39
38
Department of the 4th of November, 1903*) in the form outlined in paragraph 7 of the letter from this Department of the 21st ultimo, so as first to deduct the total receipts on account of the Note Currency and then to add the profit (if any).
I am to add that there is little prospect of a loss being incurred on account of the Note Issue in future, since the receipts from investments are likely to exceed the cost of the issue.
I am, &c.,
10638
SIR
No. 37.
STRAITS SETTLEMENTS.
C. P. LUCAS.
THE SECRETARY OF STATE to THE ACTING GOVERNOR. No 88.)
Downing Street, 8 April, 1904. WITH reference to my despatch, No. 27, of the 29th of January last, I have the honour to transmit to you the enclosed copies of correspondence§ with the War Office relative to the method of treating the expenses of the Currency Note Issue in edeulating the military contribution payable by the Straits Settlements.
2. I should be glad if you would in future present the returns of revenue assessable for military contribution (similar to that forwarded in Sir F. A. Swettenham's despatch, No. 423, of the 1st of October, 1903||) in the following
$
$
manner-
Estimated revenue
Deduct
Land sales
Penang Telephone Exchange receipts
Railway receipts
Currency Note Issue receipts
Christmas Island revenue
Add-
Total deductions
Net railway receipts (if any)
Net telephone receipts (if any)
Net Currency Note Issue receipts (if any)
3. The necessity for this change of form is that if, in any year, there was a loss on the working of the telephones, railways, or note currency, that loss ought not to be deducted from the general revenue before the military contribution is calculated, since this is not contemplated by Ordinance 21 of 1899.
Lords Commissioners' reply thereto, from which it will be seen that their Lordships sanction Mr. Lyttelton's proposals.
I am directed to call your attention to the last paragraph in the Treasury letter. in respect to cases in which doubt may arise whether expenditure is of a capital or
a recurrent nature
SIR,
I have, &c.,
R. H. BRADE,
For the Secretary, Army Council.
Enclosure 1 in No. 38.
SECRETARY, ARMY COUNCIL, to the SECRETARY, TREASURY.
War Office, 31st March, 1904.
I AM commanded by the Army Council to refer to Treasury letter of the 10th October, 1900, and other correspondence relating to the military contribution pay- able by the Straits Settlements, and to transmit for the consideration of the Lords Commissioners of His Majesty's Treasury, a letter on the subject which has been received from the Colonial Office.
The Army Council share Mr. Lyttelton's views. It appears to them that the Colony should not be placed under a disadvantage in consequence of having defrayed the cost of railways and telephones out of revenue instead of by raising a loan, and they are prepared to concur in the proposal that a deduction from revenue should be allowed, in respect of interest and sinking fund at the rate of 4 per cent. on the capital expenditure already incurred, and on similar expenditure which may here- after be incurred out of revenue, in the same way as if the expenditure had been incurred out of loans; the arrangement to take effect from the 1st January last.
The Council would also propose to apply the same principle in the case of the other Eastern Colonies, and trust that their Lordships will be pleased to consent.
I am, &c.,
SIR,
R. H. BRADE,
For the Secretary to the Army Council.
Enclosure 2 in No. 38.
The TREASURY to the SECRETARY, Army Council.
Treasury, 19th April, 1904.
I HAVE laid before the Lords Commissioners of His Majesty's Treasury Mr. Brade's letter of the 31st ultimo relative to the military contributions payable (a) by the Straits Settlements and (b) by other Eastern Colonies in general.
Their Lordships agree with Army Council and the Secretary of State for the Colonies that, in cases where a Colony has included telephone or railway expenditure of a capital nature in its ordinary annual expenditure instead of resorting to borrowing, a deduction of 4 per cent. of such capital expenditure may be made for 50 years from the gross receipts of such undertakings in computing the gross revenue of the Colony, on which its military contribution is based.
Reference should, however, be made to this Department in any case in which it is doubtful whether expenditure is of a capital or a recurrent nature.
14248
I have, &c.,
ALFRED LYTTELTON.
14248
I am, &c.,
G. H. MURRAY.
No. 38.
STRAITS SETTLEMENTS.
WAR OFFICE to COLONIAL OFFICE.
(Received April 22, 1904.)
[Answered by Nos, 42 and 49.]
SIR,
War Office, London, S.W., 21st April, 1904. WITH reference to your letter, 39081/1903,† of the 21st ultimo, relative to the military contribution of the Eastern Colonies, I am commanded by the Army Council to transmit, for the information of the Secretary of State for the Colonies, a copy of a letter which they have caused to be written to the Treasury, and of the
No. 33.
Nos. 35 and 36,
1 No. 28.
• No. 29.
↑ No. 34.
No. 39.
MAURITIUS: CEYLON.
THE SECRETARY OF STATE to THE ACTING GOVERNOR AND GOVERNOR.
[Answered by Nos. 45, 48, 43, and 47.]
(Mauritius. No. 119.) (Ceylon. No. 176.)
SIR,
Downing Street, 17 May, 1904.
I HAVE the honour to inform you that my attention has recently been drawr:
to the fact that provision is made [in Section 2 of Ordinance 33 of 1897] [in Section
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