Coll 1/49 'Aden. Administration and control: changes consequent on Indian constitutional reforms; transfer to HMG' [‎381r] (770/968)

for many years, before protection to Salt Industry was granted. Aden
exports salt to Bengal, Bihar, Orissa and Assam and also imports Bengal
produce to a larger extent annually. On account of this reciprocity in
trade both Bengal and Aden are able to secure cheap freight in mutual
interest. As the Works in India proper have not been and will not be
able to meet with the entire salt requirements of Bengal, Bihar, Orissa and
Assam these consuming Provinces will have to depend for the debt upon
outside sources. It must also be remembered that during the period of
monsoon salt cannot be manufactured in India. So practically for at
least four months in a year fresh imports of salt shall have to be arranged
from one of the outside sources.
The position of salt works at Aden, in our humble opinion, should
determine the future relations of Aden with India. The salt industry has
been primarily responsible for the prosperity of Aden. This prosperity
has been achieved through the terms and conditions of the leases under
which they are working. These terms and conditions are in no way
generous. The Italian Salt Works at Aden pay Rs. l,000j- annual ground
rent and 0|8j0 per ton Royalty on salt exported while two of the other
three Indian concerns have to pay each becides 0|8|0 per ton Royalty also a
ground rent of Rs. 7,000 - annually, and the third one has to pay a ground
rent of Rs. 8,770j8;0 annually, besides 0j8j0 per ton Royalty on salt
exported. The lease of the Italian concern is period of 100 years
while the leases of the Indian concerns are only for 30 yea^s^ch^Ii^addition
to this they regularly pay large sums to Aden Port Trust and Aden Settlement
Commmittee (Municipality) and suffer many other difficulties.
The Massowah, Assab and Ras-Hafun Salt Works (Italian) and the
Djibouti Salt Works (French) in the Red Sea littoral together can export
to India 150,000 tons of salt. They not only pay no royalty and taxes but
receive considerable help in the way of subsidy, protection etc., from their
respective Governments. Karachi and Kathiawar works pay no royalty.
The freight rates for Aden to Bengal, Assam and Burma are not cheaper
than freight rates from Foreign European ports because the foreign
European countries maintain special freight rates for salt in order to give
more facilities for their general exports to India. It is only because there
are rice, grains and piecegoods shipments to Aden and Arabian ports from
Bengal, Burma and Bombay and as Aden is also a coaling port that she is
not so badly off as she would otherwise be. The competition for tonnage
which is likely to become acute with the development of salt manufacture
at contiguous ports (i.e., Massowah, Assab, Ras-Hafun) is likely to threaten
the salt trade, not only of Aden but also of Karachi—Kathiawar through
a rise in freight, if protection is not provided against the subsidised foreign
salt works in Red Sea which may even divert trade to those ports.
Inspite of these disadvantages the Aden Salt Works rendered
valuable services during and since the War. Justice demands that their
services should be recognised. Aden has never faltered in making steady
shipments to India to serve the Bengal market. It supplied cheap salt
to the consumers and has been the chief bulwark against the possibility