with what result? (b) Is he aware that a permit has been issued by the Government to a person in that area for tapping after the closing of this tavern? (c) Will he take immediate steps to cancel the permit issued for tapping in this area? The Hon. Mr. A. Ratnayake (Minister of Home Affairs): (a) The arrack and toddy taverns at Nivitigala were closed as a result of the poll held in 1928. (b) Yes. 75 trees have been licensed for tapping in Nivitigala for Neriella Estate toddy canteen as trees are not available on the estate. The issue of a permit for tapping in the surrounding "dry" area under these exceptional circumstances is in accordance with established practice. (c) Does not arise. Tapping of Trees after Closure of Taverns 27. Mr. Marikkar asked the Minister of Home Affairs: (a) Is it the practice to issue permits for tapping after taverns are closed by a poll, and, if so, under what terms and conditions? (b) Is he aware that this practice nullifies the object of the polls thus taken and will he take steps to stop it? The Hon. Hon. Mr. A. Ratnayake : (a) It is not the normal practice. Tapping is permitted only within a prescribed two-mile radius of a tavern. Where trees are not available within the two-mile radius, tapping is authorised in "wet" areas outside the prescribed limits. If trees are not available in "wet" areas within a reasonable distance of a tavern, tapping in "dry" areas in such exceptional cases is permitted. In any event no trees are licensed in any dry area if there are reasonable and substantial objections from the villagers. (b) Does not arise. Commission on Government 32. Mr. Singleton-Salmon asked the Prime Minister and Minister of Defence and External Affairs: (a) On what date was the Commission appointed to investigate the causes of losses in Government Commercial Undertakings? (b) On what date was the Report of the Commission submitted to the Governor-General ? (c) When will the Report be published for the information of this House and of the public? The Hon. Mr. Dudley Senanayake (Prime Minister): (a) The Commission to inquire into and report on the working of Government Commercial Undertakings (other than the Railway, Electrical Undertakings and the Food Supplies) was appointed on the 16th April, 1951. (b) Part I of the Report containing the text of the Report together with certain appendices, was submitted to the GovernorGeneral by the Chairman of the Commission, on the 31st December, 1952. Part II of the Report was submitted to the Governor-General by the Chairman of the Commission on the 26th March, 1953. (c) The Report is under consideration and a decision has not yet been taken regarding its publication. Mr. Singleton-Salmon: Is the report which appeared in the "Ceylon Daily News" yesterday correct that a report on this Report is awaited from the Minister of Industries before it is published? The Hon. Mr. Dudley Senanayake : The matter is to be considered by the Cabinet before a decision is taken. Dr. Perera: Might I ask the Hon. Prime Minister, whatever the decision of the Government on the Report, whether he would not consider it desirable to publish the Report for the benefit of the public? Mr. Suntharalingam: And of this House? The Hon. Mr. Dudley Senanayake : In most cases such Reports are published, but before a Report is published it certainly has to be considered by the Cabinet. of Compilation and Translation Official Terms by National Languages Commission 34. Mr. Samaraweera (on behalf of Mr. Keuneman) asked the Minister of Finance: (a) On what date did work start in connection with the compilation and translation of official terms by the National Languages Commission? (b) How many fulltime Research Assistants employed for this work (1) in Sinhalese; (2) in Tamil; and what are their salaries? (c) How many Supervisors for (1) Sinhalese and (2) Tamil have been appointed; what their is are remuneration, and how many Supervisors' meetings have been held? (d) How many advisers have been appointed for (1) Sinhalese and (2) Tamil; what is their remuneration and how many Advisers' meetings have been held? (e) What is the total number of words in (1) Sinhalese and (2) Tamil which have so far been compiled and translated? (f) What is the total cost incurred of all work in connection with the compilation and translation of these words? The Hon. Mr. J. R. Jayewardene : (a) On 12th May, 1952. (b) (1) Four each at Rs. 3,600 per annum. (2) Four each at Rs. 3,600 per annum. (c) (1) Four for Sinhalese. (2) Four for Tamil. A Supervisor is paid Rs. 25 for a meeting lasting 3 hours or more; or, Rs. 12.50 for a meeting lasting less than 3 hours. Sinhalese Section 120 meetings, and Tamil Section 128 meetings. (d) (1) Ten. (2) Nine. A member of the Advisory Board is paid Rs. 50 for a meeting lasting 2 hours or more; or, Rs. 25 for a meeting lasting less than 2 hours. Meetings are held in Units of 3 members each Sinhalese Section 48 Unit meetings; Tamil Section 83 Unit meetings. (e) (1) Sinhalese 33,000 approxi mately. (2) Tamil 36,000 approxi mately. Mr. Samaraweera: May I know whether the cost indicated includes payment made to the National Languages Commission? The Hon. Mr. J. R. Jayewardene : No. Water in Parakrama Samudraya 28. Mr. S. W. R. D. Bandaranaike (on behalf of Mr. C. P. de Silva) asked the Minister of Lands and Land Development: (a) Is he aware that although the Parakrama Samudraya is now full and the feeder channel from the Amban Ganga is discharging water into the tank at the maximum rate of 500 cusecs, the Assistant Government Agent, Polonnaruwa has allowed the yala cultivation of only 13,000 acres out of the 17,000 acres of paddy fields developed and alienated to peasant colonists ? (b) Is he aware that as a result of this "Bethma " cultivation the recently alienated lands including BOP 398 and BOP 400 will not be cultivated this season with the result that these areas will get overgrown with bushes and their development will be seriously interfered with? (c) Why cannot water be issued to all allotments without doing a "Bethma" cultivation cultivation as all the major channels will have to be kept flowing? The Hon. Bulankulame Dissawa : (a) Yes. (b) I am unable to answer this Question in the form in which it is worded. I am aware that as a result of this decision the colonists in the areas covered by blocking-out plans 398 and 400 will not be able to cultivate their lands in paddy. I am not aware that this will necessarily mean that these lands will get overgrown with bushes and their development seriously interfered with. (c) The quantity of water available for distribution during the yala season (April-August) is not sufficient for providing irrigation to all allotments in quantities sufficient for maturing a crop of paddy. It is, therefore, necessary to restrict the area cultivated in that season in paddy in order to avoid a loss of crop due to insufficiency of water. Mr. Aluwihare: Considering the recent rains, may I ask the Hon. Minister whether it is possible for him to revise this decision in regard to the whole area? I ask that question because the tanks are now nearly full . The Hon. Bulankulame Dissawa : It was calculated on the basis that the tanks were filling, and it was after that that the 13,000 acres were allowed; but I am reconsidering the matter and shall reach a decision before the 1st of May. Mr. Herat: Would the Hon. Minister please let us know whether the extent to be cultivated is decided entirely on the recommendation of the irrigation officer or is left to the decision of the cultivators and owners ? The Hon. Bulankulame Dissawa: The decision is taken after a meeting is held, but the decision on the extent to be cultivated is entirely in the hands of the Government Agent who receives the advice of the irrigation officers themselves. Details of Capacity, etc. of Parakrama Samudraya and cultivable Extent of Land under it 29. Mr. S. W. R. D. Bandaranaike (on behalf of Mr. C. P. de Silva) asked the Minister of Lands and Land Development: (a) What is the capacity of the Parakrama Samudraya when it is spilling as it is now? (b) What is the quantity of irrigation water necessary for cultivating one acre of paddy field for yala? (c) What extent of fields should be cultivated this yala season with the water that will be now available? (d) What is the total approximate extent of fields which he expects the colonists will cultivate this yala season if water is issued to all allotments? (e) Are there any defects in the distribution system already constructed and, if so, will he get them put right in time for the yala cultivation and authorise the Assistant Government Agent to issue water to all allotments? (f) If he is unable to issue water to all allotments while the tank holds enough water for doing so, will he appoint an independent commission to inquire into this very serious defect in the planning, execution and administration of this major irrigation scheme as well as the organization of the Irrigation Department and the reliability of the technical advice given to him by the him by the Irrigation Department? The Hon. Bulankulame Dissawa : (a) The useful storage of Parakrama Samudra is 65,000 acre feet and the dead storage 15,000. (b) It is estimated that six acre feet is sufficient for maturing one acre of paddy in the [Hon. Bulankulame Dissawa] yala season. (c) It is considered that about 13,000 acres of field may be successfully cultivated in paddy during this yala season. (d) Probably 17,000 acres. (e) I am not aware of any serious defects in the distribution system. Any minor defects are being put right as and when they arise. (f) In view of the above Answer, the appointment of a commission will not serve any useful purpose. Construction Works on Minneriya Tank and Elahera Channel 30. Mr. S. W. R. D. Bandaranaike (on behalf of Mr. C. P. de Silva) asked the Minister of Lands and Land Development: (a) Are defects in the construction works or delays in completing such work in the Minneriya Tank and Elahera Channel not preventing the Irrigation Department from allowing all the water in the Elahera Channel from flowing into the Minneriya Tank and filling it? (b) Has the wastage of water caused by the fancy experimental circular spills constructed in the Elahera Channel been stopped now? (c) What extent of land in the Minneriya Colonization Scheme will be cultivated for the yala season this year and how much will be abandoned by order of the Assistant Government Agent? (Constitution) Order in Council, 1946, to be absent from the Sittings of the House for a period of three months from 28th April, 1953."