 0.8 0.7 . N Ground provisions 110.0 146.4 125.4 132.0 136.8 182.1 156.0 164.2 178 237 203 213 2.2 2.9 2.5 2.6 ti 6. Sugar (cane-sugar) 6 7.6...... 67.6 82.9 79.9 80.5 84.1 103.1 99.4 100.1 325 399 385 387 - - - - Pulses .14.5 10.6 11.0 11.7 18.0 13.2 13.7 14.6 63 46 48 51 4.0 2.9 3.0 3.2 Vegetable fats and oils: Coconut (oil equiv.) ...... 32.5 22.6 22.6 19.8 40.4 28.1 28.1 24.6 357 248 248 218 - - - - Margarine ...... 2.2 0.3 0.7 1.7 2.7 0.4 0.9 2.1 19 3 7 15 0.2 0.2 0.1 0.1 > Vegetables (onions, garlic, and preserved) ...... 8.4 7.0 9.9 8.1 10.4 8.7 12.3 10.1 4 3 5 4 0.1 0.1 0.2 0.1 Fruits and nuts ...... 16.8 39.0 44.4 44.2 20.9 48.5 55.2 55.0 9 22 25 25 0.2 0.4 0.5 0.5 Meat: Beef and veal ...... 12.5 14.4 13.6 14.2 15.7 17.9 17.1 17.7 36 40 39 40 2.4 2.6 2.5 2.6 Meat, salted and pickled ...... 6.0 5.6 4.0 4.7 7.5 7.0 5.0 5.8 18 17 12 14 2.0 1.8 1.3 1.5 : Meat, canned ...... 1.1 0.8 1.3 0.5 1.4 1.0 1.6 0.6 4 3 4 2 0.3 0.2 0.3 0.1 Pork ...... 3.4 4.3 4.0 2.7 4.2 5.3 5.0 3.4 16 20 19 13 0.4 0.5 0.5 0.3' Mutton and fowl ...... 0.2 2.0 1.4 1.2 0.2 2.5 1.7 1.5 1 6 4 4 0.2 0.3 0.2 0.2 Eggs ...... 2.0 2.2 1.5 1.7 2.5 2.7 1.9 2.1 3 4 3 3 0.2 0.3 0.2 0.2 Dairy Products: Butter and cheese ...... 3.1 3.1 3.5 4.3 3.8 3.8 4.4 5.4 23 23 25 30 0.5 0.5 0.7 0.8 Preserved milk ...... 6.4 9.4 11.5 9.1 8.0 11.7 14.3 11.3 24 35 43 34 0.7 1.0 1.2 0.9 Fluid milk ...... 62.8 58.6 52.8 47.1 78.1 72.9 65.7 58.6 48 45 41 36 2.7 2.5 2.2 2.0 Fish: C. Fresh fish7 ...... 19.1 16.0 22.9 26.4 23.8 19.9 28.5 32.8 31 26 38 43 4.5 3.7 5.4 6.2 Fish, smoked and dried ...... 12.3 7.0 9.1 9.6 15.3 8.7 11.4 12.0 27 16 21 22 4.1 2.3 3.1 3.4 > Fish, pickled and canned ...... 3.5 3.8 3.0 2.6 4.4 4.7 3.7 3.2 8 8 7 6 1.2 1.3 1.0 0.9 tt

Total .2,646 2,584 2,557 2,580 59.5 54.3 57.5 58.7 CR Animal Protein .... 19.2 17.0 18.6 19.1 3 C., 'Census, 1946. ' Estimate. Production minus exports and disposals for purposes other than human consumption, plus imports. Production estimates of the De- s. partment of Agriculture; for ground provisions, beef, pork, mutton, eggs and fluid milk revised on basis of the results of the agricultural t census of 1952. 4Production of foregoing crop year (October-September) minus export of year quoted, main harvest is reaped in October-September; > spring harvest in AMarch-April. Yams, cassava, sweet potatoes and plantains. Locally sold. Revised estimates based on landed fish at Georgetown and estimates of rural consumption.

Transport and Communications

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CHAPTER 16

Ports And Inland Shipping

I. Ports

In its ocean-going steamship communications, British Guiana is served by the port of Georgetown. Through the port also pass the vessels serving the bauxite industry at Mackenzie, 67 miles up the Demerara river. Coastwise shipping connects the port, the countrv's principal trading center, with the second port of New Amsterdam, as well as numerous loading berths and wharves along the coast and on the rivers. On the whole, the coastal services are adequate, though they are perhaps too slow and too costly. The existing ports and coast and riverside wharf installations should, with some improvements, be capable of meeting the normal development needs of the colony for a number of years to come. The controlling factor in the use of the port of Georgetown is the bar, two miles seaward from the harbor entrance. Its depth is only nine feet at MLWS, while at New Amsterdam the controlling depth on the bar three miles seaward is only seven feet. The foreshore for miles out to sea consists of light soft mud, much of it kept permanently in suspense by the currents. The existing channel is deep enough to permit a substantial increase in the number of ships using the ports and it can be satisfactorily maintained by the hopper dredge, now in use, at an annual cost of about $82,000. The dredging of deeper channels through the bars would require the permanent operation of a number of powerful dredgers at an annual cost of several hundred thousand dollars. The further alternative of the construction of training walls to contain a deep shipping channel several miles long from the river-mouths to deep water outside the bars, would cost many millions. Because westerly currents prevail across the river-mouths, the channel depth could probably be main- 257 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA tained by a single training wall, east of the channel, but even the cost of one wall would be prohibitive. The main improvements at the port of Georgetown which will be needed as an essential part of the transport program are: 1. Legislation to establish a future river front line, to which all rebuilding, extension or alteration schemes should be required to conform; this legislation is urgently needed. The line known as the "Park Line" might be suitable for the river front line. Legislation should also provide for regulation of building lines, the reservation of spaces for handling, storage, and access to streets and other essentials. The layout, situation and construction of most of the present day wharves, locally known as "stellings," and their ramps are uneconomic in operation and maintenance, as well as unsightly. 2. Warehouses should in future provide for separate transit and storage sheds. Warehouse owners complain that consignees unduly delay the removal of their goods, while consignees complain of high storage charges. This arises from the common use of the same warehouse as transit shed and storage warehouse. A transit shed is a place for the acceptance or delivery of freight, its checking, weighing, way-billing, and the for- malities required before it is shipped or after it has been landed. The efficiency of a transit shed is measured by the speed of the movement of goods through the shed; heavy demurrage charges must be levied for undue delays. A storage shed, on the other hand, serves the purpose of storing freight, either assembled by exporters before passing through the transit shed for shipment, or waiting to be collected by importers after passing through the transit shed on unloading. Such a shed serves its purpose most efficiently if its capacity is fully used and storage charges are kept low. It should be noted that adequate storage facilities in the port area are of great assistance to trade. Most traders receive their overseas supplies in bulk and sell the goods over long periods. Their own premises, more often than not, are unsuitable for storage of large quantities. Their costs can be reduced to the benefit of their customers, if storage space is available from which delivery can be taken at intervals. Similarly, cheap storage 258 PORTS AND INLAND SHIPPING

space in the port area is of great advantage to exporters who collect their merchandise from a wide area. 3. A permanent wharf is needed up-river from the Rice Marketing Board stelling, to meet the need for better ferry and transshipment services. Initially it might be anywhere from 300 to 900 feet long but it should conform to the waterfront regulations recommended under 1. In estimating costs, it is assumed that the excellent local hardwoods would be used in preference to extremely costly concrete quay walls. The advice of qualified consulting engineers would be.helpful in determining the final type of construction and the layout of roadways, railway sidings, crane tracks, transit sheds and warehouses. 4. In order to improve ferry service, one landing berth should be constructed at each of the quays at Georgetown and Vreed-en- Hoop, preferably parallel to the river front line for easy moor- ing under all current and weather conditions. The berth at Georgetown could be at the site of the wharf, recommended above, or at an independent site, possibly the existing one. Here also the advice of consulting engineers will be needed. The costs of the works at Georgetown under 3 and 4 are estimated at: New wharf, 300 to 900 feet long.... $300,000 to $900,000 Two ferry boat berths, 100 feet each ...... $200,000 5. The existing drydock at the Penal Settlement promontory on the Essequibo necessitates the carriage up-river of all equipment, materials, stores, and labor required for all ship repairs, and additional expenditures for subsistence and other allowances to the workers. The mission believes that this drydock should be abandoned at the earliest opportunity and left as an open dock. Private drydock facilities now available at George- town can, with some improvements and at little extra cost, cope with most of the repairs and periodic overhauls. The volume of shipping using the ports appears to be too small to warrant two separate drydocks. A possible solution may be the sale or transfer of the port equipment, plant and stores, from the Trans- port and Harbor Department to the private drydock owners. Steps should be taken to ensure that repairs and overhauls con- 259 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

form to standards of time, cost and workmanship at least equal to those prevailing at the public dock. 6. The port of New Amsterdam is now being equipped with a new wharf, up-river from the present ferry stelling, at a cost of $300,000, which is provided in the 1953 budget. In addition, two ferry boat berths will be required, one at New Amsterdam and one at Rosignol, to accommodate an improved ferry service, at a total cost of $200,000. The existing ferry stelling, expensive in maintenance because of its great length, could then be dismantled. II. Inland Shipping Coastwise and inland shipping is served by the government's Transport and Harbor Department on the following routes: 1. Georgetown-New Amsterdam, cargo, one or more services weekly 2. New Amsterdam-Paradise, Berbice R., weekly 3. Georgetown-Bartica, thrice weekly 4. Parika-Essequibo islands-Adventure, five days a week 5. Georgetown-Adventure, cargo, weekly 6. Georgetown-Pickersgill, Pomeroon R., fortnightly 7. Georgetown-Morawhanna, N.W. District, fortnightly The Transport and Harbor Department's steamer service also operates a ferry service across the Demerara river at Georgetown and across the Berbice river at New Amsterdam. All other shipping is managed by private owners. One company operates a regular service on the Demerara river between Georgetown and Wismar opposite Mackenzie. Navigable distances inland on the rivers vary greatly: Essequibo river, up-river to Bartica, 42 miles Demerara river, up-river to Mackenzie, 67 miles Berbice river, up-river to Eberoaboa, 110 miles Corentyne river, up-river to Orealla, 40 miles Pomeroon river, up-river to Pickersgill, 31 miles Waini river, up-river to Evan Wong Saw Mill, 130 miles Barima river, up-river to Aruka, 45 miles Numerous stretches in the interior, usually isolated between rapids, are navigable by very small craft. Inland water transport cannot be further developed, as the cost of construction of canals to bypass the 260 TABLE 59

TRANSPORT AND HARBOR FLEET Dead Net Gross Ship Age Weight Weight Weight Passengers Service 1. M. V. Lukanini ...... 39 125 98.76 179.29 456 N. Amsterdam ferry t tv 2. S.S. Queriman ...... 31 300 152.36 379.63 1,141 Demerara ferry 3. S.S. Tarpon ...... 24 240 173.50 412.06 678 Pomeroon, N.W. 4. M. V. Pomeroon ...... 17 166 120.53 286.93 706 Berbice River 5. M.V. Lady Northcote ...... 16 166 119.24 289.77 706 Bartica 6. M.V. Barima ...... 14 166 110.71 277.78 706 Stand-by 7. S.S. Lady Berbice ...... 8 375 112.16 394.10 323 Adventure cargo 8. S.S. Mararuni ...... 8 375 122.30 390.22 323 N. Amsterdam cargo 9. S.S. Oranje ...... old - 101.00 192.00 150 Parika-Adventure THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA rapids is prohibitive. The navigable river sections are charted and buoyed, and the channels adequately maintained; no additional work on them appears necessary. The Government Fleet. The fleet of the Transport and Harbor Department consists of the vessels listed in Table 59. The first two vessels in the list are obsolete, completely unsuitable for use as ferry boats, and most expensive in operation. It is proposed, therefore, that these vessels be replaced by proper double-end ferry boats, with landing bridges for vehicles and pedestrians, and cargo space. The ferry boats should be smaller and faster, and assure a service of greater frequency than the present vessels. Three ferry boats, identical in all respects will be necessary, one for service at Georgetown, one for the New Amsterdam serivice and the third for meeting peak demands and serving as a standby during the periods of ordinary service attention, overhaul, and drydocking of the other vessels. The total cost of the three vessels need not exceed $1 million. With such new ferries, the Transport and Harbor Department will be able to separate the ferry service from the coastal and river service, and provide a more efficient administration of the former. The transshipment of goods carried along coastal roads and railways and across the estuaries would be greatly aided by the introduction of standard types of containers and platforms of varying sizes and capacities to be used by all carriers. The equipment might be placed in a pool administered by the Transport and Harbor Depart- ment, on which each carrier could draw. A pilot scheme could be carried out with an outlay of $100,000 to $200,000. If it is successful and expansion seems desirable, additional equipment could be financed from increased revenues and economies in operation. River Bridges. A proposed solution to the estuary transport problem is the construction of bridges across the Demerara at George- town and across the Berbice at New Amsterdam. The mission does not believe that construction of such bridges can be justified either now, or in the foreseeable future, on economic, technical, or financial grounds. The bridges would serve a hinterland which cannot at present produce sufficient traffic to warrant either the large initial expense of construction or the heavy annual expenditures required thereafter for operation and maintenance. On the basis of volume 262 PORTS AND INLAND SHIPPING of traffic now entering and leaving Georgetown and New Amsterdam from the district on the same side of the river, traffic on the bridges would probably not exceed 1,500 tons a day. Moreover, to provide for ocean-going shipping, an opening span at Georgetown would be necessary. This would increase the building costs and add substantially to the permament operating cost. At present day prices, the cost of building the Demerara bridge is estimated at not less than $10 million and the cost of the Berbice bridge at upwards of $14 million. The recurrent annual charges for interest and operations would be at least $500,000 and $700,000 respectively, far in excess of any possible revenue from tolls. Shipping Operations. The Transport and Harbor Department's steamship service operates at a consistent loss, due almost entirely to the poor condition of the fleet. The fleet includes too many over-aged vessels acquired during the war and postwar years when only secondhand vessels were obtainable. They are unsuitable for the service they have to perform, expensive to operate and maintain and over- manned. Two new steamers are already on order from the Crown Agents in London. Their arrival and the introduction of the three new ferry boats, recommended above, should greatly improve the present situation. The two new steamers will be of the same class as the vessels listed as Nos. 4, 5 and 6 in Table 59 and it may be reasonably expected that, with the additional vessels, the operating deficits will be greatly reduced. It is recommended that the three or four oldest ships be withdrawn from service and sold or scrapped. Every effort should then be made by the Department to eliminate the deficit altogether, and there appears to be no reason why this cannot be achieved within the five-year program period.

263 CHAPTER 17

The Railways

The East Coast Railway, 60.5 miles long and with a 4' 81Y2" gauge, and the West Coast Railway, 18.5 miles long and of 3' 6" gauge, were begun in 1848 by the Demerara Railway Company, which operated them until they were taken over by the Transport and Harbor Depart- ment in 1919. Of light construction, and poorly maintained throughout their existence, they have become an expensive unit in British Guiana's transport system. The obsolescent equipment has caused growing operating deficits, excessive costs of maintenance, and unduly high expenditures for administration and staff. The lines carry substantial traffic, mostly passenger, some of it in daily peak periods. It is clear that if funds for renewals and modernization had been available when the lines were taken over in 1919, the railways could long since have been made self-supporting. In this respect the system is in precisely the same position as the steamer services already discussed. Competition between the two services has not been the cause of the present condition of the railways, nor has competition from road transport had serious adverse effects. The present situation has developed simply through continued financial stringency. A sequence of difficulties during the twenties, the world depression, and the war and its aftermath led unavoidably to neglect in upkeep and maintenance of services. Until 1951 the situation steadily worsened. Since then a limited program of rehabilitation has had some small effect; the economies recommended by a Ways and Means Committee of the Legislative Council in May 1952 are in operation, and a new management has succeeded in halting the rising deficit. Drastic measures, however, are still required to remedy the situation. There are two possible ways to achieve solvency. One is to bring the railway completely up to efficient standards, the other to abandon the railway after alternative road transport facilities have been pro- 264 THE RAILWAYS vided. Both methods have been studied by the mission and the alternative costs compared. Rail or Road Problem. Although short distance is, as a rule, more economical by road than by rail, there are often notable exceptions. It is clear that the roads of British Guiana in their present state are not in condition to carry the additional traffic now carried by the railways, nor are there sufficient vehicles available. Good road construction materials are not at present available, road costs are high, and so is the present cost of maintenance. Several years therefore would have to elapse before there could be a road construction program to replace the railways. If such a changeover should prove advisable, there would have to be a transition period of several years during which the railways must be kept in running order, and protected against too severe road competition. This period, estimated at from five to 15 years, is in fact a continuation of a transition which has been already going on several decades, since the idea that a short railway must per se sooner or later become obsolete appears to have taken root long ago in the colony. The time has now come to assess the problem in a realistic way by calculating, for each alternative, the costs of capital investment, and the recurrent annual charges for administration, operation and maintenance to be borne by the government and by private operators and users.

I. The Cost of Railway Rehabilitation

Track. Both railways have a single-track line, with crossing loops at the stations and further crossing facilities at intermediate plantation sidings. On the East Coast line the distance between crossing points varies considerably, and this reduces the capacity. One or two additional crossing loops will be needed. The West Coast line does not require additional crossing facilities. Increased crossing facilities for the East Coast line will cost $150,000. The track consists of 70 lb. yard rails on hardwood sleepers. This is unusually heavy for the train loads, which are limited to the maximum 10 tons per axle imposed by the strength of the bridges. A heavy track was required because the lines have no ballast and are on a somewhat soft formation. Such construction was sensible when good ballast was unobtainable, hardwood sleepers of excellent quality 265 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA were readily available and rails and fastenings were relatively cheap. In spite of its age, there is still a long life in the track, and a sufficient stock of secondhand material from Bermuda is still on site for relaying purposes. After a century of traffic, the formation is now stable. Points and crossings will, however, soon be required. As stone ballast is now procurable, it is recommended that a light ballast bed of not more than 6" depth be laid down on the East Coast main line, omitting the branch lines. This will reduce maintenance and bring the growth of weeds under better control, and thus help rid the track of stray cattle which are now a menance to safe running. Relaying of track, points and crossings is estimated to cost: East Coast line ...... $ 350,000 West Coast line ...... $ 117,000 Ballast East Coast line ...... $ 700,000 $1,167,000 Bridges. On the East Coast line there are over 200 bridges and culverts, on the West Coast line over 70. On the whole, they are in good condition but a small number need attention to make up for arrears in maintenance. Repairs to bridges and culverts are estimated at: East Coast line ...... $267,000 West Coast line ...... $152,000 $419,000 Buildings. All buildings are made of local timber and, if kept in repair and given a coat of paint at regular intervals, are almost indestructible. Small improvements in amenities and some improvements to platforms are needed. The estimated cost of repairs to buildings is: East Coast line ...... $50,000 West Coast line ...... $24,800 $74,800 Rolling Stock. Rolling stock is the critical factor for the efficiency of the railways. At present the stock consists of: 17 steam locomotives 2 diesel electric locomotives 7 petrol tractors 4 rail cars 266 THE RAILWAYS

55 passenger carriages (seating capacity 2,951) 87 vans and other coaching vehicles 344 goods wagons (carrying capacity 2,463 tons) 8 service vehicles (carrying capacity 76 tons) Of these, the following units are in rea.sonable working condition: 4 steam locomotives 4 rail cars 7 petrol rail tractors, powered only for shunting about 30 bogie carriages (seating 1,500) 9 vans about 30 goods wagons (capacity 500 tons) a small number of tank and service vehicles All the rest of the stock has only scrap value and, if the railways are retained, their repair and maintenance costs will, in the near future, become prohibitive. A preliminary project, prepared by the General Manager of the Transport Department, estimates the needs for rolling stock for the two lines within the next ten years, under normal conditions of increasing population and general economic progress, as follows: East Coast line, 4' 81/2" gauge 11 diesel electric locomotives ...... $ 861,000 7 diesel rail cars and 6 trailers.. 540,000 35 bogie passenger coaches ...... 1,015,000 60 bogie goods wagons, 1,200 tons.. 720,000 100 four-wheel goods wagons, 800 tons ...... 560,000 21 vans and other special wagons.... 168,000 Total ...... $3,864,000 West Coast line, 3' 6" gauge 3 diesel locomotives ...... $189,000 5 passenger coaches ...... 145,000 21 vans and wagons ...... 134,000 Total ...... $468,000 These estimates of the Department are based on an expected increase of 25% in passenger traffic and livestock and 50%o in parcels, but no increase in goods traffic, which would probably be diverted to the steamer services. These assumptions appear sound enough, but 267 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA the mission suggests that for the five years immediately ahead, it would be wise to schedule only such portion of this investment as will, together with improved operating methods, assure the efficient handling of the existing volume of traffic plus a normal annual increase. Careful study indicates that on this basis, the East Coast line program could be carried out as follows: East Coast line, new rolling stock: 5 diesel electric locomotives ...... $ 400,000 3 passenger rail cars and trailers.. 250,000 15 bogie passenger coaches ...... 430,000 400 tons capacity in bogie wagons.. 240,000 600 tons capacity in 4-wheel wagons 420,000 8 vans and other vehicles ...... 60,000

