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apart from Imperial purposes

that they would profer the total withdrawal of the troops from Ceylon. The Governor then suggested that Rs. 500,000 should be paid for 5 years: & War Office Committee suggested Rs. 600,000 exclusive of defensive works: the Secretary of State pressed Treasury to take the estimated cost of the troops required for colonial purposes viz Rs. 516,000. Treasury were prepared to agree if the Colony on its finances recovering would make a contribution towards the cost of His Majesty's Ships on the East Indian station. But the Secretary of State refused to agree to this: the Colony paid therefore Rs. 600,000 and specifically declined to regard any part of this as a naval contribution. In 1890 the contribution was fixed at £50,000 for 1890 and £81,750 for the next four years, averaging £75,400 which represented the estimated annual cost of the Farrison exclusive of Trincomalee. The cost of new barracks and defences (exclusive of Trincomalee) was also to be paid by the Colony.

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The 1895 Committee recommended the introduction of the percentage system of contribution. They pointed out that on the amounts paid in 1894, the sum should be fixed at 75 of gross revenue, taking into account the fact that the Railway revenue would also be assessed in gross. They also raised the question of what was to be the future maximum charge i:e. what if any charge was to be made for the Trincomalee garrison. The 1895 Committee argued strongly in favour of the importance of the coaling station to purely Colonial

interests;

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