PART V. 27]
territories as it was able to use oxen for transport purposes and
undoubtedly for the movement of produce of ordinary value, it was
a great advantage to possess ox transport.
With regard to the suggestions made by Mr. Kirby, he noticed
that Mr. Kirby wisely used the word ** aids '’; the position in Kenya
was that motor lorries did come in free of Customs duty. The other
aspect of the case had been discussed by the Economic and Finance
Committee and evidence had been brought before that Committee
which indicated that the prime cost of fuel oils landed at Mombasa,
compared not unfavourably with the price at which similar fuel oils
were landed at South African ports. They, therefore, did not see
that a case could be made against the supplying companies, having
regard to the conditions under which they had to supply the oil; but
it was noted that the railway freight rates represented a considerable
proportion of the cost and that there was an enhanced cost in supplying
the oil to the consumer by the manner in which it was supplied. With
regard to the railway rates, he stated that as far as the Kenya and
Uganda Railway was concerned the rates compared favourably with
the South African rates and that if the administration reduced the
class rates, say by two classes, on petrol and kerosene, it would lose
a revenue approximately of £50,000 or £60,000 a year. The Economic
and Finance Committee recommended that the Railway Administration
 should consider the reduction of the rates. Substantial help
could also be afforded through carriage of oils in bulk and installations
for supply in bulk instead of in tins. One company in particular was
interesting itself in the provision of bulk supplies at important centres
and the Railway Administration was offering the necessary facilities.
It was hoped in that way, to some extent anyway, that the cost of
fuel oils would be reduced.
The other suggestion made by the Economic and Finance
Committee dealt with the Customs and Excise duties. One had to
look at the subject from the different points of view. If the Customs
duty on petrol or kerosene, or both was reduced a large amount
of revenue would be lost and it was not considered practicable to
reduce it on petrol and kerosene used for agricultural purposes without
reducing it for the whole community and a large percentage of the
total consumption of these oils was used for other than agricultural
purposes. The Economic and Finance Committee had made a
recommendation that the excise duty on petrol should be removed
and that the revenue derived therefrom should be obtained in another
way, with exemption of agricultural tractors used on farms.
Mr. KIRBY stated that transport by mechanica. means was
important in Tanganyika owing to the existence of tsetse fly which
prevented the use of oxen, but that what Mr. Holm had said with
regard to the position in Kenya cleared the matter up.
Mr. MILLIGAN said that trials had been made by a special
Committee of the Empire Cotton Growing Corporation with various
types of road transport. That Committee came to the conclusion
that the semi-caterpillar type of tractor was the most suitable for
colonial conditions. Further trials were now being undertaken in
Northern Nigeria to decide between indiarubber and metal tracks.

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