Total ...... $1,800,000 The mission does not recommend any abridgement in the program for the West Coast line. The rolling stock program for the two lines would thus total an estimated $2,268,000. Workshops. In the present layout at Georgetown, the goods sidings, sheds, loading wharves, workshops and general stores are crowded together in a confined space, intersected by public roadways and commercial premises. The operation is cumbersome, there is an excessive staff and heavy operating and maintenance costs. The management sees the solution in the removal of the locomotive, carriage and wagon workshops to railway land available at Kitty. This suggestion appears feasible and has the further advantages of simplifying the planning of the railway connection with the new wharf recommended in Chapter 16. A relief from the congestion on the present site would result in appreciable savings in operating costs. The removal of the workshops, their re-erection at Kitty, and the inclusion of a permanent way workshop, sidings, staff quarters, office accommodation and the remodelling of the track layout of the present site, are estimated to cost $300,000. Signalling. A project for absolute block working, electric train staff, signal lights and elementary interlocking to improve safety has 268 THE RAILWAYS

been worked out by the management. The installation would cost $64,400 on the West Coast line, and approximately $20,000 on the East Coast line. Although this is a well-conceived project, its execution can safely be deferred until the volume of traffic increases appreciably as a result of modernized methods. The passenger service on both lines is operated almost entirely in daylight, goods trains can be scheduled to run after nightfall and the traffic is so light that not more than one train need run regularly at any given time during the hours of darkness. The speed is moderate, the braking power of the new locomotives will be high, the lines are level and visibility is good. The present system of running trains, on the telephone, staff and ticket system, is fully understood and observed by station staff and train crews. Operating Methods. The West Coast line has the advantage of traffic fairly evenly spread over the hours of daylight. The total length of the line, just under 20 miles, makes it feasible for one train to make at least three round trips in daylight. Two sets of trains can therefore assure a service of six trains in each direction, with only one crossing at an intermediate loop. This is 50% above the present load, but even so it leaves numerous paths free for conditional goods trains or convoys to sidings. The operation of this line can be maintained like that of a light railway or tramway with a small station, train and permanent way staff. The line carries a considerable amount of traffic, and is now well on the way towards balancing its expenditures and revenues. The general situation justifies the post- ponement of ballasting, signaling and increased crossing facilities until complete solvency has been reached. The East Coast line has its own special operating features. Its passenger traffic is mostly concentrated in the early morning hours when people move into Georgetown and in the afternoon when they move out. Five trains arrive at the terminus between 6:45 a.m. and just after 11 a.m. The next train does not arrive until nearly 6 p.m., and is followed by two other trains within slightly more than an hour. Similarly only two trains leave Georgetown in the morning, and six in the afternoon and evening. Only two trains travel the entire distance of the line each way. The peak traffic consists of workmen, schoolchildren and marketing villagers. This pattern of traffic has 269 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA the advantage of increasing the capacity of the single lines, reducing the number of crossings, and limiting the chance of delay. On the other hand, it necessitates an early start from country stations, and trains must either run empty to those stations or be stationed there overnight. There are four intermediate stations between Georgetown and Rosignol in addition to the two terminals where trains stand overnight. The procedure is costly; locomotives must be kept under steam, crews are on duty overnight without producing revenue, accommodation must be provided for them, while arrangements must be made for cleaning fires, watering locomotives, and sweeping carriages. The introduction of diesel traction would eliminate much of this expense; diesel locomotives need little attention, consume no fuel or water when standing, and train crews could have their home at the station where trains start and end their daily runs. It is recommended that a close study be made of the possibility of concentrating the passenger train staff at one intermediate station- Mahaica or Mahaicony seems indicated-in order to achieve savings in time and costs in the traffic and locomotive running departments. A preliminary consideration of this question shows that the present timetable of passenger trains in each direction between Georgetown and Rosignol, even with the addition of one extra mixed train for local goods and third class passengers, could be assured by a daily roster of four diesel engines and eight crews, and with a fifth engine and two crews resting or standing by. The investment program outlined above would allow four steam locomotives, three of which would be kept on duty for shunting conditional goods trains, with three diesel railcar sets to alternate with the main line diesel trains and serve special traffic demands, excursions and the like. Operating Results. Modernization of the equipment should substantially reduce both operating and repair and maintenance costs. This in turn should make possible savings in personnel expenditures. Reductions in staff always present problems. The fact must be faced, however, that unless savings can be effected in operating costs the railway cannot efficiently serve the economy and may even be forced to cease operations. It is suggested, however, that to avoid the hardship that a sudden cut in personnel would entail, the size of the staff 270 TABLE 60

ESTIMATED RAILWAY REVENUES 1952-1958 East Coast Line (in dollars) 1952 1954 1955 1956 1957 1958 Passengers ...... 390,700 410,000 420,000 430,000 440,000 450,000 Parcels 101,700 110,000 118,000 126,000 134,000 142,000 Mails .4,000 4,000 4,000 4,000 4,000 4,000 , Goods .279,700 290,000 300,000 310,000 320,000 330,000 t Mis .35,000 35,000 35,000 35,000 35,000 35,000 ;

Total East Coast.. 811,100 849,000 877,000 905,000 933,000 961,000 West Coast Line (in doUars) cl Passengers 176,000 186,000 196,000 206,000 216,000 226,000 Parcels 11,500 13,000 14,500 16,000 17,500 19,000 Mails .1,600 1,600 1,600 1,600 1,600 1,600 Goods .53,100 58,000 63,000 68,000 73,000 78,000 Misc .1,600 1,400 1,400 1,400 1,400 1,400

Total West Coast 243,800 260,000 276,500 293,000 309,500 326,000

Railway Total 1,054,900 1,109,000 1,153,500 1,198,000 1,242,500 1,287,000 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA be decreased gradually, mainly by not filling vacancies as they normally occur or, wherever possible, filling them by persons whose posts are to be abolished. Since on the average between 3 and 4% of the staff leave the service each year because of death, retirement, resignation and other factors, a reduction of from 15 to 20% might thus be achieved over a five-year period without real hardship. Revenue. On the basis of the 1952 figures and the trend of development in the preceding years and allowing only a very conservative increase in revenues as a result of improved services, the mission estimates that at the end of the five-year period 1953-58 total railway revenues should show an increase of approximately $222,000 over the 1952 figure of $1,054,000. Table 60 shows how this figure is computed. Expenditure. On the basis of the revised investment program recommended earlier and the anticipated improvement of operating methods, accompanied by a gradual reduction in staff, the mission estimates that the annual deficit of the railways can be brought down from $566,900 in 1952 to $103,000 in 1958, and that further subsidies will probably not be necessary beyond 1958 or 1959. This estimate includes provision for interest on a capital expenditure of approximately $4 million to be charged to the railroads expenditure account. It does not include any amount for the annuity and other obligations assumed by the government when it took over the railroads in 1919. These commitments, most of them unconnected with the railway's present status and not affected by a decision to attain or abandon the railways, should probably be borne directly by the Treasury. An annual sum of $120,000 for renewals is included in the estimate of operating expenditures. At one time the railways maintained a renewals fund but in 1930 the contributions were discontinued and in, 1947 the proceeds realized from the investment of the fund were absorbed in the general revenue of the colony. It would be desirable to reinstate such a fund for renewals, especially for those items of more limited life. The sum suggested represents an annual contribution of 3% of the total capital investment of $4 million for rolling stock, workshops, plant and tools, track and structures and rehabilitation of assisting stock and plant. Assuming it is decided to retain the railways, the capital cost to the 272 THE RAILWAYS government to put them in efficient operating condition is estimated as follows: East Coast Line West Coast Line Crossing loops ...... $ 150,000 Relaying ...... 350,000 $117,000 Ballasting ...... 700,000 Bridges ...... 267,000 152,000 Buildings ...... 50,000 24,800 Rolling stock ...... 1,800,000 468,000 Total ...... $3,317,000 $761,800 Total both railways ...... 4,078,800 Central workshops ...... 300,000 Total capital expenditure .... $4,378,800

On the operating side, the expected burden to the government of maintaining the railroads is shown in Table 61. Rates and Fares. The present fare and rate structure of the railways for passenger and goods traffic is reasonable for existing operating conditions. However, the introduction of new equipment, especially uniform containers as recommended in the previous chapter and a larger proportion of bogie rolling stock of higher capacity, will bring a need for a thorough study and revision of the tariff structure. A decision to retain the railways on a permanent basis will make it even more important to undertake the study promptly. In particular, the problem of "less than wagon load" consignments should be studied, as this will have considerable influence on the proportion of high capacity bogie wagons to low capacity four-wheel wagons to be provided in the railway investment program.

II. The Cost of Replacing the Railways by Roads The central fact that emerges from a consideration of the problem of roads versus railways is that it is not one of simply adding to and improving the existing road system at the expense of rehabilitating the railways, but of building whole new lengths of road in addition to undertaking major improvements to those already built. The present roads do not have the capacity to handle the additional traffic, with its daily and seasonal peaks, that is now carried by the railways. Nor 273 TABLE 61

ESTIMATED RAILWAY OPERATING EXPENDITURES 1952-1958 A. East Coast Line 0 (in dollars) 1952 1954 1955 1956 1957 1958 Way and Works ...... 190,800 185,000 180,000 170,000 160,000 150,000 Rolling Stock ...... 144,400 140,000 130,000 120,000 105,000 90,000 > Loco. running ...... 301,200 280,000 260,000 240,000 220,000 200,000 : Traffic ...... 380,800 360,000 330,000 300,000 275,000 250,000 E General ...... 94,800 94,000 93,000 92,000 91,000 90,000 W Compensations ...... 3,600 3,000 3,000 3,000 3,000 3,000 C Taxes ...... 20,500 20,000 20,000 20,000 20,000 20,000 ¢ Cost of Living ...... 138,300 128,000 114,000 105,000 86,000 77,000 :

Total East Coast ...... 1,274,400 1,210,000 1,130,000 1,050,000 960,000 890,000 B. West Coast Line (in dollars) 1952 1954 1955 1956 1957 1958 Way and Works ...... 62,100 62,000 59,000 56,000 53,000 50,000 Rolling Stock ...... 45,700 45,000 43,000 40,000 38,000 35,000 Loco. running ...... 69,100 65,000 60,000 55,000 50,000 45,000 Traffic ...... 101,300 100,000 94,000 88,000 82,000 75,000 General ...... 24,900 24,500 24,000 24,000 24,000 24,000 Compensations ...... 1,100 1,000 1,000 1,000 1,000 1,000 ' Cost of Living ...... 43,200 42,500 40,000 37,000 34,000 30,000 t

Total West Coast ...... 347,400 340,000 321,000 301,000 282,000 260,000 2

Interest 24,000 48,000 72,000 96,000 120,000 > Renewals 120,000 120,000 120,000 120,000 120,000 C'

Total ...... 1,621,800 1,694,000 1,619,000 1,543,000 1,458,000 1,380,000 Total of Revenues ...... 1,054,900 1,109,000 1,153,500 1,198,000 1,242,000 1,287,000

Deficit ...... 566,900 585,000 465,500 345,000 216,000 93,000 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA for reasons of location and other factors, will it suffice merely to increase the capacity of the present roads. In recognition of this fact, it has been suggested that the railway alignments* be used for new roads. There are both technical and economic objections to this. In the first place, the railway embankments are not more than seven to eight feet wide. One hundred years of railway traffic has packed them solid. To be used for roads, the embankments would have to be widened and it would take many years before they became evenly settled. During those years, maintenance would be both difficult and costly. Moreover, nearly 300 bridges and culverts would have to be widened to carry the full width of the road and all steel spans would have to be replaced. The total cost would be prohibitive. Finally, to build the roads, the railroads would have to be closed down even if the conversion were planned in stages. During the process of building, there would be no satisfactory means of coastal transport. The existing roads can be widened without great difficulty. Only one section of the East Coast road, from Georgetown to east of Kitty presents problems, a section which would have to carry the heaviest volume of additional traffic. To carry the increased traffic, the roads would have to be built to higher standards than at present. Thus to take care of regular bus service and lorry and motor car travel as well as bicycles, pedestrians and some livestock on foot, most of the new mileage would have to be built to Class I specifications (see Chapter 18). On this basis, replacement of the railways by roads would require the following road construction on the East Coast: Georgetown-Kitty, 5 miles, Class I, 25' carriage and bicycle way, pedestrian footpaths, $200,000 per mile ...... $1,000,000 Kitty-Abary River, 39 miles, Class I, 24' carriage and bicycle way, $100,000 per mile ...... 3,900,000 Abary River-Blairmont, 25 miles, 18' carriage way, lighter structure, $70,000 per mile ...... 1,750,000 Bridges, culverts, road crossings, first five miles ...... 300,000 Deviations, bridges and culverts in the remainder1 ...... 1,700,000 Feeder roads to replace railway sidings, 20 miles, $20,000 per mile ...... 400,000 Total for the East Coast ...... $9,050,000

' Estimate of Public Works Department. 276 THE RAILWAYS

On the West Coast, replacement would require: Vreed-en-Hoop-Parika, 20 miles, 24' carriage and bicycle way, $100,000 per mile ...... $ 2,000,000 Deviations, bridges, drainage' ...... 520,000 Feeder roads to replace railway sidings, five miles, $20,000 100,000

Total for the West Coast ...... $ 2,620,000 Total for the East Coast ...... 9,050,000

Total Cost ...... $11,670,000

The total cost of roads to replace the railway system is thus estimated to amount to $11,670,000. Of this sum, however, approximately $6,990,000 will have to be spent, even if the railways are retained, for improvement of the existing roads-$5,690,000 on the East Coast road (including the cost of future deviations) and $1,300,000 on the West Coast road. This leaves a total of $4,680,000 ($3,360,000 for the East Coast, $1,320,000 for the West Coast) as the additional construction cost to replace the railways. In addition to construction costs, maintenance must also be considered. The additional cost for increased maintenance of the larger road surface is estimated at 13/49o of the construction cost. This would mean an annual cost for maintenance of the East Coast road of $58,000 a year and for the West Coast road of $23,100 a year, or a total of $81,100 per year. Maintenance charges on existing village roads would, of course, be in addition to this sum. Operating Equipment. The cost of the equipment needed for adequate road transport in the event the railways are scrapped is calculated on the assumption that most of the goods traffic now carried by the railways can and will be taken over by the steamer services and by private, industrial and commercial firms using their own vehicles, leaving only a small portion to be handled by private road haulers. A number of lorries will need to be imported but since private enterprise can probably supply the capital and the cost would, in any event, be small, this item has been omitted from the cost calculation. The situation is different with regard to passenger traffic. A well-organized passenger road transport system would be essential

'Estimate of Public Works Department. 277 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA if the railways ceased operations. At present there is little private experience in the colony with passenger transport. It might be gained within the five-year transition period, but meanwhile the road services would probably have to be operated at least initially by the Transport and Harbor Department. Passenger traffic on the East Coast line during the second half of 1952 totaled 14.5 million miles, or an estimated 29 million for a 12-months period. With normal development it is estimated that this figure should rise to 33.4 million in 1958. The number of buses necessary to carry equivalent traffic can be roughly estimated. The present East Coast bus schedules operated by private owners cover an annual mileage of 33,300 per bus running, and the local bus service in Georgetown, with 80%o of the buses in service, shows an annual mileage per bus in service of 24,000. On this basis the East Coast bus schedules would average 26,600 miles per year per bus. A fully occupied bus during all of its trips could therefore carry a traffic of 26,600 X 40 = 1,064,000 passenger miles. But not all buses are full, and no bus is full over the whole distance of its run. In practice only from one half to two thirds of capacity is used. Using the higher ratio each bus could be expected to carry 700,000 passenger miles. On this rather optimistic basis, 48 buses would be required to replace the East Coast line. The West Coast line during the second half of 1952 carried a total of five million passenger miles, which is expected to rise to 12.9 million in a full year in 1958. Calculated on the same basis, the number of buses required to handle this volume would be 18. The capital cost of new vehicles for the road services would thus run approximately as follows: East Coast, 48 buses at $18,500 = $ 880,000 West Coast, 18 buses at $18,500 = 333,000 Total . $1,213,000 Buildings. The present administration buildings of the Transport and Harbor Department would have to remain in service for the steamer, harbor and pilotage and interior road transport services. The railway sections would become available for the new East and West Coast road transport services. Some of the station buildings could be used as local offices for the road transport services, but 278 THE RAILWAYS most of them would become superfluous. They cannot be used for other purposes and their cost of removal would hardly be covered by their salvage value. Where they can be sold, the proceeds might be sufficient to pay for shelters for passengers at village bus stops. Separate garages and workshops would be required for the East and West Coast road services. Part, but not all, of the present railway workshops could be used, as these workshops also serve the steamer and harbor services. The same applies to the stores buildings and goods sheds. The cost of adapting existing buildings would certainly exceed any proceeds which might be obtained from any sale of redundant buildings. The net cost is difficult to assess precisely but, as it cannot be high, it may safely be left out of the calculations. Plants and Tools. Road transport garages and workshops would require new equipment but much of the cost might be met from the sale of surplus machine tools of the railway shops. Here again the net costs, one way or the other, are not likely to be large enough to affect the calculations. Railway Track and Rolling Stock. This would have to be scrapped, as its condition, even after rehabilitation with certain materials and stock taken over from the Bermuda Railway, is not such that any parts can be economically transferred to any other railway. The scrap value of an abandoned railway today may be put at £3 per ton for track and bridges and £4 per ton for rolling stock. The scrap value of both railways would amount to approximately:

Track and bridges 15,000 X £3 = £45,000 Rolling Stock 3,500 X £4 = £14,000 Total .. £59,000 = $300,000

Redundant Railway Staff. Some of the headquarters staff, all the way and works, almost all the mechanical and locomotive, and a large part of traffic staff of the railways would become redundant. Assuming that one year's salary was paid, $660,000 would be required as indemnity. Pensions, annuity rights and other compensa- tion may be estimated at another 50%o, which would bring the total to approximately $1,000,000, as the capital sum to be provided to cover staff redundancy. 279 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Operating Results. Operating expenditures, estimated on the basis of local costs of equipment, fuel, wages, etc. would be as follows: East Coast, 48 buses, covering 1,276,800 miles per year.... $880,000 West Coast, 18 buses, covering 478,800 miles per year.... $330,000 East Coast West Coast 1. Fixed charges: Interest 3% on cost ...... $ 26,400 $ 10,000 Depreciation 15% on cost ...... 132,000 50,000 Insurance at $240 per bus ...... 11,500 4,300 Offices and garages $1,000 per bus .... 48,000 18,000 Drivers and conductors $125 per 1,000 miles ...... 160,000 60,000 2. Variable charges: Fuel and lubricants 9.5 cents per mile 120,000 45,000 Maintenance and tires 7 cents per mile 90,000 33,000 Total operating costs ...... $587,900 $220,300

The service, worked out on the assumption that estimated traffic in 1958 would produce a revenue equal to that of the railways, would yield in 1958: Passenger revenue ...... $450,000 $226,000 It would thus appear that, unless the fares were appreciably raised when the bus services started running, only the West Coast bus service could operate at a profit, and a negligible one at that. Cost Summnary. The total cost to the government (aside from increased costs of vehicles to private owners) of abandoning the railways and replacing them by trunk roads and road transport services can be estimated as follows: East Coast West Coast 1. Capital Costs: Roads ...... $3,360,000 $1,320,000 Buses ...... 880,000 333,000 Terminal Salaries, etc ...... 800,000 200,000 Total ...... $5,040,000 $1,853,000

Total East and West ...... $6,893,000 Less scrap value railways 300,000 Total capital expenditure $6,593,000 280 THE RAILWAYS

2. Recurrent Costs: 1954-1958 (estimated railway deficits) 1954 ...... $500,000 1955 ...... $500,000 1956 ...... $500,000 1957 ...... $400,000 1958 ...... $300,000

1958 and after (increased costs of road maintenance) East Coast ...... $ 58,800 West Coast ..... 23,100

Total .... $ 81,9001

The comparative financial aspects may be summarized as follows: Railways Retained Railways Abandoned Capital Investment East Coast ...... $3,317,000 $5,040,000 West Coast ...... 761,000 1,853,000

Total ...... $4,378,0002 $6,593,0003

Railways Retained Railways Abandoned Annual Deficits 1954 ...... $ 684,500 $ 500,000 1955 ...... 457,500 500,000 1956 ...... 345,000 500,000 1957 ...... 216,000 400,000 1958 ...... 103,000 300,000

Total ...... $1,806,000 $2,200,000 Grand Total ...... $6,184,000 $8,793,000 'This cost may be partly offset by additional revenue from licenses and the petrol tax. 'Including $300,000 for combined workshops. 'Including $300,000 credited for scrap value.

After 1958, even should the railways be abandoned, there would remain an annual cost to the government of up to $72,000 for the railway perpetual stock. 281 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Conclusion On the basis of the factors presented, the mission recommends that the railways be retained, and that the government undertake a program for their rehabilitation and modernization, as a part of the recommended five-year development program.

