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PUBLIC RECORD OFFICE

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C.O. 882

PUBLIC RECORD OFFICE, LONDON

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reduction shall be temporary only, as the Committee suggest, and subject to reconsidera- tion in the event of the return of more prosperous times, or whether arrangements be made for permanently lowering the payment on this account, is a question which need not necessarily be decided at the present moment.

7. In view of the great sacrifices which have been already made in other directions, Lord Derby considers it absolutely necessary that the present sum should be reduced by at least one-third, amounting to Rs. 413,300, and that in 1884 and the succeeding years, the Colony should not be liable for a larger sum than Rs. 826,700.

8. His Lordship must leave to the Lords of the Treasury to settle, in conjunction with the War Office, the manner in which this reduction shall take effect. He can only state that he agrees with the Committee in considering that the charge of 1001. for each European soldier is too high, and that the staff maintained in the Colony is disproportionate to the strength of the garrison.

9. The late Governor states that he is unable to recommend that the actual number of the English troops should be diminished, but his successor, who will shortly assume the Government, has been directed to give his special attention to this point, and to consider, with his Executive Council, the possibility of reducing the garrison, or replacing at least a portion of it with a less costly Indian force.

The island already possesses a carefully drilled police force, and has shown its willingness to take part in its local defence by the recent establishment of a volunteer force, at present numbering about 900 men.

upon

Any measure, however, involving either the reduction of the English garrison or its after replacement, in whole or in part, with other troops, can only be decided full deliberation and correspondence, and in the mean time it is absolutely necessary that immediate relief should be given in respect of the crushing burden laid on the Colony in its military contribution.

10. A copy of this letter has been forwarded to the War Office, in order that the authorities in that department may advise their Lordships upon the military bearing of the question; and I am to request that immediate attention may be given to this letter.

The Secretary to the Treasury.

I am, Sir,

Your most obedient servant,

(Signed) R. A. Meade

ל

No. 357.

SB,

5

No. 2.

Downing Street, November 1, 1883. I HAVE had for some time under my consideration, the Report of the Select No. 156, 14th

April,onclosing Committee of the Legislative Council of Ceylon appointed to inquire into the expenditure copy of peti of the Colony, and the possibility of effecting any retrenchment in it, in view of the ions respect financial depression at present existing in the island.

ing the pro-

the assistant

of

posal to abolish any of

I have also carefully considered the able and exhaustive Despatch (No. 155 the 14th of April) in which Sir J. Longden has submitted his views upon the various Negombo. points contained in or connected with the Report.

No. 158, 14th April, enclosing Mr. Rama Nathan's die-

sent from some of the Com- mittee's recom- mendations.

No. 159, 14th April,enclosing memorial from

to proposed

2. In dealing with these papers, I shall include in my observations other despatches Civil Service as from him which relate to the same subject, and can therefore be most conveniently reduction of disposed of at the same time. These despatches are noted in the margin.

unlarios.

No. 180, Slat April, contain- ing proposals for relieving the Govern

ment of part of the medical expenditure

No. 206, 2nd

from Mr. Blair

3. The main question at issue is in what way an equilibrium between the receipts May, anolodiag and expenditure of the Colony can best be restored and maintained, and I shall address copy of a letter myself to this question in the first instance, reserving for a later part of this despatch, as to proposals some notice of suggestions which have incidentally been made for the general improvement for reducing of the administration.

the education

Tots.

No. 234, 16th May, enclosing Mr. Dickson's) scheme for reorganising

the Civil Bervice.

temporary

4. It appears to be generally anticipated that the present difficulties are likely to be Depression temporary only, and that after the lapse of a few years the growth of new enterprizes only. will restore to Ceylon at least some measure of her past prosperity. What is now required, therefore, is to devise the means of meeting the deficit which, unless special measures be taken to prevent it, must in all probability be expected to burden the Colony for some time to come. In the words of the Committee "temporary relief in Page 15 of "the present is the urgent requirement of the day.”

print.

5. It is not easy, however, to determine what is the actual deficiency of Revenue Amount of for which it is necessary to provide.

66

dedois to be

met.

view.

In the second page of their Report, the Committee state that, roughly speaking, the 1. Committee's amount of retrenchment to be aimed at "as regards the present, may be taken at a sum of Rs. 500,000 required to ensure the Colony against deficit, leaving no margin available for irrigation and other works of improvement," and in the following paragraph they estimate that the Colony will incur a further expenditure of Rs. 400,000, so that the total amount of the deficit, according to their view, is Rs. 900,000.

To meet this they expressly recommend only retrenchment to the amount of Rs. 397,740, and increased revenue to the amount of Rs. 201,650; but they further Page 18 of press strongly for a reduction of the military contribution.

print.

Mr. Dickson, in his forcible memorandum dissenting from the general views of the 1. Mr. Disk- Committee, has entered into greater detail with regard to the probable deficit, and he's view. calculates that during the current year, a deficit of Rs. 500,000 may be anticipated. print

Page 39 of

In 1884, Rs. 860,600; in 1885, Rs. 1,056,000, and in 1886, Rs. 1,110,000. Turning to Sir J. Longden's Despatch, I fail clearly to understand what is the sum 8. The (to- total of the deficit which he anticipates. He states that "the public expenditure is "authorized by law for the present year is Ra. 12,994,856, being less than the

Paragraph 16.

A 3

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