86 No. 96 ECONOMIC CONDITIONS a Kisumu and Entebbe; the Standard Bank of South Africa at Eldoret; both have branches at Kampala , Jinja, and Nakuru.

Influence of Foreign Capital.—The influence of the German capital invested in British East Africa has been to develop the trade with Germany and German East Africa through German importing firms and the shipping service of the Deutsche Ost-Afrika Linie. There would be no reason to object to such a tendency if, in the past , facilities had been reciprocated, and a similar British connection encouraged in German East Africa . There was , however , as has been shown above , no real equality of trading opportunity as between the adjacent British and German possessions, in spite of the nominal reciprocity established by commercial treaties.

Principal Fields of Investment. There are obviously opportunities for the profitable investment of capital in such important industries as flax-growing, sisal, coffee and coconut cultivation, stock -raising, grain and food production . It is a matter of importance that develop ment of all such resources should be carried on upon some co -operative scheme, and, if possible,with some State guarantee. The cotton industry of Uganda has proved immensely useful to that Protectorate because of the Government control exercised , the uniformity of the product, and the fairly constant level of prices secured. The sisal industry of German East Africa owed its success in large measure to the monopolythat its product enjoyed for the use of the German Navy. With similar encouragement (short of monopolies) the industries of British East Africa would serve to further the development of the country's natural re sources, and would materially contribute to the economic independence of the Empire.

The danger of labour shortage for new enterprises is far from negligible, and would appear to suggest that the greatestpossible encouragement should be given to the European colonist of modest means to settle in the large areas which after twenty years' experience have been found to be entirely suitable and healthy for