―[Hon. Dr. C. W. W. Kannangara.] LEAVE OF ABSENCE: Dr. V. R. SCHOKMAN Resolved: "That Dr. V. R. Schokman, Appointed Member, be granted leave under section 24 (1) (e) of the Ceylon (Constitution) Order in Council, 1946, to be absent from the Sittings of the House for a period of three months from 28th April 1953."[Hon. Dr. C. W. W. Kannangara.] ECONOMIC CONDITIONS PREVAILING IN CEYLON Mr. Speaker: The Hon. Minister of Finance will now make a Statement. The Hon. Mr. J. R. Jayewardene : Last month I gave an undertaking to the House that I would make a statement on the economic conditions prevailing in Ceylon today. The year 1952 has been a difficult year not only for Ceylon, but also for many of her neighbours in SouthEast Asia, as well as countries so far away as Australia and New Zealand. The boom conditions that prevailed in 1950 and 1951, and the disappearance of those conditions in 1952, created similar problems for Governments of these countries. Conditions in neighbouring countries. The Government of India is confronted with an overall deficit which has increased over and above the figure visualised in her new FiveYear Plan. In 1953-54 financial year the provisional overall deficit exceeds all her available cash balances. Pakistan too which had a record surplus in the 1952-53 financial year, found it reduced to a deficit in the new financial year, and the Government had to resort to additional taxation to produce a surplus of Rs. 14 lakhs. In 1952 she drew down her external assets from Rs. 148.17 crores to Rs. 60 crores, that is, by approximately 60 per cent. In Indonesia, the Finance Minister recently commented on the sharp drop in Indonesia's foreign trade as a result of a slump in the world prices of nation's chief exports, viz. rubber, tin, tea and copra, and reported an increasingly adverse balance of payments and dwindling foreign exchange reserves. In Australia, her sterling assets, which were £A.843 million at the end of 1951, fell to £A.362 million in June, 1952, this is by approximately 60 per cent. Let us consider the economic conditions in Ceylon as compared to the conditions in which her neighbours found themselves in the past few months. Conditions in Ceylon Our external assets were Rs. 766.7 million on the 31st March, 1953. It is the reduction of these assets, the causes of this reduction, and the ways and means of reducing the rate of decline which have caused us some anxiety. In 1952 they fell by nearly 30 per cent. These assets rose to a maximum of Rs. 1,208.6 million in January 1952, from Rs. 913.3 million in the first quarter of 1948. Conditions began to change in the second quarter of 1952, and since then there has been a rapid fall. Some of the causes for the decrease in our external assets are— (1) the decline in the prices paid (2) the rise in the prices paid for (3) the transfer of monies Rs. 1,904 million in 1951 to Rs. 1,502 million in 1952. Import prices, on the other hand, averaged 8 per cent. higher in 1952 than in 1951. The price of imported rice, the largest single item in the import bill, was 38 per cent. higher in 1952 than in 1951. The value of imports also increased from Rs. 1,559 million in 1951 to Rs. 1,702 million in 1952. The trade surplus of Rs. 345 million in 1951 became a trade deficit of Rs. 200 million in 1952, and the index of the terms of trade for the year as a whole was 75 as against 104 in 1951 and 105 in 1950. Appendix 'A' shows the totals of our balance of payments figures for 1950, 1951 and 1952. Appendix 'B' gives the Balance of Trade figures, shewing a trade deficit of Rs. 70 million from October 1952 to March 1953. The fall in our export prices and the higher prices of imports, which were chiefly responsible for the decline in our external assets, were due to factors outside Ceylon's control. Mr. Suntharalingam: Question! The Hon. Mr. J. R. Jayewardene : The Rubber-Rice Agreement with China has, however, established for a time the price paid for our sheet rubber above world price, and the price we have to pay for a portion of our rice imports, below world price. We have also attempted, by the fixing of ceiling values for imports and by the imposition of increased import duties, to exercise control over the value and volume of imports that come into Ceylon. I should like, however, to mention that of the Rs. 1,700 million worth of articles imported in 1952, Rs. 1,400 million represented essential imports, such as food, clothing, building materials, chemicals, vehicles, and so on. Of the (4) Government's overall cash balance Rs. 300 million, almost Rs. 200 Mr. C. Suntharalingam (Vavuniya): Fifth cause, rake's progress! EXPORTS AND IMPORTS The Hon. Mr. J. R. Jayewardene : The income derived from exports declined by 21 per cent., that is, from REMITTANCES ABROAD There has been an increase in the year 1952 of the remittances of monies abroad as a result of the relaxation of Exchange Control measures in September 1951 during the boom |