282 CHAPTER 18 Roads

I. Main Roads

A greatly improved road transport system is imperative for further economic development of British Guiana. Poorly constructed and expensive to maintain, the existing road system is inadequate to meet present-day traffic needs, let alone the increased volume that can be expected to result from further development. In the coastal area, the present trunk road system can serve as the basis for a greatly improved and extended network that will serve the needs of the colony in that area for the foreseeable future. In the interior, the need is less pressing; some additional funds are required for maintenance and construction of feeder roads, for improvement of existing roads, and for surveys of roads to be built after 1958. The road building program recommended by the mission for the coastal area is large.. In all, it calls for the rebuilding or extension of 268 miles of roads at a cost of nearly $12 million. A program of this size will have to be spread over a number of years, certainly more than five. Nonetheless a very substantial mileage can be built within five years and it can in all probability be divided to cover more than one major project at a time. In considering a road program several factors are of importance: 1. Because of the condition of the roads traffic is as yet light; a special feature, however, is the intense bicycle traffic, 2. Road maintenance needs are determined more by climatic than traffic conditions. Proper drainage, especially side drainage, is of as much importance as a well maintained surface, 3. The surface material used at present is mainly burnt earth, available everywhere and easily produced. It is not a good material, it wears fast and produces dust in dry weather and holes and ruts in wet spells, 283 THE ECONOMIC DEVELOPMENT. OF BRITISH GUIANA

4. There is, contrary to many earlier reports, an abundance of excellent stone to meet all roadbuilding and other demands, but methods of quarrying and handling it have so far been primitive and costly. Construction and Cost. Modern road construction designs and methods have been used on Georgetown streets since 1930 and a completely new road was recently built on existing foundations on the Corentyne Coast. Additional experimental lengths have been built at various locfalities. The costs of these works have been analyzed; the results provide the basis for estimates of costs .of various classes of roads to be built under the program worked out below. In addition to the factors already enumerated the following technical considerations have been taken into account in the calculations. The subsoil is almost everywhere soft and porous and it is, therefore, all important to provide a road base which is homogeneous in structure, and of sufficient width and thickness to spread the load evenly over the formation. Burnt earth alone cannot provide such a base, since this material is itself too soft, porous and brittle. It can, however, provide a good base, if properly leveled and rolled, between the formation and a proper foundation of hard broken stone. Without a solid foundation a road surface made of wear resisting material will not of itself prevent uneven settlement and sinking. The quality of the soil makes it equally important to construct wide shoulders of earth along both sides of the metaled surface. A width of at least four feet on either side is needed and, where possible, six feet. The estimated schedule of costs includes earthwork for shoulders and side drains, camber and cant, and the widening of small bridges and culverts, but does not include any major bridge work or deviations. Where deviations are needed, it is strongly recommended that the earthworks be left to settle, after completion, for at least one full year before the road base and surface are laid. The cost estimates assume that cheaper stone will be provided by improved quarry and crushing procedures. Organization of an efficient stone quarry and crushing with modern plants is a prerequisite for a sound program. There should be no transport of boulders to be crushed elsewhere; crushed stone should be supplied direct from 284 ROADS the quarry. The mission believes that the first step in the road program should be the opening of a stone quarry and the installation of a crushing plant on an easily accessible site, perhaps on the right bank of the Essequibo river below the point where the Makouria river joins it. Allowing for plant depreciation, it is estimated that the cost of producing crushed stone on the quarry site would be about $3 per ton, up to $4 below the present price. Since as much as 4,000 to 5,000 tons of crushed stone are used per mile of road of the types scheduled, a saving of up to $16,000 to $20,000 per mile would be realized. TABLE 62

ESTIMATED COSTS OF ROAD CONSTRUCTION OF VARIOUS CLASSES Surface F6undation Carpet Cost per Class Width Thickness Thickness Type Mile 1 24' 12" 31/2f asphalt $100,000 2 22' 12" 3'/2", bitumen and 90,000 similar 3 18' 12" 3'/2" " 70,000 4 18' 9" 31/2" " 58,000 5 18' 6" 3 " " 48,000 6 12' 9" 31/2" " 40,000 7 12' 6" 3 " " 32,000 8 10' 6" 3 " " 25,000 9 10' 6" 31/2" water bound 20,000

The Proposed System of Trunk Roads. The trunk road system proposed as part of the development program consists of the following roads, scheduled in tentative order of priority for rebuilding, on the basis of the heaviest areas of traffic and of the government's preliminary program. Except for certain realignments in the Georgetown-Atkinson road, for which provision has already been made in current projects and budgets, it is recommended that deviations, however desirable in themselves, be deferred to a later period. The traffic on the roads is still light, the distances are short and a good surface is of primary importance; deviations are expensive and, because they must remain 285 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA unsurfaced for one or two seasons, would delay completion. It would probably be advisable to acquire the necessary land in advance, but to leave it under cultivation until the construction of the deviation is to begin.

TABLE 63

PROPOSED TRUNK ROAD SYSTEM Average Cost Road Miles Class per Mile Total Cost (in thousand dollars) 1. Georgetown-Atkinson ...... 22 2/3 80 $1,760,000 2. Georgetown-Blairmont ...... 66 2/3/6 70 4,620,000 3. Aurora-Charity ...... 38 6/7/8' 32 1,216,000 4. Vreed-en-Hoop-Maripa ...... 28 4 58 1,624,000 5. Vreed-en-Hoop-Vreedenstein .. 15 7 32 480,000 6. New Amsterdam-Juliansburg .... 17 9 20 340,000 7. Leguan and Wakenaamn islands.. 27 9 20 540,000 8. Branch roads of road 2 ...... 19 9 20 380,000 9. New Amsterdam-New Forest, and to Anna Clementia ...... 16 9 20 320,000 10. Other short branch roads . 20 9 20 400,000

Closely connected with the construction of the main road from Georgetown to Atkinson is an access road to Georgetown. The draft scheme for the greater Georgetown area foresees a main arterial thoroughfare which will link the Atkinson road from Meadow Bank Village, via Hunter and Russell Streets, to the present Camp Street in the center of the town. It is recommended that this scheme be carried out as a logical sequence to the establishment of a trunk road between Georgetown and Atkinson. In the proposed development program, a sum of $100,000 is set aside for the preparatory work on this project to be completed shortly after 1958. The total amount recommended for roads also includes a capital expenditure of $500,000 for the quarry and crushing plant. This should provide a plant that can produce 200 tons of crushed stone per day, or 60,000 tons per year. Although this would suffice for only one third of the full road building program, private quarrying can 286 ROADS

probably provide another third. If necessary, the original capacity of the public plant can be expanded after the building program gets under way. The construction of each project should be timed in such a way that plant and equipment are in continuous use with only short periods for minor overhauls betwveen projects. For example, by the time the superstructure of one road nears completion, the formation of a second road should be finished. The Public Works Department already possesses equipment and plants to carry out much of the program. Rather than adding plant and personnel for which the PWD will later have no use, consideration should be given to the allocation of important sections of road construction to private contractors who will use their own plant and equipment.

II. Interior and Feeder Roads

Bartica-Potaro Road with Branches to Issano and Tumatumari. At present there is almost no habitation along these roads. The entire population outside the terminal settlements is less than 100 persons, the majority of them road workers. Less than 10 tons of goods pass per day in each direction; there is no intermediate traffic to tap, and only a remote future prospect of developing such traffic. Road improvement itself would not produce additional traffic except an occasional car or lorry between the termini. For the small amount of existing traffic, all that is required is the maintenance of a tolerably passable condition, such as now exists over considerable lengths. It would be advisable, however, to give much more attention to drainage than has hitherto been possible. The road ought not itself act as a drain, and clearance of side drains is essential. The worst of the fords through jungle streams should be replaced by locally built rough timber bridges. Sun and wind should be admitted by clearing the growths on either side of the road to a width of at least 12 feet. First. attention should be given to the section stretching 20 miles out of Issano, which is in the worst state of all. The maintenance of the entire Potaro road system of approximately 170 miles now costs around $100,000 per annum. In 1952 switching and clearing accounted for about 5 % of these costs, grading and drainage less than 1/2 % and upkeep of bridges and culverts about 287 THE ECONOMIC DEVELOPMENT OF BRITISH GUiANA .

13%. The remainder, over 80%, was spent on repairing and renew- ing the surface. The work is capably organized and, considering that the regular labor force numbers only 126 men, a commendable amount is accomplished. During the next five years it is suggested that an additional $50,000 per year be allotted to maintenance and that, of the total amount of $150,000 not more than $75,000 should be spent for repair and renewal of surface, while at least that amount should go for drainage, clearing and bridging. A small sum should be allocated from the fund for surface repairs and renewal for a few portable small tools, e.g. crushers and scrapers. The additional annual expenditure of $50,000 may be considered as capital expenditure on improvement and extension, and it has, therefore, been included in the recommended development program. At the Bartica end of the road a number of farmers and settlers are already established and there are signs of further settlement and development. This stretch of road is in hilly country, and its steep inclines and sharp curves are in considerably worse condition than most stretches further inland. It is recommended that this section be improved in stages, first the six miles out from the boundary of Bar- tica, and later a further six miles, followed finally by another six miles up to the Wineperu timber settlement. The cost would be about $120,000 for each stage. A single traffic lane with adequate verges and side drains is recommended. Essequibo East Bank Road. The road on this bank terminates at Maripa; beyond the terminal point rough trails connect a few individual settlements scattered along the river. The possibilities for agricultural development are considerable in the stretch ending in the Makouria river region opposite Bartica. The area also contains stone quarries which, as has already been suggested, could be utilized for the trunk road program. Extension of the east bank road would serve agricultural development in the area and would also provide a transport link to Bartica and the Potaro road, which are at present isolated and only accessible by water. A simple ferry at Bartica could be established at no great cost. It is recommended that an early survey be made and a preliminary plan of alignment prepared at an estimated cost of $25,000. 288 ROADS

Altkinson-Mackenzie Road. Only a rough trail connects the small farms, timber operations and other settlements scattered along the Demerara river from Atkinson to Mackenzie. Necessarily they depend almost solely on water transport. The area shows promise of development, and an early survey should be made to determine the practicability of building a country road. A survey and the preparation of a preliminary plan of alignment would require an expenditure of approximately $30,000. Connections with Rupununi. The Rupununi savannahs can be tied into the colony's road system either by a road, approximately 115 miles long, to the Potaro end of the road to Bartica, or by a road built on the old trail which would cross the Essequibo at Kurupukari and join the future Mackenzie road. The former alignment would be the shorter. A road of the quality of an improved Potaro-Bartica road would require an expenditure of $8,000 per mile for a 115 mile road, or $920,000. As in the case of the Potaro-Bartica road, this new road would only serve the terminus; there is little or no traffic to tap anywbere along its course. Since the road would be mainly for the movement of cattle on the hoof, paddocks, appropriately provi- sioned, would need to be established at intervals. Its rough surface would make movement of cattle by vans impracticable. Although the mission believes construction of the road should be deferred until after 1958, the necessary surveys and planning should be undertaken before that time. North West District Roads The North West District has the advantage of having water transport available on navigable rivers and along the coast. To construct a road betveen this district and the terminus of the colony's main road system at Charity would be a major project, which should be reserved for further consideration after the completion of the first five years' development program. Feeder Roads. The interior development areas are now served by air routes which use a fairly large number of landing strips and river stretches. Feeder roads are required to reach these landing points. Several feeder roads have already been built and a policy of extending them should be energetically pursued. The cost of building the feeder roads, which are actually not much more than trails, has varied between $40 and $123 per mile for the cheapest type of 289 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

trail, up to $260 per mile for a primitive all weather trail. A system of feeder trails approximately 600 miles long, served by the existing land and river air strips, could be completed at an estimated cost of $175,000 to $200,000. Funds in this amount have been included in the program recommended by the mission. Access roads inside irrigation, plantation, agricultural and other development areas will naturally form part of the project designed for each particular case. These roads are made from soil excavated from irrigation canals, drains and ditches and, in most cases, from materials found on or near the site. No provision for these internal roads is required in a general road program. Proposed Interior Program. The total investment for interior and feeder roads may be summarized as follows:

1953-58 Potaro road improvements, ($50,000 annually) ...... $250,000 Bartica sectiori (three stages, at $120,000) ...... 360,000 Essequibo East Bank road survey ...... 25,000 Mackenzie road survey ...... 30,000 Feeder roads ...... 200,000

Total ...... $865,000 After 1958 Rupununi road ...... $920,000

III. Road Transport

An improved road system would lose a great deal of its value if it were not used in an orderly manner. Traffic rules and regulations, including licensing laws, are already established; good standards of road usage are generally observed by pedestrians and drivers of motor vehicles, and to a lesser degree by cyclists. Motor vehicles are, on the whole, kept in reasonably good condition. The traffic police is well organized, capable and efficient. Safety on the roads of British Guiana compares favorably with that in other countries. An improved road system will attract increased motor vehicle traffic, and some additional.measures will be required to control it. The licensing system, in particular, will need some revision because of changed conditions. The present system of licensing passenger vehicles 290 ROADS rightly distinguishes between private motor vehicles, motor vehicles for hire, including taxis, and motor vehicles for scheduled public transport, such as buses. Private cars are licensed for personal use only, on condition that they do not carry passengers for payment. Licenses of cars for hire, including taxis, strictly forbid the carriage for payment of any passengers other than the hirer or his group, during any period, or over any section of the journey. The public transport vehicles carry passengers on scheduled routes, at scheduled fares, and on scheduled timetables, approved and controlled by the licensing authority. The distinction between the three groups is further emphasized by the difference in license fees. To maintain equitable balance in the competition between the two systems of transport, high license fees are charged for buses operating on routes parallel to the railways. At the same time, a large volume of hired car and taxi traffic has been allowed to develop along the same routes; on the coastal roads hired cars out- number private cars in a ratio of about three to one. This is abnormal for the size of population and the activities to be found along these roads. Despite the restriction in their licenses, there is little doubt that these hired cars do pick up and set down an appreciable number of wayside passengers. The present policy should be reconsidered. The practical effect of the high license fee for buses has been that the service is operated with unsuitable vehicles, overcrowded to the dis- comfort of the passengers, and with little or no margin of safety. The situation is aggravated by the individualistic attitude of the operators who, though constituted into companies, run their vehicles without any apparent coordination of administration, operation or finance. The bus services cannot have taken much traffic from the railways, but they have themselves undoubtedly lost considerable traffic to hire cars abus- ing their licenses. It appears that a few bus companies have been unable to compete and have been forced into liquidation. Nothing is more damaging to orderly road transport than to be partly financed by bankruptcy. The mission suggests licensing of public bus and private hire services be revised so as to provide that: 1. Bus services operate only on routes where there is real need, and that a company applying for a bus service license is properly constituted as a company and operate as such. 291 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

2. The ban on the carriage of roadside passengers by hired cars or taxis is strictly enforced. 3. Bus services operate along scheduled routes, in accordance with published timetables and tariffs of fares, all subject to approval by the licensing authority. 4. Standards of vehicles, and their maintenance, are subject to approval and regular inspection. 5. Qualifications of drivers are tested, and their maximum working hours and minimum hours of rest between shifts regulated. It is also recommended that discrimination in license fees between different routes be discontinued. A healthy competition between rail and road transport can be achieved if strict control of operations, equipment, safety and condition of work on all road services is substituted for the extra taxation. Standards of vehicles should be at least equal to those now applied to the Georgetown local bus services, and, in fact, perhaps higher, as country bus services operate over longer distances and carry passengers with more luggage. From the calculations worked out in Chapter 17 it would follow that fares should not differ very much from third class rail fares. The licensing of motor vehicles carrying only goods needs no revision as long as the conditions of the "A,' "B" and "C" licenses are strictly observed by the holders.

IV. Local Transport

The local bus services in Georgtown are operated by Motor Trans- port Limited, a private company with an authorized share capital of $200,000, of which $95,000 has been issued and fully paid. The company operates 14 routes in the town area with 20 buses. The average trip is three miles and round trips take from 20 to 40 minutes. The standard fare is six cents, paid on the "passimeter" system in three- penny coins. The buses have a capacity of 30 passengers seated, and 10 standing, with 21 as the average number of passengers carried on a trip. The fleet of buses is in good condition, the garage and workshop are well equipped and well run, and skilled labor is available and stays on the job. Management, administration and operation are of a good standard, and the service meets the needs of the local population. 292 ROADS

The company's operating results show a moderate operating surplus in the past few years of around $30,000 per year, but allocations to depreciation reserve turn the surplus into an annual deficit of about $8,000. No dividends have been paid to shareholders. At times the company has asked for government assistance either in the form of fare increases or of concessions on the rate of duty payable on petrol, oil and spare parts. There are obvious objections to both these measures and, until now, they have been refused by the government. The present standard fare of six cents is fair and practical in Georgetown, where average traveling distances do not vary greatly and where the town area does not sprawl into outlying districts. Standard- izing the fare has the advantage of simplifying administration, collection and accounting. The slot machine or "passimeter" system has, however, one drawback. By not permitting the application of special fares, such as half fare for children, it tends to keep family parties from using the bus services; special concession fares for off-peak periods to fill the buses are also impossible. A rise in the standard fare is tied to the coinage available, and the lowest possible increase requiring only a single coin would be from six to eight cents, or 33%. An increase of this size would probably reduce the volume of traffic. Moreover, it is doubtful whether sufficient eight cerit (4d) coins are in circulation, and the introduction of tokens cannot be recommended. To grant the request for concessions in duty payable or fuel, lubricants and spare parts would place the company in a privileged position and would be likely to lead to similar requests by others. It would also create additional problems and expenses of operation, supervision and control. Moreover, the fact is that buses, by their weight and frequent stops, occasion proportionately more wear and tear of the road surface and more traffic difficulties than other vehicles. For these reasons the two measures have little attraction. The company is not now in difficulties and, for some time to come, it should concentrate on efforts to attract more traffic and make economies in operation. With its experience the company might also expand into the operation of certain country line services out of Georgetown on a fare stages system.

293 CHAPTER 19

Civil Aviation

Atkinson Airport is the principal airfield in the colony. The government's Civil Aviation Department operates it as an international airport which meets class A standards with the one exception of the width of the taxi-ways for aircraft. Its navigational, meteorological, telecom- munication and administrative services are satisfactory. No special provision in the investment program is required for the airport. The widening of taxi-ways may become desirable if heavier aircraft use the airport in the future, but it is assumed that the relatively small costs can be met from ordinary revenues. External air services are operated by three airlines. British West Indian Airways flies three times weekly between Atkinson and Trinidad and once weekly between Atkinson and Barbados, with connections to all points in the Caribbean area, and, in association with British Over- seas Airways Corporation, once weekly to London. Royal Dutch Air- lines operates a weekly service between Curacao, Atkinson, Paramaribo and Europe via the South Atlantic. Pan American Airways serves Atkinson once weekly in both directions on the New York-South American line. The general feeling locally appears to be that the colony is not adequately served in its long distance communications, particularly with the United Kingdom. The Atkinson stops of the three world air lines, British, Dutch and American, are scheduled on the same day, or a day or two apart. Admittedly, however, the timetables on the long distance routes which serve Georgetown must fit into the pattern of schedules of the world's routes as a whole. The three serving Georgetown are not parallel lines, and each serves different parts of the Atlantic hemisphere. For this reason George- town may have to wait until other factors lead the airlines to alter their schedules or increase their frequency of service. Direct service between Georgetown and the United Kingdom involves passengers and mails in three changes two of which are overnight stops. The mission suggests that the company consider the 294 CIVIL AVIATION possibility of revising the timetable of the final West Indies service so as to eliminate one of the night stops. Internal air services have been developed, often under very adverse conditions, by British Guiana Airways, a private company deserving of praise for it pioneering efforts. The company uses landing strips and river stretches which have been surveyed, constructed and equipped by the company, with costs reimbursed by the Treasury. During the six years ending in 1952, a total of $130,350 was spent on surveys, construction, plant, and maintenance of landing strips, and $30,000 has been allocated for 1953. It is recommended that this policy be continued in the future and that at least $30,000 per year be scheduled for capital expenditure on new strips and extensions during the five-year program. The company is efficiently and economically operated, but with the narrowest possible margin in maintenance standards and personnel. No subsidies are now required from the government for the service. Since the company is bound to be of increasing importance in the development of the colony, prompt consideration should be given to its future role. Up to the present the company's operations have grown under the direction of a qualified manager, with long and outstanding experience of the very special air transport conditions and needs of the colony. There is, however, a constant turnover of flying personnel. Skilled pilots are attracted by the type of pioneering work expected from them, but for lack of security in employment, generally do not renew their contracts beyond the initial term of a few years. For continuity's sake, it is essential to provide for suitable training and education of future personnel both in management and staff, and to assure security of employment and general staff welfare. The mission recommends that the airlines be maintained as an independent local company in view of its unique capacity to serve the very special needs of British Guiana's internal transport. Maintenance of aircraft is burdened by two problems; one, the difficulty of finding a qualified and skilled superintendent of maintenance, and the other, the distribution of the work over two separate workshops and stores, one at the ramp for amphibious aircraft at Ruimveldt, the other in a secluded corner of Atkinson Airport. The first difficulty can only be overcome by increased security of employment. To solve the second problem it is recommended that the 295 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA repair shops and stores be centralized and combined with a new landing strip in the immediate surroundings of Georgetown. This new strip would also be highly desirable in order to reduce the cost of air transport between the capital and the remote landing strips in the interior. The fleet of aircraft now available, three Dakotas, two Grummans and one Ireland, is barely sufficient to assure present day services. They are also approaching an age when replacement must be considered. In any case, the company will in the future have increasingly heavy and bulky freight and new aircraft will be needed. It is estimated that at least two freight-carrying aircraft, with limited or im- provised passenger accommodation, will have to be added to the fleet. These aircraft should be of a type which can land on and take off from the strips now provided for Dakotas. It is recommended that the capital expenditure required for centralization of maintenance at the Georgetown airstrip, and the purchase of two aircraft, be financed by the company, either with the assistance of one or two of the development companies now operating in the interior who are interested in efficient transport of their material and produce, or through loans contracted by the company under a government guarantee. Costs are difficult to assess, in view of the varying estimates presented to the mission, and they have not, therefore, been included in the five-year investment program. The airstrip at Georgetown, however, may have to be built by the government, and $30,000 has been scheduled for it. Two aspects of airline operation require closer study than has been hitherto given: 1. In addition to regular services, many special flights are operated under charter agreements. Charter agreements for regularly scheduled flights should be discontinued. These "cream" the traffic with adverse effect on the costs and the charges on remaining traffic. 2. A government commission controls the fares and rates the company is authorized to levy. The commission allows only standard charges. This policy is both too rigid and uneconomic and should be made much more flexible. An elastic rate structure has always been applied in surface transport and it is being increasingly introduced into international air transport. It is particularly appropriate under the conditions prevailing in British Guiana, where air transport must play a major part in the development of remote areas. 296 CHAPTER 20

Posts, Telecommunications and Broadcasting

I. Posts

General. With the completion at Georgetown of the new General Post Office which also houses the headquarters of the Postal Depart- ment, many problems of administration and operation have been solved and the postal services generally function satisfactorily. The volume of work has been steadily increasing in all categories: mails, money and postal orders, parcels, inland and foreign, by land, sea and air, as well as ancillary duties carried out on behalf of other departments such as the issue of licenses, collection of customs and stamp duties, income taxes, court fees and others. There is a working deficit running at an annual rate of about $200,000 on an expenditure of about $850,000, and a revenue of about $650,000, but free services rendered to government departments "On Her Majesty's Service" to a value of about $250,000, turn the cash deficit into a departmental surplus. The present postage rates, inland and foreign, after the last upward revision which took effect from January 1, 1951, are reasonable and compare favorably with the rates of other countries in the World Postal Union. Suggested Improvements. From the mission's insp-ections of postal premises, large and small, in various districts, it would appear that improvements of accommodation for both the postal service and the public are overdue in a number of townships and rural districts. Georgetown is served by a well laid out general post office, but the service in the post office of the second city, New Amsterdam, is seriously handicapped by lack of space. This also applies to a considerable number of medium and small village and rural post offices. A memorandum by the Postmaster General, submitted to the Colonial 297 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Secretary on November 30, 1950, deals with this problem, and this memorandum can usefully serve as the basis of a program of improvement. It is recommended that a capital investment of $300,000 be undertaken during the five years of the program, for the improvement of postal facilities. Mails to and from remote rural areas and settlements are carried by British Guiana Airways at a cost of $1.00 per pound, regardless of the class of mail. This is unremunerative to the Postal Department. It is recommended, however, that, in the general interest of the development of the .outlying areas, losses on these services be accepted until the traffic volume increases to such an extent that a higher postage charge can be introduced. Transport of mail by road in post office mail vans is being substituted for carriage by private contractors, and this policy should be continued. Delivery of mail to the addresses of estate workers, instead of leaving it at the estate's administration office for collection by addressees, should be made general. Continuou5 attention should be given to the training of post office workers of all ranks, if necessary by the occasional engagement of an experienced staff member from overseas. The service cannot afford to lose efficiency in any department in the years of development ahead.

