!
510
?
13
APPENDICES.
APPENDIX No. 1.
STRAITS SETTLEMENTS.
Colonial Office to War Office.
Downing Street,
Sir,
6th November, 1894.
I am directed by the Secretary of State for the Colonies to transmit to you, to be laid before Mr. Secretary Campbell-Bannerman, with reference to
40248 the letter from your department of the 29th ultimo, copy of a despatch
450 to Sir C. Mitchell, on the subject of the Straits Settlements Military Contribu- tion.
40248
456
R. H. MEADE,
No. 1a.
Colonial Office to the Governor, Straits Bettlements.
Downing Street,
Sir,
6th November, 1894, I am now in a position to inforın you of the decision of Her Majesty's Government as to the Military Contribution of the Straits Settlements for the quinquennial period of 1894-98.
2. În May 1893, I reminded my colleagues of the fact that, with the year then current, the arrangement laid down by our predecessors, fixing the contribution at 100,000% a-year, would terminate, and drew their attention to the alteration in the situation which had since occurred, owing to the fall in exchange and certain other factors.
3. It so happened that the termination of the first examination of the subject then set on foot by Her Majesty's Ministers coincided in point of time with a further sharp fall, since partially recovered, in the value of silver, which pointed to the possible necessity of reconsidering the conclusions arrived at, and seemed to indicate the expediency of deferring a final decision for some time further in order to observe what course the exchanges would take. It was, however, made plain that for the quinquennial period 1894-98 there must not only be an abandonment of the hope entertained and expressed in 1889, that the con- tribution might be increased in 1894, but that some immediate temporary relief in respect of the rate of contribution paid since 1890 might probably be granted to the Colony. These conclusions were especially disappointing at a time when Parliament was being asked to impose fresh taxation on almost all kinds and conditions of persons in a community already taxed much more heavily than the Colony which it was proposed to relieve.
4. Under these circumstances the Government, in the interests of the Colony, were justified in according the question a close and prolonged scrutiny, a scrutiny which has sesulted in its being decided to give the financial relief to the Colony in the years 1894 and 1895, hereinafter detailed. I make these remarks because I am aware that the delay in announcing the decision of Her Majesty's Government has given rise to much criticismi in the Colony.
(237)
D