17
A
2 The letter from this Department to the Treasury of the 26th of May copa which was enclosed in the letter to the War Office of the 7th of June, † has now been under the consideration of the Lords Commissioners for five months and Mr. Harcourt has no doubt that a reply will be received at an early date
3 In these circumstances he considers that it will be more convenient to explain at one and the same time to the Colonial Government the decisions arrived at by His Majesty's Government on the various questions at issue.
173
Official Members of the Legislative Council, it might be well that the General Officer Commanding the Troops should undertake to present the views of the War Office to the Council
8014
I am, &c..
H. BERTRAM COX
PUBLIC RECORD OFFICE
Reference :-
C.O. 882
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- | COPYRIGHT PHOTOGRAPH—NOT TO
PUBLIC RECORD OFFICE,
LONDON
32272
IR.
2.
No 1-3
CEYLON
I am, &c.,
H BERTRAM CON
COLONIAL OFFICE to WAR OFFICE
Answered by No 2015, 1
Downing Street, 23 November, 1910 I AM directed by Mr. Secretary Harcourt to acknowledge the receipt of your letter of the 3rd of November,; with regard to the military contribution payable by Ceylon, and to transmit to you, for the consideration of the Army Council, the accompanying copy of a despatch from the Governor of Ceylon upon the question.
Mr Harcourt would be prepared to accept the view of the Army Council that the ground for fixing the maximum contribution at three-quarters of the total cost of the garrison was the peculiar position of Trincomali as an Imperial naval base; and that as long as Trincomali is abandoned the maximum limit of the contri- bution should, in accordance with the arrangement of 1896, be the whole cost of the troops in the Island. The settlement of the contribution at three-quarters of the cost of the garrison was arrived at by agreement between your Department and this Office, and so long as the abandonment of Trincomali does not lead to an equiva lent increase in the garrisons of Kandy and Colombo, the agreement then come to between the two Departments would seem to support the Council's arguments.
3. Unfortunately, however, the despatch addressed to Ceylon on the 31st of July, 1896. the draft of which was submitted to the Secretary of State for War in the letter from this Department of the 27th of June, 1896, and agreed in by Lord Lansdowne, made no reservation as to a possible abolition of the maximum limit of three quarters of the cost, and the Legislature of the Colony was induced (with some difficulty) to accept the solution proposed as a final settlement of the question (although finality in such a matter must be construed with some elasticity). on consideration of a document which failed to indicate any special lack of permanence in that regard.
4 The action of Her late Majesty's Government has, therefore, placed the present Government in a very embarrassing position for obtaining a variation of this limitation, except by the free consent of the Colonial Legislature. In view of the terms of the despatch referred to it would not be practicable to force an amending Ordinance through the Legislative Council by means of the official vote. The Official Members of Council, with the exception of the General Officer Commanding the Troops, are themselves opposed to the measure, and if the Unofficial Members were united in opposition to the proposal, Mr. Harcourt could not instruct the Governor to introduce the Bill, especially at a time when a system of elected repre sentatives of the educated classes of the population in the Legislative Council has just been conceded by His Majesty's Government.
5. If, however, the Army Council desire it, Mr. Harcourt will take all possible steps to ensure that the views of the Council are placed fully before the Colonial Legislature, and will suggest to the Governor that the question should be decided by the vote of the Unofficial Members, the officials standing aside.
If the Council
are prepared to accept this proposal, Mr. Harcourt will address the Governor on behalf of the Council, and will consult the Council, should they desire it, on the terms of the despatch. He wishes me to add that in view of the opinions of the
11155 not printed. ↑ No. 176,
‡ No. 180.
§ No. 179.
• No. 174.
SIR.
No 184
STRAITS SETTLEMENTS.
TREASURY to COLONIAL OFFICE.
(Received 13 March, 1911.)
[Ansivered la, Nos. 185 and 196.]
Treasury Chambers, 11th March, 1911. I AM directed by the Lords Commissioners of His Majesty's Treasury to acquaint you, for the information of the Secretary of State for the Colonies, that on receipt of Mr. Bertram Cox's letter of the 26th May last (7307/10),* on the subject of the finances of the Straits Settlements, a copy of which, it was stated, would be sent to the War Office, my Lords invited the Army Council to favour them with the observations of the Council on paragraphs 7-20 of that letter dealing with the question of the military contribution, and they have received the reply, dated 18th January last, of which I am directed to enclose a copy.
I am also to transmit a copy of a statement subsequently furnished by the War Office showing the amounts held to be incorrectly deducted from military contribu- tion under the circumstances set forth in the War Office letter, from which it appears that the total estimated losses to Army Votes to the end of the present year amount to some £53,500, with a probable future annual loss of £16,500.
My Lords need hardly say that they view with surprise and grave concern the departure which has, as it appears, been made from obligations entered into under agreements between the three Departments-the Colonial Office, the War Office, and the Treasury- of a most formal and binding character, to which effect has been given in the Colony by statutory enactments submitted for the previous concurrence of the War Office and of this Board.
My Lords refer to the Report of the Committee on Colonial Military Contribu- tions, dated 1st May, 1895, on the proposal made by the Straits Settlements to substitute a percentage of revenue for the existing fixed sterling payments. The percentage agreed upon was 17 per cent., as recommended by the Committee. The Committee, which consisted of representatives of the three Departments concerned, stated that the percentages recommended by them (for this and certain other Colonies) were based on the assumption that no important change in the existing revenue systems of the Colonies, or in the method of bringing the revenue to account, which would have the effect of reducing the military contributions, will be authorised without the special concurrence of the Treasury.
L
In the letter to the Colonial Office dealing with this report, dated 14th June, 1895, a copy of which was sent to the War Department, my Lords pointed out that the Straits Settlements would be a great and immediate gainer under the scheme of the Committee, and that " the equitable working of the system will require that the Colonial Revenue (other than Land Sales and præmia on Leases), on which the percentage is struck should continue to be collected and brought to account in gross, as at present, and should continue to include those general factors of which it is now constituted. It follows that no measure tending importantly to reduce the amount or alter the character of the revenue of a contributing Colony ought to be adopted without the previous concurrence of the Treasury."
These principles were accepted by the Secretary of State for the Colonies, and effect was given to the arrangement by the Straits Settlements Government in Ordinance No. IV of 1896.
• No. 174.
† 10442/1895: not printed.