II. Telecommunications and Broadcasting

Telegraph. Telegraph lines have been in operation since 1875. Including cables under the three main rivers, they extend a little less than 200 miles and serve communications between approximately 50 offices, all in the coastal area. The telegraph offices are all combined with the local post office. The service provides adequately for present needs. No further developments are contemplated in the next five years. Increased communication needs can best be met by improved telephone, or radio telephone and radio telegraph services. Telephone. In marked contrast to the postal services, telephone communications are at least a quarter of a century behind in development and the present system is in dire need of overhaul. The center of the telephone system, if one can speak of a center in the present disjointed system, is Georgetown. Its exchange, built for 298 POSTS, TELECOMMUNICATIONS AND BROADCASTING a capacity of 1,000 subscribers in 1923, has at present 1,700 subscribers, largely accommodated on party lines, a makeshift arrangement normally used as a temporary expedient, but now in service for nearly 20 years. There is an excess of extensions on subscribers' lines, yet there is a waiting list of some 1,200, and probably many times that number have not bothered to apply. The exchange is housed in the attic of a totally unsuitable and highly inflammable building, on a site which could hardly be less central. Important inland centers, Atkinson Airport and Mackenzie, have their own exchanges which are not connected with the capital's exchange. Coun- try exchanges are primitive, and are often connected only by a single wire used for telegraph in daytime, and for telephone at night. Com- munications generally are confused and chaotic. The standard of maintenance is poor, chiefly owing to a staff untrained in modern methods. The world war and its aftermath have had much to do with this state of affairs. An improvement plan had been drawn up in the early war years, and further worked out by the Engineer-in-Chief in 1945; the cost was considered too high to be borne by the colony at that time. Tentative negotiations were initiated by the government with the Telephone and General Trust Company, a private concern already operating the Jamaica, Trinidad and Barbados telephone systems, but the talks were discontinued. In 1947 a British firm of consulting engineers was invited to study the 1945 proposals. Their report and recommendations were followed in 1948 by amended proposals from the Engineer-in-Chief. In 1950 negotiations were started with another company which made a survey and a proposal for rehabilitation based on a twenty- year operation by the company. Their proposal was not accepted. In 1951, the previous plans were once more reviewed and brought up to date by the then Engineer-in-Chief. Finally, in 1952 consulting engineers were again requested to send a representative to visit British Guiana to investigate telephone developments and in particular to advise on the accommodation of an automatic telephone exchange in Georgetown. This investigation resulted in the Mackay Report submitted in January 1953. A full development plan has now been prepared by the Engineer-in-Chief for reconstruction and expansion of the telephone service, which is estimated to cost: 299 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Corentyne and Berbice area ...... $ 406,400 East Coast Demerara ...... 348,068 East Bank Demerara ...... 123,018 Demerara to Essequibo ...... 219,908 Essequibo Coast and Islands ...... 215,293 Bartica area ...... 74,150 Mackenzie area ...... 215,935 Georgetown and district ...... 3,200,000

Total ...... $4,802,772

The plans and estimates are now in the hands of the consulting engineers for final study. It is strongly recommended that as soon as the final conclusions of the consulting engineers have been presented, this project be adopted as part of the development program for the period up to 1958. An amount of $4,800,000 is accordingly scheduled for this purpose in the investment program proposed by the mission. A project of this magnitude, involving complicated, delicate and expensive equipment, demands planning by fully qualified engineers, installation under highly specialized supervisors and operation and maintenance by a thoroughly trained staff. It is strongly urged that, throughout the period of construction and until the operation and maintenance of the new installations is completely organized, the services of essential overseas specialists and trainers be utilized to the full. Only training of this type will insure economical operation and a reasonable standard of maintenance in the future. It is further recommended that the preference of both the consulting engineers and the Engineer-in-Chief for a central location for the Georgetown exchange be followed, as the cheapest and most efficient long-term solution. It would also be desirable to persuade the Demerara Electric Com- pany, which supplies light and power to Georgetown, to bring their network of cables underground, whenever and wherever roadworks are necessary for the telephone circuits' trenches. Like the postal services, the telecommunications department operates at a loss, running at an annual rate of around $70,000 on an expenditure of around $380,000 and a revenue of around $310,000. If free services to government departments at a rate of $100,000 are 300 POSTS, TELECOMMUNICATIONS AND BROADCASTING taken into account, however, the cash deficit becomes a departmental surplus of $30,000 per year. A flat rate is charged for all telephone service regardless of the number of calls made. Business premises are charged double the standard rate. This type of tariff is attractive for relatively small net- works, by virtue of its simplicity in administration, collection and accounting. It has the obvious drawback of favoring the large user over the small, though the advantage of easy and frequent communication between the two should not be overlooked. Sooner or later, however, the Georgetown exchange is bound to outgrow the flat rate system and the two-part rate system, consisting of a fixed charge and a charge per call, may have to be introduced. It is suggested that, at least during the period of transition, a rather higher than usual number of free calls be included in the fixed charge for the private user. Radio Services and Broadcasting. Radio telephone communications with a number of government and private radio-telephone stations distributed over all districts are satisfactorily served through a central radio station in Georgetown. Overseas services are operated by the Cable and Wireless Company. Communication with the West Indies, North America, Great Britain, Ireland and Western Europe, and ships at sea is possible, but the traffic remains small. Aeronau- tical radio communications are served through the station at Atkin- son Airport. Broadcasting services are provided by the British Guiana Broadcasting Company, a commercial concern, under government charter. The wireless transmitters for the postal radio-telephone service, for Cable and Wireless, and for broadcasting are now being concentrated in one open space outside Georgetown, well situated to insure operation without interference, and without hindering future town development. Broadcasting services are fair and they appear to meet the popular demand. The commercial quota is high, the educational, low.

301 CHAPTER 21 Recommended Five-Year Program for Transport and Communications

In working out the general lines of policy for the development of transport and communications, the following points should receive consideration: 1. The main effort should be directed towards making all transport and communications services self-supporting, each in its own field. 2. The coordination of the development projects with those of other departments should be organized in such a manner that essential improvements in all fields will be harmonious and leave no appreciable interval between the completion of interdependent developments. 3. Legislation for the orderly development of transport should be brought up to date, particularly as regards policy on public and private transport. 4. The provision of postal and telecommunications services free of charge to government departments, a universally accepted policy, should continue, but a code of proper usage should be impressed on all civil servants. 5. The present local zone time, 31/4 hours behind G.M.T., is one of the very few remaining outside the world's time zone system based on differences of one hour or half an hour between zones. The odd time zone of British Guiana causes considerable in- convenience within transport and communications systems and to the public using them. It is recommended that a change-over to a standard time of 3 or 31/2 hours behind G.M.T. be considered. Table 64 summarizes the investment program recommended in the transport and communications sector. 302 TABLE 64

RECOMMENDED TRANSPORT AND COMMUNICATIONS INVESTMENT PROGRAM 1954-1958 32 (in dollars) Deferred Total > to 1959 Recom- 2

1954 1955 1956 1957 1958 and beyond mended - Ports D Georgetown, wharf 600,000 300,000 900,000: Demerara, ferry berths ...... 200,000 200,000 Berbice, ferry berths 200,000 200,000 8 Shipping Ferry boats ...... 500,000 500,000 1,000,000 O Steamers on order ...... 180,590 180,590 Q Containers ...... 200,000 200,000 Railways Modernization .1,500,000 1,000,000 1,000,000 500,000 378,000 4,378,000 2 Roads Quarries .500,000 500,000 1,000,000 Main roads .1,250,000 1,500,000 1,500,000 1,750,000 1,750,000 3,930,000 11,680,000 C Georgetown ...... 50,000 50,000 100,000 TABLE 64

RECOMMENDED TRANSPORT AND COMMUNICATIONS INVESTMENT PROGRAM-Continued 1954-1958 (in dollars) Deferred Total 6 to 1959 Recom- 1954 1955 1956 1957 1958 and beyond mended Interior roads-Potaro road ...... 170,000 50,000 170,000 50,000 170,000 610,000 m Essequibo East Bank 25,000 25,000 f Mackenzie road 30,000 30,000 % XRupununi road 920,000 920,000 B b Feeder roads ...... 40,000 40,000 40,000 40,000 40,000 200,000 $ Civil Aviation. Interior strips ...... 30,000 30,000 30,000 30,000 30,000 150,000 Georgetown strip 30,000 30,000 z Posts and Tel. Postal .60,000 60,000 60,000 60,000 60,000- 300,000 C Telecommunications .800,000 1,000,000 1,000,000 1,000,000 1,000,000 4,800,000 t

5,480,590 5,060,000 4,130,000 3,955,000 3,428,000 4,850,000 26,903,590 2 Forestry THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

GLOSSARY OF THE INDIGENOUS AND SCIENTIFIC NAMES OF TREE SPECIES IN ORDER OF THEIR APPEARANCE IN THIS REPORT

Greenheart ...... Ocotea rodiaei Wallaba ...... Eperua spp. Mora ...... Mora excelsa Silverballi ...... Lauraceae Wamara ...... Swartzia leiocalycina Purpleheart ...... Peltogyne spp. Duka ...... Tapirira spp. Karohoro ...... Scheffilera Futui ...... Jacaranda Kauta ...... Licania spp. Yaruru ...... A spidosperma excelsum Crabwood ...... Carapa guianensis Cedar ...... Cedrela spp. Simarupa ...... Simaruba amara Dalli ...... Virolla surinamensis Dukalli ...... Parahancorniaamapa Locust ...... Hymenaea spp. Kabukalli ...... Goupia glabra Kakaralli ...... Eschweilera spp. Kautaballi ...... Licania spp. Balata ...... MManilkara bidentata

306 CHAPTER 22 Forest Resources and Administration

I. The Forests

The forests of British Guiana extend over approximately 70,000 square miles or about 83% of the total land area. Forest covered zones begin near the coastal agricultural areas in the north and extend southwards to the savannahs and forested mountain ranges on the Brazilian frontier, and from the Surinam border on the east, west- ward to Venezuela and, farther south, to Brazil. The forests are one of the great assets of the colony. They are a renewable natural resource and, if treated as such, will support a stable and prosperous forest industry for the indefinite future. The forest area is traversed by an immense river system which, except for the Ireng and Takutu rivers, belonging to the Amazon watershed, drains directly into the Atlantic. More than half of the land area of the colony is in the watershed of the Essequibo river or its numerous tributaries, none of which are navigable. The lower reaches of the river, however, are navigable by ocean-going steamers carrying lumber from the sawmills on the Stampa and Kaow islands near Bartica. Several other large rivers draining into the Atlantic are navigable by steamers, while the Berbice river, navigable for about 110 miles inland, offers the furthest penetration inland by large craft. Beyond the limits of navigation practically all the rivers are inter-. rupted by long stretches of rapids and falls which make the transport of logs and other forest products impractical. For the present, the forests may be broadly divided into two zones, the exploitable forest areas of the "near" interior, of about 14,000 square miles, and the virtually inaccessible forests of the "far" interior covering some 56,000 square miles, two thirds of which is potentially exploitable. In the exploitable zone, there are only about 500 square miles of privately controlled forest; the rest consists of crown lands under the jurisdiction of the colonial government. Included in the 307 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA latter are small forested areas which have been made into Amerindian reservations. The narrow belt within the "near" interior forest next to the agricultural areas of the coastal plain is being pushed back by agriculture under the pressure of population. This belt is being reduced to bush growth, interspersed with inferior trees, and subject to fires. Never- theless, the bulk of the "near" interior forests is exploitable, and has given rise to a logging industry concentrated in the Bartica Triangle. Forestry Department investigations indicate that, even allowing for some increase in the rate of exploitation, this zone is capable of supporting a wood producing industry for some 25-30 years. TABLE 65

VOLUME OF STANDING TIMBER IN THE EXPLOITABLE FOREST' 1950 (Thousand cubic feet of round timber; true measure) Class of stand Volume per square mile Total State .. 940 12,690,000 Private .. 705 352,500

Total . 13,042,500

'Based on data prepared by the Forest Department, 1952. Figures based on relative proportion of timber volume in size classes 4"-16" diameter and on sample plot records for diameters over 16".

Numerous observations made throughout this zone by the mission indicate that it contains great forest resources but that its exploitation is physically difficult. In order to continue and expand the long-run extraction of forest products, it is urgently necessary to revise and to bring up to date land policy and forest management methods, and to introduce improvements in the logging industry. Considerable efforts have already been made in this direction by the staff of the Forestry Department. The "far" interior zone does not present an immediate problem because of its inaccessibility and the availability of other exploitable areas. Balata gums, minor forest products and a few timbers pro- 308 FOREST RESOURCES AND ADMINISTRATION vide a small income for nomadic Amerindians and supply the limited needs of scattered gold and diamond camps and of a few cattle ranches in the savannahs. Scattered Brazilian settlers and cattlemen across the Ireng and Takutu rivers have some need of structural wood materials which can be met from the savannah forests. The forests of the colony are typically tropical, and consist largely of evergreen stands, containing a wide variety of hardwood trees, lianas, shrubs and palms. The near interior forests are largely of a rain forest type, and cover the undulating lowland regions where the soils are heavier and the annual rainfall ranges from 80 to 120 inches. Greenheart (Ocotea rodiaei) is found in reefs on the more favored and better drained sites in this zone. Hilly and light sandy soil sites support dry rain forests of two dominant species of wallaba (Eperua sp.). Whenever the drainage of creeks is impeded there are swamps with dominant stands of mora (Mora excelsa). Although one species may be dominant in a particular area, several hundred different kinds of timber trees are to be found in a zone. Unfortunately very little use has been made of these other timbers and their potential economic value has still to be assessed. At present the timber export industry concentrates largely on the production of three species: 1. Greenheart which, owing to its virtual indestructibility, is the most desirable species for marine construction, 2. Wallaba which makes the strongest wooden poles for high lines. Its heartwood is impregnated with a natural preservative which makes it virtually rot proof, 3. Mora which can be used to make railroad cross ties and cross arms mechanically much stronger than oak, resistant to decay and fireproof without chemical treatment. Apart from quantities of greenheart, wallaba and mora, domestic consumption of wood includes silverballi, which is used extensively in boat construction and, not infrequently, for house building, window sashes, and other similar uses. Wamara and purpleheart are employed for furniture, turnery and general interior ornamental work. Duka, karohoro and futui are used as peeler logs in the match industry. Kauta and yaruru and woods of similar density are used as fuel both directly and as charcoal. Crabwood is employed in furniture and cabinet making and interior finishing, and cedar for canoes, paddles 309 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA and agricultural implements. Many other woods, according to the frequency of their occurrence within specific areas, are employed to meet a variety of strictly local needs. An increased need for wood and wood products, together with the limitation placed on lumber imports by the shortage of shipping space during the war, led not only to marked improvements in the volume of production but also to the use of a greater variety of species. These beneficial trends are especially noticeable in the production of the soft hardwoods, simarupa, dalli, dukalli and silverballi, which are gradually replacing the limited quota of coniferous imports from the north. Almost 500,000 board feet measure of white pine is, however, still imported annually for special uses. Greater efforts should be made by producers and users to substitute domestic wood for the largely traditional use of white pine. Considerable interest was like- wise displayed during and after the war in mora, locust, kabukalli and crabwood. The demand for charcoal, which increased noticeably after the war, has recently declined owing to the introduction of liquid fuels in the colony and the West Indies, to which British Guiana made considerable shipments of charcoal in the past. Selected grades of charcoal still find a place in the British market. The conversion of the Georgetown electricity plant from wood to liquid fuel has appreciably reduced the total requirements for fuel wood.

II. Forest Administration

Although the Forestry Department was established in 1925-26. progress towards effective forest management has been very slow. The forests of the colony were regulated by the Crown Land Ordinance of 1903, and the Forest Ordinance, although amended in 1951, remained ineffective as far as forest regulations and management were concerned. Forests were under the supervision of the Forestry Depart- ment but the land itself was under the administration of the Lands and Mines Department. In effect, the management of trees was separated from the management of the land on which they grew. It bad been realized for some time that this dual control was unsatisfactory and on February 16, 1953, "An Ordinance to Consolidate and Amend the Law Relating to Forests" was approved by the Governor. This gives the government the authority to declare any crown land area "Crown 310 FOREST RESOURCES AND ADMINISTRATION

Forests" to be under the jurisdiction of the Forest Department. Its main purpose is to provide for effective combined forest and forest land management. Apart from this dual control of the forests and forest lands, the Forest Department has been handicapped by a lack of personnel and funds for management and administration. The Department still has too few technical foresters and administrative forest personnel. A shortage of rangers and inadequate transportation has slowed down inspection of the increasing number of wood cutting areas, timber concessions, and timber sale boundaries. Because of their heavy operational duties, rangers are unable to acquire an intimate knowledge of the large areas under their jurisdiction, nor are they able to find time to train assistants. A shortage of staff officers precludes frequent inspection of timber sales and thereby delays solutions for the many technical and administrative problems encountered in the field. The Forestry Department is unable to carry out the continuous survey, reconnaissance and silvicultural research that is essential for the regeneration of depleted timber stands. The available personnel spend most of their time checking and measuring timber produced from crown lands, collecting revenues, and inspecting agricultural permit areas within forests. En route to timber areas they perform administrative inspections over as large an area as time permits. Qualified technical personnel with experience in the tropics are not easy to secure from abroad. A scheme to provide technical forestry training abroad for qualified young men of British Guiana is being successfully carried out. However, these men, upon graduation, lack operational field experience and must learn local forest conditions before they are ready to solve technical problems and to be efficient administrators. This field knowledge is essential if they are to gain and retain the confidence of the government, the personnel under their supervision, and the lumber industry.

III. Needs of Forestry Department

Although the forests have yielded revenue to ithe government over the past 10 years, this has been at the expense of adequate forestry management. Timber was harvested with inadequate regard to the future productivity of the forests. 311 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The table below shows the total revenues from the forests and the funds allocated for their administration.

TABLE 66

REVENUES AND EXPENDITURES' OF THE FORESTRY DEPARTMENT 1942-51 Revenue Expenditure Year Colony C.D.&W.2 Colony C.D.&W. Surplus 1942 ...... 105,534 32,946 72.588 1943 ...... 114,881 33,348 81,533 1944 ...... 111,425 37,393 74,032 1945 ...... 118,303 38,524 79,779 1946 ...... 122,617 2,307 41,232 2,307 81,385 1947 ...... 128,929 6,683 35,773 6,683 93,156 1948 ...... 221,243 6,273 66,557 6,273 154,686 1949 ...... 219,018 6,217 127,181 6,217 91,837 1950 ...... 237,830 9,460 136,662 9,460 101,168 1951 ...... 236,720 19,498 143,136 19,498 93,584

1 Revenue collected by the Department of Lands and Mines and Ranger Staff not carried by Forest Department until 1948. ' Colonial Development and Welfare Fund.

