706
PUBLIC RECORD OFFICE
سائنسا
Reference :-
C.O.882/11
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
248
reserve fund was constituted by a resolution adopted at the last meeting of the Legisla- tive Council held on the 24th August, 1925.
2. I enclose the Report of the Proceedings of the Council* with the debate on the resolution in question for your information.
3. In particular I invite attention to that part of the Treasurer's speech intro- ducing the resolution which deals with the Currency position (the last paragraph on page 10 and pages 11 and 12 of the Report) and request that you will, under Section 16 (3) of the Currency Ordinance, 1923, signify your satisfaction by telegram. 4. Provided you are satisfied with the propriety of paying $20 millions from the Currency Guarantee Fund to the General Revenue of the Colony I shall be glad you will instruct the Crown Agents to establish and control the "Opium Revenue Replacement Reserve Fund in accordance with the terms of the resolution referred
if
to above.
>>
5. I gather that as regards the $20 millions to be withdrawn from the Currency Guarantee Fund a mere transfer of investments from one fund to another in the hands of the Crown Agents is all that will be necessary, while as regards the additional $10 millions to come from the assets of the Colony, a transfer of such appropriate investments as are now held by the Crown Agents on behalf of the Straits Settlements surplus funds to the new Fund will render new investment unnecessary.
6. I suggest the 1st November as an appropriate day for the constitution of the Opium Revenue Replacement Reserve Fund, and if that meets with your approval it will be necessary to instruct the Crown Agents to credit the then accrued interest on the investments transferred to the new Fund to the Currency Commissioners' Income Account and to the General Account of the Colony respectively.
7. The additional taxation recommended by the Straits Settlements Committee. whose Report accompanied my Confidential despatch of the 20th August, 1925, was imposed by a resolution adopted at the same meeting of the Legislative Council. The speech of the Treasurer introducing the motion is on pages 18 to 21 of the Report. A special resolution dealing with the 1926 contribution to the Onium Reserve Fund will be introduced at the Council meeting to be held on the 5th October.
53916/25.
SIR,
I have, &c.,
E. S. HOSE,
Officer Administering the Government.
No. 214.
STRAITS SETTLEMENTS.
THE OFFICER ADMINISTERING THE GOVERNMENT to THE
(Confidential.)
SECRETARY OF STATE.
(Received 1st December, 1925.)
Government House, Singapore, 6th November, 1925. IN continuation of my Confidential despatch of the 22nd Septembert on the matter of the constitution of a Reserve Fund to be used in due course for the replace- ment of opium revenue, I have the honour to report that a resolution regarding regular contributions to that Fund was adopted at the Legislative Council meeting held on the 5th October, 1925.
2. The debate on the resolution is reported on pages 5 to 14 of the accompany- ing copy of the Proceedings* at that meeting.
3. It will be observed that the resolution was divided into two parts (a) accept- ance of the principle of appropriating annually a percentage of the total revenue of the Colony to the Reserve Fund, and (b) the practical application of that principle as regards the revenue of next year.
4. The resolution was carried by 20 votes to 4. Of those who voted against the resolution and addressed the Council, Mr. Simpson is the Unofficial Member elected by the Chamber of Commerce, Penang, and it appears to me that in his address he overlooks the fact that although the present may be called upon to make some sacrifices it has the opium revenue which posterity will not have to compensate for such
sacrifices.
* Not reprinted.
† No. 213.
249
Mr. Ward, a nominated Singapore Unofficial Member, also spoke against the earlier similar resolution on the 24th August, 1925. the revenue is being put out of the control of the Legislative Council is, however, not His plea that a further 10 per cent. of in accordance with the fact because the resolution has not the force of law and effect to the principle adopted can only be given annually by sanction of the Legislative Council through the Supply Ordinance.
Mr. Thorne, a nominated Penang Unofficial Member, was a signatory of the report of the Committee which was enclosed with my Confidential despatch of the 20th August* on this subject. His reasons for his volte-face do not appear to me to be very con- vincing and his reference to the refusal of the Committee, of which he was a member, to adopt a suggestion of a contribution for and in respect of 1925 is, I am assured by the Chairman of that Committee, somewhat misleading. The Committee considered two alternative proposals:-
(a) a lump sum of $25 million and an annual contribution beginning in 1925, or (b) a lump sum of $30 million, and an annual contribution beginning in 1926. The Committee adopted the latter alternative in its recommendations.
5. I have little doubt that there will always be some Unofficial opposition to the principle of putting ten per cent. of the total revenue of the Colony in reserve and I have no doubt that this opposition will increase as time goes on, especially if further revision of existing taxation is necessitated.
6. Primarily with a view to mitigating that opposition as far as possible I invite attention to the recommendation made in the concluding paragraph of the report of the Committee of the Legislative Council which I appointed to inquire into this matter (enclosure 1 to my Confidential despatch of 20th August, 1925).
7.
It is my opinion that an excellent effect would be created locally if His Majesty's Government authorized me to announce that in any year in which a contri- bution of a percentage of the total revenue of the Colony is paid into the Opium Revenue Replacement Reserve Fund a corresponding proportion of the revenue ascer- tained under Ordinance No. 64 (Defence Contribution) to be assessable to Defence Contribution will be deemed not to be so assessable.
8. To illustrate my proposal I attach a compilationt of the estimated revenue assessable to Defence Contribution in 1926 and ask that the $26,020,727.64 so calculated as assessable should be reduced by ten per cent., i.e., $2,602,072.76 in view of the contribution in 1926 of $2.813,074 or ten cent. of the total revenue of the Colony to the Opium Reserve Fund.
9. It is quite true that such a waiver by His Majesty's Government will be of no practical benefit to the Colony in the near future. the early announcement of such an intention on the part of His Majesty's Government I am, however, confident that would have an excellent moral effect. It would be clear to the public in the Colony that His Majesty's Government had decided that under no circumstances would such additional taxation as had to be imposed to enable the Government to meet its pay- ments into a reserve constituted to meet future contingencies be liable to the 20 per cent. deduction for Defence Contribution.
10. I, therefore, seek your earnest consideration of this proposal and trust that you will use every endeavour to obtain the consent of the Lords Commissioners of His Majesty's Treasury.
57491/25.
SIR,
I
I have, &c.,
E. S. HOSE,
Officer Administering the Government.
No. 215.
UNFEDERATED MALAY STATES.
THE HIGH COMMISSIONER to THE SECRETARY OF STATE. (Received 22nd December, 1925.)
(Confidential.)
Government House, Singapore, 25th November, 1925. WITH reference to my Confidential despatch Straits Settlements, Federated Malay States and Unfederated Malay States of the 20th August, 1925, and in con- tinuation of my Confidential despatch Straits Settlements of the 22nd September,
* No. 212..
Not reprinted.