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. -2- } and empl Mboya explained that up to the end of August this year Kenya had lost 322,060 man-days of production as a result ef 278 strikes involving 78,000 workers. But between the reaching of agreement over strike issues in June and the sipn- ing in mid-September of the Industrial Charter, Kenya suffered yet another strike +- this time a nation wide one which affected virtually all African teachers, plus a few Asians and Europeans who are in meabership of the Kenya National Union of Teach- ers. The strike, called on eight counts, including the claim for a basic salary of B20 per month (at that time it was about BLO per month), a free pension scheme and a unified teachers’ emplomment service, involved hetween 15,000 and 20,000 reachers for a threc week period. The teachers reluctantly accepted a compromise of about half their original desands, which means a gereral increase in salary of between 74% and 12%, although some will benefit by as much as 20%. The Pinauncial Position In the course of negotiating with the teachers the government mide a significant statcxent on Kenya's general financial position: "The vhole question of the teacher's strike must be considered egainst the back- ground of the Government's oversll financial pesition and of the further burdens which the sovernmont will have to assume on Independence when grent~in-aid will not be availcble towards meeting norual recurrent expenditure. "The deficit of the presents 1962/63 budyet is some 42,500,000, part of which Telates to special items such as food and famine relict. The basic deficit on Kenya's normal recurrent expenditure now covered by grant-in-aid -- is 2600,009, essuming thet the 1962/63 revenus estimates will be achieved -- which, on the basis ef receipts in the first two months of the year, will not be the case. “with the national income not rising, revenue at existing rates of taxation is more likely to fall than to rise. The Goverment facing a prospective deficit on normal recurrent expenditure to be net from local resources in 1963 of some $3,000,009, and a much greater figure in the following year..." Security Yet in spite of the major events, both negative end positive, oceurring in the industrial field and in spite of this sobering statement of our economic pesition, it was the security position which has been uppermost in many people's minds during the last few mouths. ho the Mau hou emergency ed officially in 1958, there Lave been a num ber of cores of “dilerol" esthiog Prevght to the courts in tho last few years, In 1960 a now subversive or yay the J woty, Was broushnt to the notice of the Retire public. nO 72 poopie believed to be nected with the LEA were ace rested et ther tis bus in spite of efforts by the security ferces the organises gid nor die. At the end of J a new vish of o@thiney breke cue {tn the Kiambu forest pares, eithin «© fownfles of tiatrooi. The oaths, often administered to innocent people a@yainet war wilky be lie Cavers €@ secrecy, on fear ef decth, with resaids to the actavitacs of the ma inl to teke part in general ant activither,