At present the administration and technical management of forest growth on crown lands are directed from the headquarters of the Forest Conservator in Georgetown. The recent establishment of two additional forest divisions has brought the total to four field divisions. These are: 1. Northwest Division, with headquarters in Morawanna, 2. Essequibo Division, with headquarters in Bartica, 3. Demerara Division, with headquarters in Georgetown, and 4. Berbice Division, with headquarters in New Amsterdam. Because of a shortage of personnel, only two divisions are administered by technical foresters. In addition to a divisional forest officer, a divisional forest inspector and a complement of rangers, assistant rangers and boat hands are usually assigned to the staff of the field division. The number of rangers and assistant rangers within a division varies with the work to be done and the manpower available. Theoretically there are from one to seven rangers, but in practice 312 MAP 4

BRITISH GUIANA FOREST TYPES AND -V FIELD ADMINISTRATIVE DIVISIONS

SWAMP FOREST

BOO FOREST ~MONTANE FOREST

FOREST RESOURCES AND ADMINISTRATION there are less, because of vacancies, retirements, leaves and special assignments. The total authorized strength of forest rangers is 29. Because of the slowness of interior water transportation, the rangers spend a great deal of time in travel. The insufficiency of water craft reduces their time for field work still further. Most field work has to do with measuring, scaling and collecting royalties for timber cut on the crown lands. Even so, field and headquarters forest officers estimate the loss in uncollected royalties at 25 to 30%o of the total. The mission believes that resident timber sale rangers should be assigned to the most active areas to avoid time-consuming travel from divisional headquarters. Several small logging operations can be grouped together under the jurisdiction of one strategically located ranger. The effectiveness of field supervision in the isolated areas is considerably lowered by long travel distances and insufficient living accommodation. Provision for good housing and transportation will be especially needed in the proposed "crown forests." Added responsibility for the administration of forest growth and land management will impose additional work on field personnel. Field stations should be gradually moved to the forests and away from the larger towns. These stations should eventually be equipped with radios for communication with divisional headquarters. The recent transfer of a staff silviculturist from the colony left the Forestry Department seriously handicapped. Every effort should be made to replace him. The expected departure of another technical forester will leave departmental headquarters office with one technical forest officer whose fundamental duties are administrative- managerial. In order to have minimum acceptable standards for the operation of crown forests, to introduce forest management practices and to provide for future sustained production, additional technical, directive and field operational personnel are urgently needed. To meet the essential needs for personnel housing, training and transportation during the next five years, the mission recommends an additional allocation to the Forestry Department of $465,000. The bulk of these funds would go as follows: Professionally trained men ...... $ 75,000 Inspectors, rangers and assistant rangers ...... 150,000 Personnel housing, transportation, equipment, etc. 125,000 Total ...... $350,000 313 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

In addition, periodic in-service training, consisting of short practical courses in forestry practice and administration, should be given to all field personnel with the participation of forest officers from headquarters. The mission recommends an allocation for in-service training during the five-year period of $25,000. To increase the efficiency of operational field personnel and to lay the foundation for an effective cadre of forest rangers, it is recommended that the two best qualified non-technical men of ranger caliber should be sent to a rangers' school in Canada or the United States. A complete course in such a school takes a student through every phase of practical forestry work in about 18 to 24 months. The objective is to turn out, not academicians, but all-round practical forest rangers. For this purpose the mission recommends an allocation for two men of up to $20,000 as needed. The reorganization and establishment on a permanent basis of the division of silviculture, to conduct silvicultural research, to direct timber evaluation surveys and to prepare management plans is recommended, with an allocation of funds for five years of $70,000.1 The total recommended program amounts to $465,000.

IV. Forest Regeneration Program

Extensive exploitation of selected marketable timber in the past has left many thousands of forest acres supporting a vigorous natural reproduction of desirable species in competition with a mass of tropical growth for space and light. Destruction by fire of standing forest or damage to regeneration is relatively negligible, with the exception of wallaba areas, where exploitation on dry sands was intensive and fire damage greater. Serious fires can be expected after drought years, which usually follow a 14-year cycle. After years of observation and study Forester D. B. Fanshawe came to the conclusion that the regeneration problem in the colony falls into three distinct groups of exploited forests: "1. The regeneration of gregarious forest after more or less intensive exploitation, applicable to greenheart, wallaba and mora forests;

'Additional funds of $50,000 will be needed to continue this work after 1958. 314 FOREST RESOURCES AND ADMINISTRATION

2. The regeneration of nongregarious forests after highly selective extensive exploitation, applicable to the mixed kakaralli and kautaballi rain forest of the northwest and north, and the mixed kabukalli and' wamara seasonal forest of the northeast district; 3. The regeneration of secondary forest." The objectives are to obtain regeneration, in the first case, of dominant heavy hardwood, in the second of heavy and light merchantable trees, and in the third of light hardwoods. With these objectives in mind, experiments in natural regeneration were carried out for some 15 years in several of the areas where highly selective extraction of marketable trees had been practiced. Some 20,000 acres of exploited forest were treated on both sides of the lower Essequibo. Pending the results of these experiments no new work was undertaken, and a part of the experimental area was exploited again, destroying the effect of treatment. It was decided not to continue these experiments until agreement had been reached on the policy most suitable for large-scale timber operations. The Forestry Department plans to pursue the treatment of exploited areas to secure better regeneration as soon as funds are available. The method used consists of girdling and poisoning undesirable species with sodium arsenic at a cost varying from $2.00 to $3.00 per acre. No experimental work has been undertaken on secondary forests, which are found mostly along the rivers and creeks where some agricultural development is taking place. In general these forests are heavily depleted and are understocked with desirable species. Any sizable areas that are not suitable or needed for agriculture could probably be improved by planting with soft hardwoods. In the past funds were inadequate for continuous research and treatment in the more widely dispersed areas. Research in forest management and its application is a long-term program which cannot pay for itself in a few years. Nevertheless silvicultural research is essential to perpetual productivity in the forests and a continuous wood supply in future generations more than justifies its current cost. The mission has recommended a silviculture division in the Forestry Department. To take advantage of existing knowledge, based on years of experimentation, it is recommended that silvicultural stand improvement be undertaken in the heavily exploited forest areas, and 315 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA plantations be established in areas where artificial planting is needed. Forest stand improvement work on about 75,000 acres and the development of soft hardwood plantations of about 1,000 acres over a period of five years would require about $200,000, and the mission recommends an allocation of this sum to the Department. After 1958, as technique improves, the acreages for both purposes should be increased appreciably. The funds required for the period 1958-62 may amount to about $300,000.

V. Appraisal of Forest Resources

In the past, forest inventory work was carried out under the direction of staff and division foresters. Fairly reliable estimates of growing stock based on forest surveys and reconnaissances are available for approximately 2,500 square miles. Valuation surveys were made on a 1.5% to 2% basis, and forest reconnaissances were carried out on a 0.25% to 0.5,% basis. Reconnaissances were usually made along rivers and roads, so that the accuracy of estimates for portions of the area involved is not high. Forest maps, based on.surveys with general topographical details, cover approximately 4,000 square miles. Because of a shortage of funds and qualified personnel, this very important task of forest inventory is lagging and, because of the relatively small sampling, the desired degree of accuracy has not always been attained. A reliable forest inventory, used in conjunction with the results of a physiographic survey, is essential to intelligent planning of logging operations, the assurance of a continued log supply to the existing mills and the selection of the best new mill sites. It is essential that timber survey of the exploitable forests be accelerated and continued until a reliable inventory is well advanced. It is recommended that the additional surveys covering an area of about 1,500 square miles be made during the initial five-year period. Maintaining a permanent staff for this work will tend to reduce the cost per mile and to increase the degree of accuracy. The mission recommends an allotment for this project of $250,000.

316 CHAPTER 23 Timber and Wood Products

I. Production of Logs, Fuel and Miscellaneous Wood Products

It is estimated that, in 1952, total output of logs reached 4 million cubic feet, measured in local units, or about 5 million cubic feet of true volume. In addition, an equivalent of well over six million cubic feet of fuel wood and charcoal and one third of a million cubic feet of miscellaneous products were supplied. About one half of the log volume is greenheart plus' small quantities of other Class I logs destined mainly for the export market. The other half is mainly for local use, but includes the export of small quantities of mora, wallaba, cedar and crabwood to the West Indies, Australia and the Nether- lands. With the exception of small quantities of logs, some wood fuel and minor products from private lands, almost the entire log production is obtained from crown land concessions. Table 66, an abridged table of output of wood products for 1951, indicates production by general classes.

A. LOGGING OPERATIONS

Only the large sawmilling industries specializing in the export of timber, lumber and other wood products administer their timber concessions directly and produce sawn logs, piling and hand-squared timber. They maintain logging camps provided with bunkhouses and cook shacks for bachelor labor, small cabins for families and food shops for the sale of staples, and often, a school house if the number of camp children warrants it. The camps vary from barely habitable shacks to well-built modern units equipped with water and light. Well-established camps are usually found where logging operations are carried out on a long-term basis. When the travel time from camp 317 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

to job becomes prohibitive, smaller camps are set up to handle distant areas, and the original camp becomes the headquarters for the entire operation. Periodically the men from the side camps visit headquarters to replenish their supplies, receive their pay and arrange with the job superintendent for a new portion of "piece work." These procedures vary with the location, the conditions governing the operations and, most of all, the distance from Georgetown and other in- habited centers offering material comforts and recreation not usually available in isolated tropical logging camps.

TABLE 67

OUTPUT OF TIMBER, WOOD PRODUCTS AND FUEL FROM CROWN LANDS, 1951 Equivalent True Value' Class of Product (cubic feet) Timber Greenheart ...... 2,322,241 Other Class I logs ...... 17,803 2,340,044 Crabwood ...... 490,794 Mora ...... 265,970 Wallaba ...... 447,867 Other Class II logs ...... 565,806 1,770,437 Class III logs 426,294

Total logs 4,536,775 Round Wood 146,316 Split Wood 154,868

TOTAL TIMBER 4,837,959 TOTAL FUEL (firewood and charcoal) 6,371,360

GRAND TOTAL 11,209,319 'Equivalent of round timber in true measure under bark. Source: Annual Report of the Forest Conservator, 1951.

The majority, if not all, of the small sawmill owners supplying lumber for local consumers do not operate timber concessions directly, 318 TIMBER AND WOOD PRODUCTS

although they may have timber concessions granted by the colonial government. The log supply to meet requirements of these mills is produced by a large number of logger-entrepreneurs who either have small timber concessions or work on those secured for them by millers or others. As a general rule, mill owners are expected to finance loggers before actual logging operations begin. Such financing is necessary to provide labor with advances, food and other materials, and to assure some regularity in log deliveries. It is not unusual for loggers to request additional advances if unforeseen delays, such as the breakdown of machinery, the lack of water transport, sickness or other factors intervene. Such requests are 'usually granted for the sake of getting logs for continuous mill operations and to protect the original advances. It appears that there is no ready cash available to finance continuous logging production of any size. The skilled logging entrepreneur usually has a good following of key workers, owns a few tools and, occasionally, a winch powered with a secondhand automobile engine. Less often, he may have one or more pontoon type barges or ballahoos.' If he has only the skill but none of the necessary equipment, his work is more difficult, since he must assemble in the requisite time scarce equipment and draft animals, and none too eager labor, to engage in cutting the skidding logs. He is harassed continuously by the need to make payments for rental of a winch and its frequent repairs, for the hire of oxen, advances to key personnel, payments to casual labor electing to return to civilization at an inappropriate time and food for forest labor. When logs are at the landing the problem of securing barges or ballahoos to transport them to the mill often becomes serious, particularly if the bargeman happens to represent rival interests. Long waiting on the riverbank to deliver the efforts of many weeks of arduous labor is discouraging, so the logs not infrequently go to the rival mill whose bargemen may have empty vessels handy. These cases are not usual, but they occur frequently enough to support the belief that the shortage of craft for log transport is a problem in addition to that of financing logging proper. Small river craft with extended cross beams over the top. Heavy-non.floating logs are tied to these extended beams on both sides. Logs ride almost completely submerged in the water. When loaded these vessels ride downriver close to the water and are steered by poles and sweeps. 319 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Since it is often responsible for lack of regular deliveries of logs to the mills, it should be dealt with as part of the over-all logging problem. Felling of timber is done with single bit axes weighing from three and a half to five pounds. Usually this work is done at a unit price per linear foot of log length at the stump ready for bunching or skidding. Logs are not cut to standard lengths, but into the largest possible straight lengths. By agreement logs may be left round and free of limbs, or partially squared, and the logs selected for export are usually squared with broad axes. One or both ends of the log are generally pointed like a cigar, permitting them to slide more easily over the ground while being skidded and, it is said, to prevent deeper checking into the valuable portion of the wood. Cigar-shaped log ends waste three to four linear feet and, when added to the high stumps which are from four to eight feet high (depending on the diameter of a tree and the development of buttresses) represent a waste of some four to ten cubic feet of saleable wood per log. Because many trees are heavily buttressed or fluked to the height of some eight to ten feet, the cutting of the tree is done above these buttresses, and this necessitates the building of a scaffolding for an axe man to work from. Trees falling down from high stumps break and crack more readily. As a rule a cracked tree is a complete waste to the owner of the tract, to the logger, and to the feller, because the latter does not get paid footage for an unacceptable log. It is evident that the time consumed in building scaffoldings and in felling trees which are unacceptable because of cracking, as well as the loss of valuable wood left in the stump, justify a positive drive against high stumps and the use of axes in felling timber. Concerted action by the industry and forestry department is needed; a solution of this problem will require combined efforts at all levels, including that of the lumberjacks, who, if these wasteful practices were abandoned, would get paid for extra footage in return for, at the most, a slight increase in physical effort. Current annual losses of good usable wood left on forests in the form of high stumps, and the practice of having cigar-shaped log ends, are large. They are conservatively estimated at about 400,000 cubic feet annually, or a loss of about 11%o of the quantity produced in 1950 and 1951. The use of narrow cross-cut saws with raker teeth and heavy iron 320 TIMBER AND WOOD PRODUCTS

wedges should be tried in the felling of timber throughout the logging areas of the colony. Unprejudiced and reliable men should be employed on this project until the technique of felling with saws is solved. This should then be followed by the use of mechanical chain saws to cut through the heavy buttresses and to permit sawers unim- peded access to the trunk proper. Log extraction and transportation, especially in the production of forest products for domestic use, encounter substantial difficulties. In most instances creek and river banks were cut over a long time ago, necessitating the construction of roads penetrating inland, and the provision of motor transport and expensive fuel in addition to the maintenance of barges. Penetration roads and skidding trails are costly but do not require a continuous outlay of funds for expensive machinery. However, the lorries and mechanical winches pose a serious problem. In an effort to meet increasing demands for forest products, every type of available motive power has been brought into the woods, with little or no assurance of easy or convenient replacement of parts. As a result many old trucks of British and American make are rusting away, having already been "cannibalized" for precious parts. Lorries are invariably overloaded and, often, improperly loaded and are employed for long hours with little or no maintenance. Operating over poorly located and badly built penetration roads, they deteriorate very rapidly, and only the ingenuity of "bush" mechanics keeps a few obsolete lorries going. In purchasing new lorries for logging and the transport of forest products, the most adaptable lorries should be chosen, regardless of their origin. Heavy duty 7 to 25-ton lorries especially equipped to transport logs are too costly for the average domestic logging operation. Lighter types of lorries normally manufactured for general use but equipped with overload springs should be selected. They should be reinforced throughout the frames and adapted to meet load and road conditions. These charges can be made economically in the colony. A similar situation exists with mechanical winches powered with a great variety of old automobile engines. Most of the current homemade one-drum winches are a source of unwarranted expense and delays in skidding logs. Homemade winches, if properly built and powered with adequate but not. obsolete motors, will do the required task satisfactorily. There is no reason why such a winch should not 321 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA be developed by a first-class machine shop in the colony. It may cost more initially but it will decrease operational and maintenace costs in the long run. Visits by the mission to numerous large and small logging operations showed a lack of technical planning. There is also a lack of orderly and timely execution due to insufficiency of machinery, and spare parts, and weakness and lack of operational knowledge on the part of foremen. To keep the milling industry supplied with an increased volume of logs, logging operations should be accelerated, by providing: 1. Machinery and means of transport needed during the next five years for logging proper, at a cost of $300,000. Loans should be extended for the purchase of tools, machinery, barges and, in some cases, direct provision should be made for financing payrolls, 2. Higher standards in the technical planning of logging jobs, including logging road location, and improvement in foreman- ship. An all-round practical field logging engineer should be engaged by the Forestry Department to review in detail the operational problems of the numerous logging projects and serve as a field job consultant to the industry on major problems. Part of his salary and expenses should be underwritten by the logging industry. The estimated cost for the next three years is $50,000.

B. LUMBER AND SAWN TIMBER

During 1952, production of sawn lumber and dimension timbers in the colony approached 30 million board feet measure (bfm.). This lumber was produced by 78 circular, gang and band mills of varying capacity. Approximately 50% of this production was achieved by some 25 mills with an average daily production of 1,300 to 4,000 bfm., a further 38% by about 8 mills of the largest capacity, and the balance from some 45 mills of very low daily output.2 Negligible quantities were produced by the pit-sawing method. Only a few mills are located well inland on the river banks or islands relatively close to the source of log supply. The vast majority are at the mouths of the

2 Approximate data obtained from incomplete current information and annual reports of the Forest Conservator for 1950 and 1951. 322 TIMBER AND WOOD PRODUCTS rivers, close to centers of population. They are, however, at a con siderable distance from the forests and economic sources of logs. Lumber and structural timber production by the milling industry is divided into two classes: first, the structural timber and the dimension wood for export produced by the larger sawmills, and second, lumber and dimension wood produced for local consumption by the smaller plants. The export of wood products, which go for the most part to the United Kingdom, the Netherlands and the United States, is concentrated in the hands of a few milling companies capable of cutting these materials to meet the rigid specifications of the foreign trade. These companies enjoy a fairly brisk business built up during many years of sustained effort. Most of the cutting machinery used in production of long and heavy export grade timbers takes the form of the old-fashioned type of vertical gang saw that is effective in sawing greenheart. A very modern and well-equipped band saw plant estimated to produce 10 to 12 million bfm. annually is being completed by British Guiana Timbers Ltd., and will begin operations by the middle of 1953. Small quantities of by-product lumber and second grade timbers resulting from custom cutting for a very demanding foreign trade, are supplied to local markets. Suppliers of squared timbers and piling materials for export trade do not maintain on hand stocks of ready to ship materials. This usually results in a considerable delay in filling orders and often necessitates "fishing" for logs in a muddy log pile that may or may not meet the needs of the moment. A request often has to be made to the timber operators to ship logs of specific dimension to the saw mill, to meet expressly the rigid specifications of a given export order. Cutting to order has the advantage of not tying up funds in stockpiling. On the other hand, where it is done with gang saws it precludes log sawing for the best possible cuts and invariably produces more waste and a low quality by-product. Moreover, it does not allow for the gradual seasoning of wood, apart from the additional costs of rehandling heavy logs while selecting the right one from a pile partially submerged in mud outside the mill. These factors require serious consideration by the exporters in re-examining their methods of timber and dimension lumber production for export. 323 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

Lumber for domestic requirements is supplied by a large group of small sawmills. Their production is low in relation to effort, and the quality of the end product is inferior. There are no accurate figures available of lumber yield per cubic foot of log volume, but observations and occasional checks indicate that it is low. Bfm. yield varies with the type of machinery, its installation, diameter and species of logs, and the ability of a sawer to get the most from a log. These yields run from as low as 3.5 bfm. to about 7.0 bfm. for one cubic foot of log volume. Gang saws cutting lumber and some dimension squares are perhaps more consistent in their yields; nevertheless they are low, as evidenced in figures supplied by some of the managers, which run from 4.65 to 5.5 bfm. per cubic foot of log volume. Some plants, however, attain better yields. Most of the mills of limited capacity are equipped with circular saws and carriages, and cut-off saws, often with edgers. Occasionally such a plant is complemented with a light duty planer-matcher. A variety of hand and power winches serves to bring the logs into the mill from a nearby river bank. The majority of the circular saw rigs are too light and too underpowered for satisfactory sawing of dense and heavy tropical hardwood. Internal combustion engines of varied makes, as well as second-hand makeshift motors, supply the power. However, it is rare that all processing machinery can be operated simultaneously; supplementary power has to be provided, often by a makeshift additional engine, or else some part of the milling or processing machinery is forced to be idle. There are very few steam engines. The mission's observations of many widely scattered small mills indicate general inadequacy of working space and poor planning in the utilization of space, the location of primary and processing cutting machinery, the intake of logs, and the flow of lumber from the primary rig to the processing machinery. Virtually no space is allowed for orderly stacking of the end product. To add to the difficulties, large quantities of slabs and waste are underfoot everywhere. The dangers of crowded floor layouts are aggravated by poor and improper installation of machinery, shafting and pulleys, undersized belting, and inadequate foundations for cutting machinery, rails and carriages. All these physical factors contribute directly to the inability to produce properly sawn, well-sized and easily marketable 324 TIMBER AND WOOD PRODUCTS

lumber, under normnal competitive market conditions. In combination with an unreliable log supply, they make it impossible for the mills to sustain production over extended periods. The interruptions and shutdowns of mills even for short periods create further shortages of badly needed materials. The inability to saw properly sized lumber produces a chain reaction affecting producer and consumer alike. The manufacture of lumber that is not true to specified thickness slows up the planer work, and often stops it altogether if planking is cut too tlhick for the initial set of the blade, while if it is cut too thin the planer knife fails to plane it. Planks processed in this manner require additional working over by hand by consumers. Working with such lumber makes carpenters, supervisors, foremen and consumers alike dissatisfied. Nevertheless, government development projects, sugar estates and private enterprises alike have no alternative but to use improperly cut and unseasoned lumber. The result is higher construction costs and, later, unnecessary maintenance costs because of heavy shrinkage, cracking and warping. The purchase of lumber for house construction is usually accompanied by an order for hundreds of pounds of putty to fill the cracks formed during construction and for several years thereafter until the moisture content of the wood reaches stability. This condition was observed on several widely scattered government and privately sponsored projects. The condition of installed machinery and the general conduct of operations in the sawrmilling industry is an aftermath of rapid expansion to meet the increasing demand for wood products which began during the war. In an effort to meet this demand, new mills were established. Any type of milling machinery, whether suitable or not, was acquired at a premium price and installed in these plants. The owners of the mills, men of high business acumen, were unfortunately not very familiar with the sawmilling aspects of the business and were even less familiar with machinery requirements for the sawing and processing of tropical hardwoods. These were speculative ventures based on a continuous demand for high priced lumber. Demand for lumber and structural timbers is growing continuously and the lumber business in general does not complain except of high prices for replacement parts and machinery, which are often unavail- 325 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA able. The consumer, however, is paying prices established by the sellers' market for inferior wood products. Mill owners have no incentive to invest in costly equipment in order to improve the quality of the product under present marketing conditions, nor can most of them obtain adequate long-term credits at reasonable rates of interest. Small quantities of pit sawn lumber are produced in isolated areas where the accumulation of marketable timbers is insufficient to establish an economic logging operation. Local settlers from time to time skid a few available logs to a convenient central location and saw them by hand. This operation enhances the value of local products by employing people in the locality for longer periods and tends to decrease transportation costs of semni-finished materials. As a general rule they produce well-cut large dimension stocks and heavy planking. By and large the accuracy of hand sawn material is superior to the current production in the majority of small mills. Production of lumber by pit sawing should be encouraged, especially in isolated areas where a few people live on subsistence farms and are forced to travel long distances to find work in camps. In view of the conditions encountered in the sawmills visited, reports received from the Forest Conservator and his staff, and the FAO sawmill technologist, it is concluded that the sawmilling industry, exclusive of the mills cutting for export, will require economic assistance in order to produce better quality and increased quantities of sawn lumber, to meet domestic requirements. This economic priming should be directed towards: 1. Improving or building several pilot mills meeting minimum operational requirements for continuous production of well-cut lumber in accordance with accepted grading specifications. The location of such pilot mills should be strategic in relation to log supply and consumers' markets. It is preferable to select as a pilot saw mill an existing and promising plant, which has made progress in developing existing facilities, and is willing to cooperate in using the plant as a training center for key sawmill personnel, and to cut lumber to specified standards. Such a pilot plant, when completed, should approach or be equal to a standard no. 4 circular sawmill, that is, the plant should have 326 TIMBER AND wOOD PRODUCTS

ample working space, adequate and properly located and installed machinery, including planing equipment, sufficient power to operate the machinery, and adequate yard space for lumber stacking, 2. Making limited mechanical improvements in a number of low capacity sawvmills which are now below the staridard of those considered above but are potentially able to improve the quality and increase the quantity of the end product. Such improvements should be made in plants which are well located with regard to log supply, have reasonable facilities but are lacking in power, or in essential needs for primary cutting. The aim should be to create small well-balanced milling units, 3. Encouraging pit sawing in isolated areas by providing facilities and tools and assuring markets for pit sawn lumber cut to specifications. The mission recommends implementation of this objective and an allocation of $350,000 for long-term loans to small sawmill operators.

