80 (No. 96 ECONOMIC CONDITIONS action to promote trade, internal and foreign. Domestic trade, though not the primary concern of the settlers' societies, is nevertheless fostered by the Farmers' Associations of Naivasha, Lumbwa, Limoru, Kyambu , Ruiru , Ulu , and Gwas Ngishu (Uasin Gishu ); the Planters ' Associations of Busoga, Singo District, and Uganda ; and the Associations of Coffee Planters, Coast Planters, Sisal Growers, Maize Growers, Bee keepers, and Pigbreeders.

Foreign Firmsand Companies.—The capital invested in the banks, the lands and townships companies, the plantations, the hotels, engineering works and motor garages, trading syndicates, trust associations, insur ance companies, and shipping and forwarding firms was found partly in Indiaand other British possessions, but mainlyin Great Britain . French, Portuguese, and Italian interests are not extensive . The German firms before the war, though comparatively few in number, had powerful backing and influential connexions: Hansing and Co. , who acted as agents for the Char tered Bank of India , Australia , and China, and O'swald & Co. were specially remarkable for the extent of their business throughout all East Africa.

Methods of Economic Penetration . — The most effec tive method of commercial penetration of a distant country like British East Africa is to secure a monopoly of the shipping lines serving it, and thus bar, or at least penalize, the import of goods of foreign manufac ture. Such a monopoly existed before the war in German East Africa ; for British lines serving that country had , under pressure of a politico- commercial character, been forced to withdraw from German ports.

The method, however, found no favour in British East Africa, which , true to the principle of unrestricted trade , welcomed the Deutsche Ost-Afrika Linie, and gave equal facilitiesto German and British import and exportfirms. In addition to free entry to the British Protectorates, German trade had the benefit of reduced freights on German State railways , of through bills of lading from the interior of Germany. of rebates allowed by German firms on East Africa produce shipped by the