PUBLIC RECORD OFFICE

Reference :--

ETC.O. 882

|ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

5 PUBLIC RECORD OFFICE, LONDON

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(b.) In 1890, 1891, 1892, 1893, the Colony to pay in sterling, or, if so agreed, in dollars at the Treasury rate of exchange, a round yearly sum of 100,000l., which includes the ordinary repair and maintenance of military works and buildings: a service which will be transferred from the civil to the military authorities on the 1st January 1890.

(c.) During the five years 1889-93 the Colony to pay for the construction of all barracks, additions to barracks, or other buildings required for the above-mentioned garrison, paying lodging allowance when quarters are not furnished.

(d.) The Colony to provide its own armed police, performing the same duties as hitherto, and to bear the cost of militia, if raised, and volunteers. The cost of local "regulars" which form part of the garrison, is covered by the contribution of 100,000/.

(e.) This arrangement to be revised in 1892, or at latest early in 1893, and if in the mean while necessity should arise for further defensive works, or an increased garrison, the incidence of the charge to form the subject of separate and special consideration.

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6. If these payments are made, Her Majesty's Government will provide the above-mentioned garrison, and maintain it as nearly as possible at the full strength, allowing for variations of reliefs and similar matters.

7. Before stating the reasons which have led Her Majesty's Government to the above decision, it will be convenient that I should briefly review the past history of the military contributions of the Colony.

8. You are aware that before the transfer of the Straits Settlements from the Indian to the Imperial Government this step had been urgently pressed upon Her Majesty's Government by the inhabitants of Singapore and the other Settlements; that the transfer was the subject of correspondence extending from 1858 to 1866; that Sir Hercules Robinson was in 1863 employed to report upon the financial position of the Settlements, for, as stated in his instructions from the Duke of Newcastle, "under no circumstances "would Her Majesty's Government be prepared to sanction any Imperial expenditure towards either the civil or military charges of the Settlement," and that Sir Hercules Robinson reported that "the three Settlements, if incor- porated into one Colony, would be in a position to defray their own expenses, "civil as well as military, without any charge on the Imperial revenues.'

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9. The transfer having been agreed to in principle upon the above basis, it became necessary to determine the strength and the cost of the garrison for which the Colony would provide the funds. The strength was eventually fixed at two batteries of Royal Artillery and six companies of Ceylon rifles, for which the Colony was to pay 59,3007. At the same time one wing of a European regiment was, for sanitary reasons, to be brought from Hong Kong, but as it was liable to be removed for Imperial purposes, it was to be main- tained at Imperial cost, including the maintenance their own barracks, the cost of maintaining other military buildings being undertaken by the Colony. This arrangement was to be revised after five years.

10. This arrangement contemplated a reduction of the then existing garrison as maintained under the Indian Government, but the necessary movement of troops was not carried out. The European wing was not detached from Hong Kong until the year 1869-70, and in lieu of the Ceylon rifles, who were never raised, a regiment of native Indian troops was retained, with the result that the cost exceeded the 59,3001. paid by the Colony. Correspondence ensued as to the proper composition of the garrison, and a committee appointed in 1871 recommended that the garrison should consist of—

1 Regiment European Infantry, 916 all ranks;

1 Battery Royal Artillery, 103 all ranks ;

which, with staff, engineers and departments, they estimated to cost 91,5957, of which the Colony should pay 51,595., the Imperial Exchequer still maintaining one wing of the European regiment, which might be removed if required for operations elsewhere.

11. The report of this Committee is in your possession, and you will remember that the substitution of European for native infantry was conditional on the Colony providing a body of police to perform those duties which cannot be undertaken by European troops in a tropical climate; and that one battery of artillery was thought sufficient in connexion with the works for the defence of the harbour, provided that the Colony undertook to raise and train a force of about 150 natives capable of assisting the regular artillerymen in working the guns. These works, to resist casual attack from seaward, with their armament (including torpedoes) were estimated to cost 30,000, and were to be provided by the Colony, which was also to bear the cost of maintaining existing works and buildings (including the barracks for all European troops), and of erecting new barracks at Penang and Malacca.

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12. Her Majesty's Government accepted the recommendations of the Committee, and required the Colony to carry them out, notwithstanding a protest from the Legislative Council. And as these recommendations have not since been revised they still continue in force; the Colony, in compliance with them, has duly maintained all existing works and buildings, and has paid the nominal amount of 51,5951. a year, reduced to 50,145. since the withdrawal of the Royal Engineers in 1873. You will understand that I use the word nominal," because the actual payments, having been made in dollars at the rate of 48. 3d., have, from 1876 inclusive, fallen far short of the above amounts. The Colony, however, for reasons which I need not enter into, did not provide the works and armaments at a cost of 30,000%, and has not raised and trained the 150 native artillerymen, and the consequence is that, in addition to the sums underpaid owing to the nominal rate of the dollar, the Colony has up to the present time remained in possession of a further very large sum, which, under the arrangement of 1871, it was contemplated that it would contribute to its own defence.

13. This arrangement of 1871 has now become inadequate for the present circumstances of the Settlements; but in proceeding to consider how the needs of the future are to be met, is right that I should remind you that that arrangement did not purport to relieve the Colony from the obligation of providing for its military expenditure which attached to it as a condition of the transfer in 1866. There has been considerable difference of opinion as to the extent of that obligation, and Her Majesty's Government must be understood not to abandon their views, although they do not at present call upon the Colony to provide the whole cost of the increased garrison. They must, however, press their present demand, and apart from any question of special agreement affecting the Straits Settlements, I desire to draw your attention to the following considerations.

14. Singapore is an important commercial centre, and the chief Settlement of a Colony which in a comparatively few years has risen with great rapidity to an almost unexampled height of mercantile prosperity, as is evidenced by the volume of its imports and exports. The returns for 1857 are incomplete (P.P. of 1862, No. 259, page 11), and Sir Hercules Robinson, in his report for 1863, does not give any returns for that year; but the following results can be shown from the Blue Books:-

1868, Exports and Imports 1887, "

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80,113,564 263,664,132

The population, which was shown by the census of 1866 to be 273,000, hæd in 1887 risen to 587,000 souls.

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15. It is evident that the prosperity, I may almost say the existence, of the Colony, and the welfare of this large population depend upon the con- tinuance and security of its trade with other places. If the trade is secure, the prosperity may be expected to continue and increase, and the first instincts of self-interest would lead the community to make every effort to protect and defend their trade.

16. The present defences of Singapore, with their powerful armament, will suffice, in the opinion of Her Majesty's professional advisers, to afford the necemary protection against any attack likely to be made upon it; but I

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