II. Additional Needs for Timber and Lumber

A. DOMESTIC REQUIREMENTS

Housing has an important share in the recommended five-year investment program of the mission. Well-cut timber and proper wood products will not only be used in increasing degree for this program, but also for the reclamation schemes and other projects recommended by the mission. The inland transport routes are short of good landings, boats, barges and pontoons; additional and replacement craft will be urgently needed. Revetments, docks, wharves and river landings are essential to protect river banks and to load and discharge cargoes economically. Because these improvements call for special wood, the demand thus created will have a considerable effect on the total production of this wood and special efforts may be required to produce increased quantities. The bottoms of pontoons used in sugar cane transport are made of imported white pine; if this material alone is replaced by domestic wood, an additional 350,000 board feet will be required annually. The development of new roads and the maintenance of existing ones will require, in addition to timbers and piling, lumber for concrete 327 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA forms and wood for general structural purposes. A continuous demand for sheet piling to maintain existing canals and for the construction of new ones must be met. If all projected plans are carried out in the five years, the annual increased need for lumber and structural timber for domestic use is estimated to be about 8 million bfm. or 25-30% of the current total production. This objective can be achieved through accelerated and improved logging and milling methods, and a revitalized lumber industry primed with financial and technical assistance.

B. EXPORTS

The chief items of wood product for export are long lengths of sawn and hewn greenheart squares and piling, for the construction companies of the United Kingdom, United States and the Nether- lands. Specifications for these materials are high and differ appreciably from country to country. While the United Kingdom requires squared piling, the United States invariably wants round piling and the Netherlands materials hewn by hand. All foreign importers require extremely long lengths in both squared timbers and piling. The production of forest materials with ultra high specifications poses serious difficulties in the woods because forests are not factories and trees do not grow to specifications. To select greenheart timbers to fill a foreign order of high specification requires considerable selection in the woods, ponds and log yards. This process is costly, and the needed volume accumulates slowly, apart from the fact that the diameter classes of required material are scarce in the forests, which are not too abundantly stocked with greenheart. Greenheart materials depend on foreign markets but the prices of selected materials to meet high specifications are rising continuously and soon may become uneconomical for foreign consumers in spite of the unusual quality of the timber. It is recommended that the foreign consumers of greenheart and their engineers be apprdised of the situation and requested to study the possibility of using secondary grades of squared timbers and planking of lower dimensions. These secondary grades would not command as high a price as the single grade material that is exported now but shorter lengths will permit loading of ships with standard 328 TIMBER AND WOOD PRODUCTS length hatches, and thereby expedite the movement of these materials in greater volume. Mora exports are thus far in the experimental stage, although quantities for railroad sleepers and crossarms are moving to Australia, the United States, the Netherlands and the West Indies. In the past, several important export orders failed to meet the required specifications, and this resulted in a loss of interest in these species on the part of some foreign buyers. Export materials should be rigorously inspected by an officially qualified export lumber inspector before an export certificate is issued. Wallaba telephone and high line poles are in demand abroad, but unfortunately all of the pole output is produced by hand. Because the quality of sapwood is poor, it must be removed by hand with draw knives, a slow and non-volume producing method. Recent trials of rapid machine peeling of wallaba poles in the U.S. by the British Guiana Timbers Ltd., may introduce a new method of pole production for export. Wallaba shingles contain a natural preservative and are extremely durable. They are largely exported to the West Indies. They are manufactured by hand, a slow process. The export of shingles could be increased appreciably if larger quantities were produced. At present only perfectly straight grain trees are chosen for shingle splitting. This method produces good shingles, but much waste in manufacturing. The introduction of a modern and fast cutting shingle machine and some experiments to find the best cutting method should provide volume production, utilize a greater range of wallaba trees, produce less waste in manufacturing, and reduce appreciably the cost per unit. Exports of soft hardwood logs and some other lumber have declined considerably, although inquiries and demand for these materials is still high. The depletion of some of the species capable of producing high specification material from easily accessible areas largely accounts for the decrease. Single grade high specification demand is another factor and frequent failures to meet specifications discourage some of the producers. The establishment of two grades for export products and rigorous inspection should substantially alleviate this problem. To hold and increase current markets with already known classes of timbers, and to extend the use of lesser known or 329 THE ECONOMIC DEVELOPMENT OF BRITISH GUi4NA unknown species of wood, ivill require forthright and unified action. It is in the interest of the colony to develop and use its undeveloped resources and it would be extremely advantageous for the industry to produce more materials for export. The sound development of hitherto unknown forest resources and the proper utilization of wood products under present circumstances alike require the combined participation of the government and the industry. As a start, a few species of trees most likely to succeed should be chosen, their physical properties and availability tested, and the volume economically obtainable determined. Such timber should be accurately cut to standard sizes, subjected to air seasoning in accordance with the possible ultimate use, rigidly inspected for grade and size, and then shipped in industrial size samples to prospective customers. Customers should be well supplied with descriptive matter showing both good and negative characteristics, approximate volume available at regular intervals, and the prevailing range of prices. This project is very important to the future welfare of the export trade. Since its success will depend on mutual cooperation by the interested parties, the funds needed should be underwritten by the government and the industry. The mission reconmuends: 1. Appointment of an export lumber inspector. The services of the export inspector should be financed jointly by the government and the exporting industry. The government share for five years is estimated at $10,000. 2. Participation of private industry in the promotion of export and extension of use of the lesser known woods. The estimated cost for the next five years is $55,000.

C. IMPORT REPLACEMENTS

With the exception of specialty lumber imported under quota and some essential derivatives of wood, no lumber for general use is imported. Appreciable amounts of well-cut and seasoned white pine for carpenters and industrial users are imported in spite of high prices. Although these imports have declined since the war, they still amount to about 500,000 bfm. The sugar cane industry uses pine bottoms for cane punts, and 330 TIMBER AND WOOD PRODUCTS builders in the colony prefer, pine for window and door sashes. Dur- ing the war, however, because of the scarcity of pine, domestic woods were used quite effectively. At present, although wood bottoms in cane punts are gradually being replaced by steel, the use of pine is still widespread. The use of domestic wvood for window frames is still experimental, even in large housing projects. The mission believes that well chosen, properly cut and seasoned domestic wood can satisfactorily replace scarce and costly pine in most instances. This substitution would result in a saving of one third to one half of the price of imported lumber. The problem of substitution of domestic woods for white pine can be solved if adequate quantities of good grade domestic wood are supplied. Wood should be accurately cut and seasoned. It may be useful to manufacture several pontoon bottoms and window sashes from this wood, and put them to hard use to prove their desirability to consumers. Quantities of white oak staves and headings are brought from abroad to make tight cooperage for the rum industry. Investigations should be carried out to determine whether some variety of tropical hardwood may not partially take their place. Other products such as paper, paper manufacture, cellulose materials and other essential wood products and derivatives are imported to the value of about $5.6 million. Production of some of these materials in the colony is receiving consideration at present. However, before these ideas can become realities, a number of problems must be resolved. The importation of soft hardwood logs from Surinam to supply the needs of a few scattered sawmills across the border on the British Guiana side of the Corentyne river poses no problem. The high left bank of the Corentyne river has been exploited for soft hardwoods for a long time. There is very little marketable timber left within accessible areas. The timber that is left nearby is of small diameter and it is uneconomic to skid the larger logs from further inland without winches and trucks. Tributary creeks do not carry enough water through the year to float large logs to the Corentyne river. This situation leaves several sawmills in need of logs. They buy them from the Surinam side where the river bank is low and the tributary creeks and canals permit log floating practically the whole year. Log rafts are made up in the main river and are delivered to the mills. A con- 331 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

TABLE 68

TIMBER AND WOOD PRODUCT EXPORTS, 1951' Class Quantity Destination Timber Round Greenheart ...... 237,100 U.S. Purpleheart ...... 11,967 U.K. Wallaba (poles).. 74,108 B.W.I. Others ...... 17,392 Netherlands and N.W.I. 340,567 Hewn Greenheart ...... 453,932 U.K. and Netherlands Purpleheart ...... 15,424 U.K. Others ...... 1,234 U.K. 470,590 Sawn Cedar ...... 2,155 Australia and B.W.I. Crabwood ...... 94,950 Australia and B.W.I Greenheart ...... 611,475 U.S., Netherlands, B.W.I and U.K. Mora ...... 56,450 U.S., B.W.I. and Australia Mora (sleepers).. 26,800 B.W.I. and N.W.I. Purpleheart ...... 8,938 U.K., B.W.I. and U.S. Others ...... 87,645 Miscellaneous 888,413 Split Shingles ...... 27,000 B.W.I. Other Kinds ...... 14,388 B.W.I. TOTAL ...... 1,740,908 Fuel Firewood ...... 326,200 B.W.I Charcoal ...... 1,287,360 B.W.I and U.K. 1,613,560 GRAND TOTAL ...... 3,354,468

1 In cubic feet equivalent of round timber in true measure under the bark. Source: Forest Conservator's Report for 1951. 332 TIMBER AND WOOD PRODUCTS siderable premium is paid for these logs because the Surinam Gov- ernment imposes an 11% export tax and the British Guiana Govern- ment imposes a 30% import tax. Serious consideration should be given to reduction of, or complete relief from, the import tax on primary material. Importing raw material from across the river for manufacturing is beneficial, particularly since the needed raw material is rapidly disappearing from the. accessible area. The total volume of logs imported from Surinam during 1951 was 225,367 cubic feet of log measure, of cedar and crabwood.

III. Central Manufacturing Plant

Most of the lumber produced for domestic consumption is in reality only a semifinished raw material unfit for direct use. It reaches consumers ungraded and usually only half dressed, in varying lengths and often of questionable width and still more often of uneven thickness. Before it can be used for construction, a great many carpenter- hours must be expended to rework the lumber into a suitable end product ready for nailing. This is costly, and results in additional waste which is paid for by the consumer. A reasonable assumption is that at least one fourth of the semiskilled and skilled man hours used in wood construction are spent in reworking lumber. To improve the manufacturing of lumber and to alleviate the burden borne by the consumer cannot be achieved either rapidly or pain- lessly. It will take planning, endless painstaking work to educate the individual millers, investments in machinery and, above all, much training and education of the consumers. A gradual'introduction of lumber grades with standard lengths, widths and thicknesses is essential to the lumber industry. Considerable experimental work in the field of grading has already been carried out by the Forestry Depart- ment and an FAO sawmill technologist. Grading rules have been in force for some time in the limited purchase of lumber for a seasoning yard operated by the Forestry Department, and material for export is inspected to eliminate grades below first class. The manufacture of finished lumber requires first class machinery and, for use with tropical hardwoods, the finishing machinery must be of the heavy-duty type in order to prevent the overloading of func- tional parts by imperfections in cuts produced by the head saw. The 333 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA possibility of increased production will warrant such installation in only a few mills. Most of the smaller mills will be able to manage for the time being with existing equipment, particularly if improved cutting with head saw is introduced. This improvement in cutting alone will take an appreciable overload from the light-duty planers now in operation. It is evident, however, that a central manufacturing plant, capable of performing these services and, in addition, of engaging in the seasoning of lumber and the introduction of new species, is needed. Because of lack of capital and of qualified personnel, the establishment of such a plant by private individuals does not as yet seem feasible. Further, the creation of a cooperative plant would be premature for puirely local reasons, recognized by the local lumber industry. The seasoning yard operated by the Forestry Department might, however, be expanded for this purpose. The yard was established several years ago to provide the Public Works Department with sea- 9oned lumber of better cut, to show the public the advantages of cured lumber, to popularize unknown species of wood and to introduce and demonstrate the advantages of applying lumber grading rules. These operations were of inestimable value and a success technically. However, the limited scale of operations prevented the lumber yard from supplying the quantities and the great variety of sizes and species required by the Public Works Department and other consumers. If the operational capacity of the yard were increased three to four times, and a heavy duty planer-matcher, a heavy duty resaw and cut-off saw were installed, this yard, under Forestry Depart- ment supervision, should be in an excellent position to serve as a manufacturing center for graded and seasoned lumber. The purchase of lumber for seasoning could be extended to all very small millers who cut lumber to specifications, and to all producers of pit sawn lumber. It is true that this method of contributing to the improvement of lumber manufacture will place a government department in business and in possible competition with existing enterprises. However, there are no plants in the colony engaged in domestic production which are producing lumber fit for direct consumption. The manufacturing center would not therefore compete with current production of comparable quality. Further, it should serve as an example and stimulate 334 TIMBER AND WOOD PRODUCTS other mills to improve production. Moreover, with such a center supplying well-seasoned and graded lumber in adequate quantity to the public, the lumber industry as a whole might be in a position to establish an association on a cooperative basis to operate this yard. The mission recommends a program to: 1. Increase present drying facilities of the seasoning yard and equip it with a heavy duty planer-matcher, resaw and a cut-off saw at an estimated cost of $100,000, 2. Increase by three or four times existing stocks of lumber and maintain adequate varieties of sizes and species in drying sheds at an estimated cost of $500,000. The mission recommends for the total project an allocation of $600,000. TABLE 69

RECAPITULATION OF THE RECOMMENDED INVESTMENT PROGRAM FOR FORESTRY, 1954-58 (in thousand dollars) 1954 1955 1956 1957 1958 Total

Additional Funds Forestry Department for: a. Administration ...... $ 70 $ 70 $ 70 $ 70 $ 70 $ 350 b. Timber appraisals ...... 50 50 50 50 50 250 c. Silvicultural timber stand improvement, plantations and research 54 54 54 54 54 270 Forester training program ...... 15 15 5 5 5 45 Credits to sawmill and logging industries ...... 200 150 100 100 100 650 Credit to central manufacturing plant ...... 300 200 100 - - 600 Promotion of exports, greater domestic use of wood and export inspection ...... 12 17 12 12 12 65 Services of logging engineer.. 17 17 16 - - 50

TOTAL ...... $718 $573 $407 $291 $291 $2,280 335

Industry, Mining and Power

CHAPTER 24

Industry

I. The Present Situation

In recent years industry in British Guiana has produced about 15% of the national income and employed about 15% of the labor force. It ranks second only to agriculture in value of product. Industry is closely related to agriculture and forestry, since it is primarily engaged in processing the colony's main agricultural and forest products. Thus, raw sugar, molasses and rum constitute somewhat over 50% of industrial output, rice milling contributes another -11 %, and sawmilling and related industries a further 8%. In all, about 80% of the colony's industrial output is based on the utilization of local raw materials. Somewhat over half of this output is exported. The remaining 20%o of production, largely for the local market, comes from industries using various imported materials, which find it advantageous to be located close to the point of consumption. In- dustries in this category include cigarettes, drugs, ice, soft drinks, bakery products, wearing apparel, printing and lithographing, and various types of maintenance repair work, including the repair and construction of small ships and barges. The distribution of industrial output for 1951 is shown in Table 70. Between 1948 and 1951 the value of total industrial output increased by over 40 % and generally kept pace with the over-all expansion of the economy. The distribution of output among industries has been fairly stable during this period although sugar and rice gained somewhat more rapidly than other products. Manufacturing establishments tend to be quite small. The sugar mills are the largest, but even these are of modest size when ranked with such factories elsewhere. The last census (1946) showed 40% of the industrial workers to be self-employed; another 28% worked in the sugar mills, and the remainder worked in establishments whose 339 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA average number of wage earners was only 14. The factories or producing units range in character from primitive to modern. Those for sugar, cigarettes, beverages and some others are quite mechanized; others, such as the small soap factories, tanneries and garment shops, are mostly hand operations with a minimum of capital equipment.

TABLE 70

DISTRIBUTION OF INDUSTRIAL PRODUCTION, 1951 Value So of Total Type (in million $ Value Sugar and sugar products ...... 42.0 53 Rice milling ...... 8.5 11 Other food and drink ...... 8.1 10 Lumber and wood products ...... 5.8 7 Metal trades and mechanical repairs ...... 4.0 5 Cigarettes ...... 3.3 4 Apparel and cloth articles ...... 1.0 1 All other ...... 6.6 8 Total ...... 79.3

Industry is generally owned and managed by private firms and individuals. Exceptions occur in timber processing, where the CDC has large interests, and in rice milling where a few government mills overshadow the many small private mills. Some small food processing operations are also carried on by the government. In the private sector, foreign capital and management have been responsible for the bulk of industrial development. Sugar milling and the major part of the other more advanced industrial enterprises are operated by British or Canadian firms. Local capital and management are generally confined to such products as matches, soft drinks, tex- tile products and soap, produced primarily for the local market.

II. The Industrial Environment

Development of industry in the colony has been based upon two factors: 1) the need to process primary products such as sugar, rice and timber at or near the point where they are grown, and, 340 INDUSTRY

2) the need to supply a growing local market with goods and services which either cannot ordinarily be imported (e.g. ice and repair services) or which can be produced more economically at the point where they are consumed (e.g. soft drinks and bakery products). The first factor has- already been considered in the chapters on agriculture and forestry. The second factor is more complex because it depends not only upon the existence of a market but on its size in relation to the economic size of a producing unit, and the availability of raw materials, skilled labor and capital. It also depends upon the attitudes of local and overseas entrepreneurs.

A. THE LOCAL MARKET

The local market is small in terms of absorbing the output of a single plant of economic size in many types of industry. However, in recent years the market has been growing steadily with the rise in per capita income and populatiori. At its present size, it appears large enough to support more consumer goods industries than now exist. The level of consumption of certain types of goods whose manufacture is generally adaptable to prevailing conditions in the colony is given in Table 71. Many of these products can be efficiently produced on a fairly small scale and the skills required already exist to ajarge extent in the colony. The data presented do not, of course, indicate very precisely the potential size of the local market since they cover many individual varieties which would not necessarily be economically produced in the colony. In addition to the local market there exists the possibility of exporting some types of manufactured products to the nearby British West Indies. At the present time certain drug preparations, matches, shirts and some wood products are exported to the British Caribbean area. Increased participation by British Guiana in this market must reckon with considerable competition from the more developed industries of Trinidad. The most favorable areas in which the colony can develop an export trade in manufactured products are those based upon resources more or less unique to the colony (e.g. wood products), or products that can be produced economically in industries specializing 341 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

TABLE 71 CONSUMPTION OF SELECTED MANUFACTURED PRODUCTS, 1951 (in thousand dollars) Local Apparent Production - Exports + Imports = Consumption Stockings and hose ...... none 156 156 Underwear ...... none 548 548 Boots and shoes, rubber and canvas ...... none 494 494 Boots and shoes, other kinds ...... none 1,158 1,158 Hats and caps, etc ...... none 187 187 Shirts, pajamas and other garments ...... 670 137 417 950 Medicines and drugs ...... 740 234 563 1,069 Soap, common ...... 535 162 697 Confectionery ...... n.a. 313 - in grades and types which lend themselves to small and medium scale manufacture. B. LABOR

The development of an effective industrial labor force is still in its early stages. Skilled workers are scarce, competent foremen are scarcer and' the productivity of labor is not, in general, very high. These factors, together with the growing pains of a young labor movement, impose certain handicaps on industrial growth; to a large extent, however, they are themselves a product of the present low level of industrial development. The future growth of factory industries will tend to alleviate such handicaps. Since future growth will depend in part upon the efficiency of the labor force, it is important that increased action be taken in the direction of improvement of efficiency. The mission did not attempt a systematic study of labor productivity but from numerous plant visits it was possible to draw some general observations. The importance of good supervision was especially striking. Well organized plants with competent supervisors generally had few complaints of low productivity and, in fact, often considered themselves quite competitive with operations in older and more indus- trialized areas. 342 INDUSTRY

Through the growing system of apprenticeship, private industry itself is helping to relieve the shortage of skilled labor. So also is government vocational training, both within the various operating departments and in the Technical Institute. Truly efficient perform- ance in the application of the techniques learned will have a great deal of influence upon industrial development, especially over the next few years while the supply of trained workers is still inadequate. During this period the mission feels that much emphasis should be placed on the quality of supervisory personnel. Development of local sources for this class of workers-many of whom now come from outside the colony-is of strategic significance for the growth of domestically- owvned and locally-managed industries.

C. CAPITAL

Capital and credit for industrial ventures have not been readily available in the colony. In the past, industry has been financed largely by the overseas resources of foreign firms or, in some cases, from the commercial earnings of local businessmen who have turned to manufacturing. Local capital has generally shied away from industrial ventures, and preferred to invest in commerce, mining or forestry. This situation reflects to some extent a pessimistic assessment of industrial prospects by at least a part of the local business community. This in turn has been conditioned by poor industrial prospects in former days and by the long development of a "commercial tradition" and the general lack of industrial experience among the colony's entrepreneurs. Under these circumstances the limited development that has occurred, and its heavy reliance upon overseas capital, are not surpris- ing. The story has its parallel in countless other areas. While today there is more awareness of the need for a somewhat expanded industrial activity, evolution of attitudes will necessarily be gradual. Gov- ernment action cannot bring any sudden change in the basic situation, but it can assist by improving incentives to industrial development.

D. INDUSTRIAL RAW MATERIALS

Further development of industries based upon local resources will be of obvious advantage, although the number of local raw materials 343 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA and primary products suitable for industrial processing beyond the initial stage is not large. It includes agricultural products such as sugar and coconuts, hides and skins, timber and such minerals as bauxite, gold, and clay. A number of existing manufacturing industries depend on some of these local materials, e.g. drugs, soap, leather, woodworking and jewelry. Further expansion in these industries will be influenced by growing opportunities in local and export markets. To take advantage of such opportunities it will be necessary to improve quality and uniformity of the raw materials available to manufacturers. This is especially true in the case of the woodworking and tanning industries. Well-cut seasoned lumber is almost impossible to obtain from local sources, and domestic hides are often mutilated by indiscriminate branding and careless flaying. From the point of view of raw materials the industries with the greatest scope for expansion are those based upon the colony's timber resources. Among the other materials that might form a basis for new industry is local clay-which has been found suitable for brickmaking.

E. GOVERNMENT ACTION

Government plays a most important part in affecting the industrial environment both in its contributions to general economic stability and in more specific actions such as tax and tariff policies, factory regulations, and various actions of a promotional nature, which bear directly upon the operation of individual enterprises. Until quite recently the government took little direct action to foster the growth of local industry. This policy has recently undergone changes. In common with many of the less developed areas the government since the war has begun to take an active interest in the promotion of new industries. Soon after the war. investigations were undertaken of the possibilities of establishing a number of modern industries in the colony based on local raw materials. Among those considered were glass, white cement, refractory products, chinaware and various forest products. The Colonial Development Corporation examined a number of the proposals but found only a foiestry project of sufficient interest to finance. The government was unable to interest either CDC 344 INDUSTRY or private investors in other industries for such reasons as the lack of necessary cheap power, the need to import important parts of the raw material requirements, the poor quality of some of the local materials, and, in the cases of cement and glass, the prior establishment of these industries in nearby Trinidad. In 1951 the government passed two acts to encourage the establishment of new industries through financial concessions. The first exempts new industries-or new developments in existing industries -from customs duties on imported capital equipment for a period up to five years. The second provides for a five-year tax holiday for acceptable new industries or new developments in existing industries and also allows accelerated depreciation of industrial structures, equipment and workers' housing. Similar laws have been enacted in other British Caribbean territories. Up to the present the effectiveness of this type of legislation has been limited by the fact that it does not act as an incentive to British firms, because taxes remitted in the colony are collected in Great Britain. In February 1953 a Royal Commission on the Taxation of Profits and Income recommended alterations in the present system of tax collection, giving rise to the hope that the incentive offered by the colonial laws would be made effective. The government has also, in recent years, instituted a program for the development of rural and cottage industries. One part of the program consists of the development of handicraft skills among the rural population and assistance in the marketing of the product. The other consists of the development of new processes and types of industries for rural areas. Some success has already been achieved with pilot plant operations. Investigations into other possible small industries are being carried out. The policy of the government is to turn over such developments to private operations once they show some promise of commercial possibilities.

F. FURTHER ACTION NEEDED

As the colony's economy grows, some industrial expansion will occur in the natural course of events. Considering, however, the long and deep-rooted commercial tradition of the colony, the difficulty of raising local industrial capital, the shortage of skilled labor and the 345 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

other limitations discussed previously, the mission believes that natural expansion under present conditions wiU be at a rate less than optimum. Industrial expansion would be most advantageously carried out by private individuals and firms. The policy of the government should be designed to foster conditions conducive to such expansion, especially in encouraging participation by local capital. The mission approves of the many actions that have been and are being taken towards this end, and suggests the following additional measures: 1. The provision of credit, technical assistance and market analyses for existing and prospective industries through the proposed British Guiana Credit Corporation. The lack of industrial credit on reasonable terms is a handicap to local industrial development. 2. A review of the tariff structure in order to improve the availability of foreign raw materials needed by local industry through tariff concessions and in order to afford new industries a minimum of protection. 3. The strengthening of the cottage industry program. Technical assistance could be used to good advantage in this field. The possibility of help from the UN technical assistance program should be investigated. 4. Other measures having an important bearing on industrial growth which have been discussed in previous chapters include the improvement in quality of agricultural and forest products for local industrial use, and the strengthening of local technical education.

C. SOME SPECIFIC INDUSTRIAL PROSPECTS

The mission did not investigate specific industrial prospects in detail, but from its observations it suggests the following fields may warrant further consideration. These are not intended to include all possibilities and some of the suggestions here may not prove feasible. In the final analysis the decision must rest with the individual entrepreneur. 346 INDUSTRY

Bricks. A modern brick plant operated for a short time after the war, but was closed down for lack of experienced management. Today the increased building needs and a demand for fireproof construction suggest that a revival of this enterprise should be considered. Clothing. There is room for further expansion of the local clothing industry, which already produces shirts, pajamas and similar articles for domestic and export sale. In 1951 the colony imported $180,000 worth of hats and caps. $150,000 worth of stockings and hose, and a quantity of underwear valued at $540,000. None of these items are now produced locally on a commercial scale. Mechanically knitted goods would appear to offer a prospect for small-scale manufacture. Coflee. No very great expansion of the coffee industry can be envisaged at this time, for the reasons outlined in Chapter 13. Con- siderable improvement can be effected in the processing of the present crop, however, and this could lead to a better return. The prospect of using the hull wastes as a substrate for making livestock yeast food may be worth technical study. Dairy Products. Efforts to increase milk consumption in the colony would be assisted by commercial cheese manufacture, which would probably result in a greater proportion of protein in the general diet if the cheese can be produced cheaper than present imports. Pig production-now declining-might be helped also, for in small cheese factories the by-product whey may be profitably fed to swine. Fertilizers. While the colony's present demand does not justify complete manufacture of inorganic fertilizers, local mechanical blending and sacking of imported bulk components has been shown to be feasible. A blending plant can also provide a commercial outlet for tankage, to be recovered as an abattoir by-product, and for fishmeal to be produced in the plant proposed in Chapter 13. Fibre Products. In addition to the coir fibre already available, crop experimentation has been proposed for a number of other natural fibre plants. These possibilities suggest early investigation of costs for local production of doormats, cheap rugs, table mats, bags, special cordage, hassocks and upholstered articles. Fruit Preserving. Despite readily available sugar, there is no commercial-scale processing of local fruits. Plans are being made to 347 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

manufacture guava jelly; other opportunities include jellies, jams and preserves of various fruits, alone or in combination. Operations of this kind are most successful if not restricted to the narrow harvest period of a single crop, since even the simplest capital equipment is a financial drain when idle. Leather. At present between 80%o and 90%o of the hides produced in the colony are tanned abroad. Local tanning is confined to a small production of rather crude sole leather. Tanning, now done by rule-of-thumb with roughly chopped man- grove bark, could be greatly improved by such simple measures as blending of tannin extracts in known concentrations, time and temperature control, and more careful finishing. With an expansion of local leather goods production, at least one tannery would be able to operate a splitter. Small-scale chrome tanning appears feasible also, and could find early outlets in shoemaking and domestic furniture covering. Meat Products. Livestock slaughter in British Guiana is still far too small to permit economical industrialization of many of the usual meat by-products. At this stage, however, virtually all waste can be recovered as tankage and bone meal. Until destroyed by fire, one Georgetown plant made hams and bacon. A revival of this industry may be possible today. Shoes. Imports of shoes in 1951 amounted to more than $1.5 million. The mission believes that some types can be made domestically. Local labor skills are adaptable, small-scale operations are feasible, and capital requirements are lowv. Emphasis should be placed on the most inexpensive styles, for local sale. If domestic chrome-tanned upper leather becomes available, strap-type sandals and shoes with woven leather uppers will permit greater recovery of the badly marred local hides. Also, the market should be tested for acceptance of cheap canvas-topped shoes, with soles of either leather or home-produced cordage. Stock Feeds. Although consumption of prepared livestock and poultry feeds in British Guiana is much lower than it should be to balance animal diet deficiencies, local production of these feeds is in fact inadequate to meet even the present demand. Prospects for expansion of this industry are good. Feeds should be blended on the 348 INDUSTRY basis of chemical analysis in most cases, and a feed plant equipped with a simple laboratory will be able to utilize many varied surplus materials from time to time. Imported minerals and salt licks can furnish a profitable commercial sideline to assist sales volume at first. Sweets. Consumption of sweets in the colony is comparatively high. Yet there is little local production except what is made in the home, and imports in 1951 amounted to $313,000. With domestic sugar, coconut and other materials, many types can be manufactured in small plants using fairly simple equipment. This is true not only of hard candies, suckers and fondant, but even of chocolate from domestic cacao. Wood Products. The fabrication of window frames, doors and other millwork, as well as boxes, furniture and turned articles should all offer opportunities for an expanded woodworking industry. This will be largely dependent upon a better supply of well-cut and seasoned lumber. Improved shingle manufacture is proposed in Chapter 24. A study of the market possibilities for special veneers is being undertaken. Cottage Industries. In recent years the government has instituted a program for developing rural and cottage industries. This has numerous promising aspects, and justifies continued effort. For rural industries governmental activity has centered upon development of suitable new processes, to be turned over to private operations once they show commercial possibilities; the pilot plant making a cereal and confection from paddy and guava jelly is one result of this program. In the field of cottage industries the government is providing training in handicrafts and assistance in marketing the products. A clear-cut distinction between the two activities is important, however, and the mission believes that this has been recognized in the efforts to date. Rural industries are distinguished from other industries primarily by their location in rural areas, to take advantage of an available labor supply. Several of the lines of manufacture suggested above may prove suitable for this purpose. Rural industries incur the usual overhead costs of the industrial pattern, including supervision, maintenance and amortization. These usually have greater labor specialization and a more efficient use of productive capital equipment than cottage industries. 349 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

The latter, on the other hand, use handicraft skills in the home. Lower productivity is inherent, but is at least partially offset by avoid- ing the normal industrial overhead. It is at once clear why some attempts elsewhere to combine the two types of activity into one have been unsuccessful. The mission suggests continued caution in this respect. Some kinds of production, while feasible in the home for immediate family consumption, have not proven successful as commercial cotta,ge industries. This is especially true of canning, preserving, candy-making and many other lines of food production. Even though central collection and marketing may be provided, it is impossible to maintain the uniform standards of sanitation, taste and appearance which the public market demands in such cases, and the initial sales level is seldom maintained. Experiences of this kind should be taken into account as fully as possible to avoid disappointments in the cottage industry program. Current Industrial Projects. Mention has been made, in other chapters, of a number of major industrial improvements contemplated or in progress. These include new rice mills, an ice factory, a pasteurization and cold storage plant, sawmills, stone quarries, a modernized abattoir for Georgetown, and possible abandonment of the crude boiling process for coconut oil in favor of expeller production.

350 CHAPTER 25 Mining

I. Mineral Resources

British Guiana falls into four geological areas: the coastal plain, the white sand areas, the crystalline basement and the Kaieteurian plateau. The coastal plain contains no known mineral wealth, although geologists have speculated on the possibility of oil on the shallow continental coastal shelf. The white sand areas cover large portions of the low-lying lands behind the coastal plain; where they extend inland to the base of the Kaieteurian escarpment, workable deposits of diamonds are found. Extensive deposits of bauxite lie beneath the white sand series in an area which is believed to extend north-northwest from Kwakwani, 100 miles up the Berbice river to the mouth of the Essequibo river. The crystalline basement areas which generally lie between the white sands and the Kaieteurian plateau contain the rest of the colony's known mineral wealth. In these areas gold, columbite, low grade manganese and iron ores and small amounts of minerals containing chromium, titanium and many other metals have been found. Little is known about the minerals of the Kaieteurian plateau, since its inaccessibility has discouraged both exploration and development. In addition to these metallic minerals silica sand occurs in quantities in the white sand areas and some kaolin has been found. There are no known deposits of limestone. Of the minerals, bauxite, gold, diamonds and columbite are being mined and deposits of manganese and chromium minerals are being tested for possible development. Knowledge of the colony's mineral resources is extremely sketchy. It is based largely on the general surveys of a few intrepid pioneer geologists plus the knowledge accumulated in mining operations which are, except for bauxite, mainly small and confined to the most accessible alluvial deposits. 351 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

II. The Mining Industry

Mining is an old and important industry in British Guiana. The colony, in fact, had its own gold rush in the 1890's. In the 1920's it was an important producer of diamonds and of late the colony has become the world's second bauxite producer. In recent years the mining industry, although it has only 3 % of the colony's labor force, has accounted for nearly a third of the colony's exports, 15%o of the government's total revenue, and 9% of the national income. In terms of value, bauxite now accounts for 85 to 90%o of the value of total mining output and absorbs about half the mining labor force. Dia- mond and gold mining and, since 1952, the mining of columbite make up most of the remainder. Recent production statistics are shown in Table 72. TABLE 72

PRODUCTION OF PRINCIPAL MINERALS 1948-1952 Bauxite Diamonds Gold Amount Value Amount Value Amount Value (000 tons) (000 $) (metric (000 $) (bull. (000 $) carats) ounces) 1948 ...... 1,879 9,601 36,600 1,390 20,650 761 1949 ...... 1,763 12,022 34,800 1,172 21,100 884 1950 ...... 1,594 13,825 37,500 1,345 13,750 691 1951 ...... 2,105 16,417 43,300 1,798 14,700 805 1952 ...... 2,286 22,240 38,300 1,490 24,200 1,300

Bauxite. The 2.3 million tons of bauxite produced in British Guiana in 1952 was second only to Surinam's 2.8 million, and exceeded the United States production by a half million tons. Over 90% of the colony's output is mined by the Demerara Bauxite Com- pany, a subsidiary of Aluminium Limited (the Canadian parent concern of the Aluminum Company of Canada).- This company's modern and efficient operations are centered at Mackenzie on the Demerara river, 65 miles inland from Georgetown. The remainder of the colony's output is mined by the Berbice Bauxite Company at Kwa- kwani on the Berbice river, 100 miles inland from New Amsterdam. 3,r2 MINING

Two grades of bauxite are shipped from the colony.. About 957O of the production is prepared as dried ore for making metallic aluminum; the bulk of this is sent to Arvida, Quebec for reduction. The remainder is calcined to drive off both the moisture and the chemically combined water and is shipped to the United States and Europe for the manufacture of abrasive and refractory materials. Calcined ore brings from two and a half to four times the price of dried ore per finished ton. In the future this product is expected to form an increased percentage of total production. Prospects for more complete processing of bauxite within the colony do not, at present, appear very favorable. The aluminum industry is highly integrated vertically; major producers have their own sources of bauxite, their own alumina plants and their own aluminum smelters. Therefore the problem of where best to produce the alumina and the aluminum must be considered in relation to the alternatives open to a particular company. In the case of the Alu- minum Company of Canada important factors include the cheap electric power available in Quebec and the existing metal manufacturing capacity there. Although further processing is not an immediate possibility, it is expected that calcined ore will form a somewhat higher proportion of total production in the future. There may also be some slight increases in total output over the next few years with some increased activity by the Berbice Company. Gold and Diamonds. About 85% of the colony's gold is produced by the two dredges of the British Guiana Consolidated Goldfields Limited, a British firm with CDC backing; the remainder comes from several small companies and a large number of individual prospectors locally known as "porknockers." Gold output, which was 24,000 ounces in 1952, is expected to be nearly double in 1954, when British Guiana Consolidated will have a new dredge in operation. The bulk of the diamond output is produced from small-scale workings of individual miners. Production will probably remain at around the present level of 40,000 carats for the next few years. Other Mining. Production of columbite (columbite-tantalite) has barely started; recovery of this ore will undoubtedly increase as the mining operations get under way, but the total output probably will 353 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA

not be large. Findings of manganese and chromium are being examined for possible development; but it remains to be seen whether the known deposits of manganese ore will prove sufficiently large, rich or accessible, to warrant exploitation, and the commercial value of the chromium-bearing deposits now being explored is still undetermined. Future Prospects. The prospects for a continued high rate of output of the colony's mineral industry are good. Assuming no price changes, some increase in mineral production may be expected over the next few years as a result of a slight increase in total bauxite production, an increase in the proportion of the more valuable calcined bauxite, and an increase in gold output. Possible increases in the production of other minerals are not expected to have much effect on the total value of output, nor on the volume of employment. The rate of capital investment is more difficult to foresee. The major postwar investments of the Demerara Bauxite Company appear to be about completed. However, considerable investment by the British Guiana Consolidated Goldfields is expected in connection with its plans for a small hydroelectric project and the installation of a new dredge, and there will undoubtedly be some investments in columbite mining and in connection with other exploratory work. However, barring new and unpredictable developments, it is unlikely that the rate of capital formation in the industry will be equal to that of the past few years. The mission believes that there will be a slight decline to an average rate of investment of $2.5 million per year for 1954-58 as compared with $3.2 million during the period 1948-51. This figure excludes possible investments by other potential bauxite producers, as well as for the development of manganese or chromium ores. The colony has benefited from the development of its mineral resources in terms of both direct and indirect employment, increased training in industrial skills and the opening up of interior areas, as well as in very substantial revenues to the government. Possibilities for further expansion exist and offer one of the more favorable fields for the colony's future development. The expansion of mineral development can be only indirectly aided by action by the government. The initiative must come from private entrepreneurs in the colony or from overseas. The principal way in 354 MINING which government action can be helpful is in the extension of the survey of the colony's mineral wealth and in the offer of direct inducements to the establishment of new mining enterprises. The colony now offers special inducements to new mining ventures in the form of reduced income tax liabilities during the initial five years of operations and freedom from custom duties on capital equipment for a period up to 10 years from the start of operations. These inducements to new mining ventures appear adequate. The important work of the geological survey has already been mentioned. The mission believes this should be given a high priority and recommends that the staff of the survey should be further strengthened.

355 CHAPTER 26

Power

I. Present Production

Electric power is neither cheap nor widely available in British Guiana. A large part of the colony's power requirements are produced directly by the consumers, such as sugar estates, mines, drainage and irrigation pumping stations, Atkinson airfield and many individual homesteads. Electricity is distributed to the general public only in Georgetown and environs, New Amsterdam and Bartica. Although the Georgetown system is considerably larger and more efficient than the others, its generating costs are not low. The various generating units in the colony are powered by diesels, producer gas engines, and steam engines using wood, bagasse or imported oil as fuel. As yet no hydroelectric power has been produced in the colony. Georgetown. Over 90 % of the power supplied to the general public is produced in Georgetown by the Demerara Electric Company Limited, a subsidiary of the International Power Company of Mon- treal. The company's franchise covers only the area up to five miles outside the city and does not extend across the Demerara river. Its plant consists of five steam-turbine-driven generators, including three older 1250 kw. units, a 3500 kw. unit installed in 1948, and one 5000 kw. unit in the process of installation. Wood and oil are used as fuels. Since the war the demand for power in the Georgetown area has risen at a rate of a little over 10% per year. In 1952 consumption reached 17.5 million kwh. with a peak load of about 5000 kw. The company feels that with the new unit, it will have sufficient firm capacity to meet demand for the next 10 years. Rates are on a downward sliding scale starting at 15 cents per kwh. for domestic users, with a lower rate for commerdial and industrial 356 TABLE 73

PERCENTAGE DISTRIBUTION OF POWER CONSUMPTION BY TYPES OF USERS-GEORGETOWN

Street Year Domestic Industrial Commercial Municipality Lighting Total % 70 TO 70 (000 kwh) 1947 ...... 39 31 13 13 4 10,043 1948 ...... 40 29 14 13 4 10,901 1949 ...... 42 28 15 12 3 12,739 1950 ...... 42 27 15 13 3 14,726 1951 ...... 42 25 16 14 3 16,202 1952.44 192...... 4 2441 17 13321 2 17,472,7

TABLE 74

POWER REVENUE PER KWH. BY USES-GEORGETOWN (in cents B.W.I) Street Year Domestic Industrial Commercial Municipality Lighting Average 1947. 9.2 5.2 3.3 3.0 8.3 6.0 1948 ...... 9.2 5.4 3.7 3.1 8.3 6.2 1949 ...... 8.9 5.7 3.9 3.1 8.4 6.3 1950. 9.4 6.4 4.0 3.1 8.2 6.7 1951 ...... 10.1 6.9 4.2 3.0 8.5 7.1 1952 ...... 10.4 7.9 4.4 3.1 9.0 7.6 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA users. In 1952 the company's average rate per kwh. was 7.6 cents. There were rate increases in 1948, 1950 and 1952 to meet higher fuel prices and the costs of an expansion program. An expert from outside the colony has been engaged by the government to examine the rate structure of the company. Distribution of the power consumption and average revenue are shown in Tables 73 and 74. Much of the municipal consumption is that of the Georgetown Sewerage and Water Commission which operates twenty-four underground pumps. New Amsterdam and Bartica. The New Amsterdam Town Council owns and operates the local power system. In 1951 it served approximately 1,600 customers and produced 1.3 million kwh. with a peak load of about 250 kw. The plant consists of six small units with a total capacity of just under 600 kw. In 1951 the average rate was 11 cents per kwh. Bartica is supplied with power by the Bartica Electric Company, a subsidiary of Industrial Holdings (B.G.) Ltd. The company supplied about 750 customers with 236 thousand kwh. in 1951, with a peak load of about 75 kw. Its plant has a capacity of about 250 kw. Although the average rate in 1951 was 15 cents per kwh., the company's operations were not profitable because of the small demand.

II. Potential Hydroelectric Power

There are a number of possible water power sites in the colony. They are of two general types: the rapids and low falls of the large lowland rivers such as the lower Essequibo and Cuyuni, and the falls in the upper reaches of these rivers and in the highland rivers, such as the Potaro and upper Mazaruni. One of the smaller sites on the Potaro river, at Tumatumari Falls, is being developed to supply power for gold mining dredges operating in the area. Prospects for early development of other large sites do not at present appear favorable. In the case of Tumatumari the relative ease with which the necessary structures can be built, plus an immediate demand for power in the vicinity of the falls, has made the project feasible. It is planned to construct a low dam across the head of the falls, and to install a power plant capable of producing a continuous power supply of 2000 358 POWER hp. from a 22 ft. head. It has been estimated that the capacity could be expanded ultimately 'to 8000 hp. by increasing the dam height and enlarging the generating plant. The dredges which will use power from this source are expected to operate in the area for the next 15 to 20 years. Conditions such as those favoring the Tumatumari project do not exist at other power sites in the colony. The best sites from an engineering standpoint are considerably less accessible and their development would require the construction of expensive access roads and transmission lines to centers of demand. At present, moreover, not enough is known about many of them to evaluate their real potential or the technical feasibility of constructing the necessary dams and works. A reliable assessment of the potential power available at any site depends upon the accuracy of the data on the height through which the water drops, the long-run average flow of the stream and the topography of the area. Measurement of the natural head is simple enough, and it has already been done for a number of sites in the colony. The flow measurement is more difficult, because its accuracy depends upon the length of time over which data are available. Variations in flow from year to year must be considered, as well as the seasonal fluctuations. In British Guiana there is evidence of a 14-year climatic cycle, and this suggests that extended measurements will be necessary before very accurate estimates can be made. Flow gauges are now in operation at a number of sites, but the data recorded so far cover only a few years. Topographic data will be required before any plans for dams can be made; yet it is clear that some type of dam is necessary for the development of any of the sites to insure a steady supply of power during dry seasons. The topographic information available today is incomplete and what is available indicates that the flatness of the land may make the construction of suitable dams quite difficult. Previous study groups have recommended that, to supply this information, aerial surveys be taken of the areas of potential power sites. The mission concurs with this recommendation. There is still much to be done before the real potential for hydroelectric power in British Guiana can be assessed. However, even when the possibilities are more accurately known, there may still 359 THE ECONOMIC DEVELOPMENT OF BRITISH GUIANA remain problems of cost and assured utilization of the power. The present demand in the colony is too small to justify a large hydroelectric project, especially if the final cost of power delivered to the coastal areas differs only slightly from the cost of producing it by steam or diesel plants. Considering the heavy overhead cost of the transmission lines, service roads and hydroelectric structures, steam or diesel plants may be able to produce power more cheaply; much further investigation of this subject will be needed. Under these conditions the only possibility for the development of the colony's water power resources appears to be in connection with private investment, such as that of large mining ventures or perhaps industrial users located at inland sites. The Demerara Bauxite Com- pany, in cooperation with the government, has for several years investigated the hydroelectric potentialities of the colony.

360 Index

Agriculture: 6-7, 113 ff.; five year Banking System: 100 ff.; commercial program recommendations for, barnks, 100-102, Table 17; Post 26-27, Table 3, 30-32, 51 ff., Office Savings, 102, Table 18, 222-27; historical development, 104; Agricultural Cooperative 113-15; census figures 6f, 116; Banks, 102-103 production, 117-18, Table 21; na- Bauxite: 7-8, 69-70 tural factors conditioning, 119- Beef cattle: 6-7; see also livestock 32; land use, 128-32; lines of Benham, F. C.: 93n., 133 main production in, 133-83; sugar Berbice Bauxite Company: 8, 69-70 cane, 133-45; gross value crops Birchell, H. M.: 150 n., 151 other than sugar, 1952, Table 32, Boerasirie Drainage and Irrigation 146; rice, 145-60; mechanization, Scheme: 197-99 Table 34, 152; coconuts, 160-65; Brick Industry: prospects for, 347 cacao, 166-69; citrus, 169-70; British Guiana Airways: 295-96 bananas, 170; oil palms, 170-71; British Guiana Consolidated Gold- miscellaneous crops, 172, Table fields: 354 42; livestock, 172-79; fisheries, British Guiana Credit Corporation: 180-83; special problems in de- five year program recommenda- velopment, 184-221; drainage and tions on, 37-39, Table 3, 330-35 irrigation, 193-206; land owner- British Guiana Rice Development ship and tenure, 206-209; market- Corporation: 147 ing, 209-13; credit, 213-18; De- British Guiana Timbers, Ltd.: 7 partment of Agriculture, 218-21; British West Indian Airways: 294 calculations for drainage, 228-38; Brown, 0. B.: 150 n., 151 calculations for irrigation, 239- Building Materials Industry: 69 47; see also farming, food Agriculture, Department of: 218-19; Cacao: 166-69; cultivation, Table .studies of fall harvest and rainfall, 40, 167-68; Department of Agri- 149; program on cacao, 168-69; culture program on, 168-69 research under, 219-20; Economic Capital Formation: 1948-51, 88; Division, 220-21 and rate of increase of national Agriculture, Forests, Lands and income, 89; financing of, 1948- Mines, Ministry of: 82 51, Table 10, 92; breakdown of Agricultural Cooperative Banks: foreign financing of, Table 11, 92; 102-103; under five year program, gross capital formation, 1948-51, 44 Table 14, 95; capital structure of Atkinson Airport: 294 British Guiana, 1951, Table 15, Aviation: 294-96; five year pro- 96-97 gram recommendations for, 33, Central Housing and Planning Au- 61-62; see also transport thority: 77-79 "Certified Preference and Canadian Balance of Payments: 99-100, Table Benefit Pool" receipts: 93 n. 20, 108-109 Chief Secretary, duties under new Bananas: 170 Constitution: 83 361 INDEX

Chromium: 354 213; kinds of loans, Table 49, Citrus: 169-70, Table 41 216 Civil Aviation Department: 294 Crown Lands Resumption Ordi- Climate: 119-21 nance: 206 Clothing Industry: 68; prospects Crown Land Ordinance of 1903: 310 for, 347 Currency System: 98 Coastal area, development of: 14 Customs and excise taxes: 105 Coconuts: 160 1f.; cultivation, 160- 62, Table 36; comparison in re- Dairy Products industry: 347 turns with Ceylon, 161, Table 37; Debt, internal and external, Table processing, 161-62; production 19, 105-10 and prices, 162-63, Table 38; Defense Rice Control Regulations: recommendations, 164-65 210 Coffee: 165-66; cultivation, Table Demerara Bauxite Co.: 8, 69, 354 39, 166; prospects, 347 Demerara Electric Co., Ltd.: Table Colonial Development and Welfare 73, 356-58 Grants: 1949-53; 19-20, Table 2; Departments, Governmental: 82 under five year program, 42-43, Development: problem of, 13-15; Table 4 expenditures, 1947-53, 17, Table 1 Colonial Sugar Preference: 209 Diamonds: 70, 353 Columbite: 353-54 Drainage and Irrigation: 193-206; Commonwealth Sugar Agreement: MacKenzie Tidal data, 194; and 134, 209-10 soil, 196-97; Boerasirie Scheme, Communications: 56, 297-301; rec- 197-99; Corentyne Scheme, 199- ommended program for, 57-62; 201; Tapakuma Project, 201-202; telegraph, 298; telephone, 298- future development, 202-204; lo- 301; radio and broadcasting, 301; cations of future development, five year program for, 302-304, 204-206; calculations for drain- Table 64 age, 228-36; meehanics of drain- Communications and Works, Minis- age, 237-38; calculations for irri- try of: 82 gation, 239-46; necessary water Constitution of 1928: 80 per acre for Spring and Autumn Constitution, new: 81; implications rice crop, Table 55, 243; sources of, 83-86 of water, 246-47 Constitutional Commission: 81 Controller of Supplies and Prices: East Coast Railway: see railways 212 Economic Council, proposed under Cooperative Credit Banks: 213 five year program: 29-37 Corentyne Drainage and Irrigation Economic Development: 12-13; see Project: 199-201 also currency system, banking sys- Cottage industries: prospects for, tem, balance of payments, capital 349-50 formation, debt, industry, national Credit: see balance of payments, income banking system, capital formation, Education: 11, 73-76 industry, loan issues, national in- Education, Ministry of: 82 come Executive Council: 82 Credit, agricultural: 213-15; rec- Exports: 16, 98-99, Table 16; of ommended program for, 53, 215- rice, Table 46, 186; of timber and 18; Cooperative Credit Banks, wood, 328-30, Table 68, 332 362 INDEX

Fanshawe, D. B.: 3, 4-15 Table 66, 312 Farming: acreage, 128, Table 23; Forests: 7; glossary of trees, 306 size of farms, 128-29, Table 24: Frampton, A. de K.: 208 n. management, 129-30; methods of, Fruit preserving industry: prospects 130-31; occupations in, 131, Table for, 347-48 25; rural population and employ- Furniture industry: 69 ment, 188-90; inland development, 190; extension of coastal Geology: and agriculture, 121-22; agriculture, 190-93; drainage and see also soils irrigation for, 193-206; see also Geography: 3-4 agriculture Georgetown, port of: 258-60 Fertilizer industry: prospects for, Georgetown Technical Institute: 74 347 Gold: 8, 70, 353 Fibre products industry: prospects Government: 80 ff. for, 347 Government Produce Depots: 211 Finance: see currency system, bank- Governmental Processing Factory: ing system 211 Fisheries: 180-83, Table 44; boats, Governor, duties of: 81-82 180-81; grounds, 180; ice and gear, 182; marketing, 182; inland Health: 76-77 fish culture, 182-83 Health and Housing, Ministry of: 82 Five Year Development Program: House of Assembly: 81 23ff., Table 3, 30-36; budget for, Housing: 77-79; five year program 39 ff.; sources of funds for, 41 ff., recommendations on, 28, Table 3, Table 4, 43; in agriculture, 222- 35 25; in transport, 302-304 Hutchinson, F. H.: proposals on Food: processing, 68; balance of, Boerasirie project, 198 ff. 184-86; daily intake per capita, Table 45, 184; imports, Table 46, Imperial College of Tropical Agri- 186; production and imports to culture: 127 reach food target, 1960, Table 47, Imports: 99; of wood and timber, 187; marketing, 210-12; price 330-33; of paper, 331 controls, 212-13; condensed bal- Income: comparison with neighbor- ance sheets, 1938-52, Table 58, ing countries, 87; and national 252-53; see also agriculture product, 1942, Table 12, 93 Foreign Trade: see exports, imports, Industry: 8-9, 67-69, 339 ff.; five balance of payments year program recommendations, Forestry: 307-16; five year program 28, Table 3, 32-35; distribution recommendations, 28, Table 3, 32- of industrial product, 1951, Table 34, 63-66; glossary of trees, 306; 70, 340; local market, 341-42; volume of timber, Table 65, 308; labor, 342-43; capital, 343; in- forest administration, 310-11; dustrial raw materials, 343-44; needs of Forestry Department, government action in, 344-45; 311-14; Forest Regeneration Pro- further action needed, 345-46; gram, 314-16; appraisal of re- prospects in specified industries, sources, 316; see also timber and 346-55 wood Insect Pests: and sugar cane, 141; Forestry Department: 310-14; reve- and rice, 150; and coconuts. 160- nues and expenditures, 1942-51, 61 363 INDEX

Interior: development of, 13-14; five Livestock Control Organization: 211, year program recommendations 212 for, 40 Loan issues: potential sources for, Intermediate Savannahs: 5 46, Table 5 Investment: 13, 16-17; under five Local Government and Social Wel- year program, 24; recommended fare, Ministry of, 82 forestry investment program, Logging: see timber and wood 1954-58, Table 69, 335; capital for industry, 343 Mahaicony-Abary Rice Development Irrigation: see drainage and irriga- Scheme: 6, 132, 152 tion Maize: second crops of, 233, 236 "Issues in Land Settlement Policy," Manganese: 354 by H. A. Lewis: 208 n. Manpower: 90-91; and investment program, 91 La Penitence Housing Project: 77 Manufactures: see industry Labor: 342-43; distribution of labor McCorkle, J. S.: 176-77 force, 91, Table 9; farm labor, Meat industry: see livestock 188-90 Medical Department: 76-77 Labor, Industry and Commerce, Milk: meat and milk production, Ministry of: 82 Table 43, 173; dairying, 177-78; Land: settlement and tenure, pro- marketing, 211 posals for, 53, 206-208; rights to Milk Control Organization: 178, 211 issued by Department of Lands Minerals: 7-8, prospects for, 70-71; and Mines, Table 48, 207; free- resources, 351; production of, hold titles to, 208-209; Frampton 1948-52, Table 72, 352 and Lewis recommendations on Mining: 69-70; 351 ff.; future pros- freehold land, 208 n. pects, 354-55 "Land Tenure in the British West Ministries: 82 Indies," by A. de K. Frampton: Modified Canje Project: 204-205 208 n. Motor Transport, Ltd.: 292-93 "Land Tenure in the Caribbean"; 206 n. National Income: 12, 87-90; index Lands and Mines, Department of: of real product, 1942, 1948-51, rights to Crown lands issued by, Table 13, 94; gross capital forma- Table 48, 207; and forest lands, tion, 1948-51, Table 14, 95; capi- 310 tal structure of British Guiana, Leather Industry: 68; prospects for, 1951, Table 15, 96-97; output, in- 348 come and expenditure, Table 19, Lewis, H. A.: 208 n. 106-107; balance of payments, Livestock: 172-74; beef cattle, 6-7; Table 20, 108-109 meat and milk production, Table 43, 173; in coastal plains, 174; Oil Palms: 170-71 on river banks, 174-75; in Rupti- "Ordinance to Consolidate and nuni Savannahs, 175; in Interme- Amend the Law Relating to For- diate Savannahs, 176; McCorkle ests, an": 310-11 study, 176-77; cattle breeding, 177; dairying, 177-78; improved Pakaraima Mountains: 5 production, 178-79; prospects in Population: sociological breakdown, meat industry, 348 9-10; growth of, 10; rural and 364 INDEX

urban growth, 90; rural, employ- Rice: 6, 145 ff.; cultivation prac- ment of, 188-90 tices, 147-49; proportion of direct Ports: 257-60; recommended pro- sowing and transplanting, Table gram for, 59-60; Georgetown, im- 33, 148; yields, 149-50; varieties, provements at, 258-60 150-51; fertilizers and rotation, Post Office Savings Bank: 102, 151-52; mechanization, 152-54; Table 18, 104; and five year pro- Mahaicony-Abary Rice Develop- gram, 45, 46, Table 5 ment Scheme, 154-58, Table 35; Postal system: 297-98 economic improvements in pro- Power: 71-72, 356-60; five year production, 158-60; exports, Table gram recommendations on, Table 46, 186; marketing, 210-11; as 3, 36; percentage distribution of an Autumn crop, 228 ff.; probabil- consumption by types of users- ity of rainfall during Autumn Georgetown, Table 73, 357; poten- crop, Table 52, 230-31; as Spring tial hydroelectric power, 358-60 crop, 232; necessary irrigation for Price controls: on food, 212-13 Spring and Autumn crop, Table Public Administration: 12, 88 ff. 55, 243; statistics on, Table 57, 251 Railways: 264 ff.; five year program "Rice Commodity Reports," Food recommendations on, 27-28, Table and Agriculture Organization, 3, 33; recommended program for, Rome, 1952: 147 n. 58-59; rehabilitation of, 265-72; Rice Marketing Board: 147, 210, estimated revenues, 1952-58, 215 Table 60, 271-72; estimated ex- Roads: 283 if.; five year program penditures, 1952-58, 272-73, recommendations, Table 3, 33; Table 61, 274-75; replacement by recommended program for, 60; roads, 273-82; see also transport cost of replacing railways with, Rainfall: 119-21, Table 22, 195-96; 27-2 onsructo and cost, during short wet and dry periods, 28-85, Table 62; proposed trunk Table 53, 234-35; frequency in road system, 285-87, Table 63; different months, Table 5, 242 teror and feeder roads, 287-90; Reclamations Projects, proposals road transport, 290-92, local for: 52-53 transport, 290-92e local "Report of a Commission of Inquiry transport, 292-93; see also trans- into the Sugar Industry of British port Guiana": 114 n., 133 Ruimveldt Decanting Center: 77 "Report on the Economic Position of Rum, Demerara: 9 the Sugar Industry in British Rupununi Development Corporation: Guiana," by F. C. Benham: 133 n., 131, 175; cattle, herds of, 176 134 Rupununi Savannahs: 5 "Report on Mechanization and Or- ganization of Rice Production in Secondary and Minor Industries British Guiana," by H. M. Bir- Board: 215 chell and 0. B. Brown: 150 n., Shipping: 260-62; five year pro- 151 gram recommendations' on, 27, Research and Extension Services, Table 3, 33; steamer and ferry Agricultural: proposals for, 54-55 service, 59; transport and harbor Revenues, 1947-53: 17, Table 18; in- fleet, Table 59, 261; Government vestment of under five year pro- fleet, 262; see also transport gram, 42, Table 4, 43 Shoe industry: prospects for, 348 365 INDEX

Social Welfare: five year program Taxation: 103-105 recommendations on, Table 3, 35 Telegraph system: 298 Soil: 196-97; and agriculture, 122- Telephone system: 298-301 23; proposed survey, 126-28 Temperature: 121 Soya: second crops of, 233, 236 Timber and wood: 317ff.; logging State Council: 81 operations, 317-22; output from Stock feeds industry: prospects for, Crown lands, 1951, Table 67, 318; 348-49 lumber and sawn timber, 322-27; Sugar cane: 6, 133 ff.; economic out- domestic requirements for, 327- look for, 133-34; prices and pro- 28; exports, 328-30, Table 68, duction costs, 134-38, Table 332, import replacements, 330-33; comparison cost per ton with 332,importmreacements, 3333 Jamaica, 136, Table 27; employ- central manufacturing plant, 333- ment and mentwages,waes, nd 16-37,Table136-37, Table gram,35; recommended 1954-58, Table investment 69, 335 pro- 28; production by independent T ' a farmers, 137-38; day units and opography: and agriculture, 121- wages per ton production, Table 22 29; cultivation, 138-40; fertiliza- Transport: 56, 257 ff.; recommended tion, 140; pests and diseases, 141- program for, 27-28, Table 3, 32, comparison, crop areas, various 57; ports, 257-60; inland ship- canes, 143-52, Table 30, 142; ping, 260-63; railways, 264-73; cycle age of crops, 1943-52, cost of replacing railways with Table 31, 143; recommendations roads, 273-82; roads, 283-90; on, 144-45; drainage of, 236; road transport, 290-92; local statistics on, Table 56, 250 transport, 292-93; civil aviation, Sugar Industry Welfare Fund: 78 294-96; recommended five year Sugar Stabilization Fund, and five program in, 302-304, Table 64 year program: 47, Table 5 Sweets industry: prospects for, 349 Waddington, Dr. E. J.: 81 West Coast Railway: see railways Tapakuma Drainage and Irrigation Wood products industry: prospects Projects: 201-202 for, 349

366 PUB HC207 .W57 World Bank The economic development of British Guiana; report of a mission organized by the

PUB HC207 .W57 World Bank The economic development of British Guiana; report of a mission organized by the

DATE NAP (continited fron.front flap)

The report shows how the sugar and rice culrivation of the coast can be expanded by improved techniques and transportation, and by further drainage and irrigation projects while new roads are being driven into the interior and its potentialities thoroughly surveyed. The financial and administrative requisities for British Guiana's econonilc progress are exhaustively discussed in this report, which contains the most complete description of economic conditions in British Guiana available.

Numerous maps, charts and tables document the findings of the report, which has been officially submitted to the Government of British Guiana by the International Bank for Reconstruction and Development.

THE MISSION

E. HAIRRISON CLARK Chief of Missioul Ki-NNE'ri-f A. Bos-iit Econo,ni%t

CYRi1L H. DAVwFS Ass/tant to the Chief of Misson

W. F. EIJSVOOGET Adliiser ont Drainage and Irrigation

MAURiCE GUILLAUME Ad viser on Agricultural Prodi:ction

E. ROGER HONDELINK Advliser on Transport & Coinniunicathon

JOHANNES HF.L. JOOSTEN Agriculttral Econiomist

EUGENE C. REICHARD Adviser otn Forestry

BARBARA MCLANE Secretary and Admninistrative Am vIstant

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