711
PUBLIC RECORD OFFICE
Reference :-
TPITHIC.O.882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH—NOT TO
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18. The revenue from the Opium Reserve Fund is expected to amount at the end of 20 years to rather more than half the present figure of the opium revenue of the Colony. It is intended that the balance will be made up, as far as may be neces- sary, by additional taxation. The duties on liquors, tobaccos, and petroleum have already been increased to bring in additional revenue estimated at $14 millions per
annum.
19. Similar funds have been established in the Malay States, though of course the details of the arrangements vary according to the financial circumstances of each State.
Colonial Office,
October, 1926.
C. 10740/26 [No. 14].
No. 223.
PARLIAMENTARY QUESTION AND ANSWER.
No. 8. MR. PENNY: To ask the Secretary of State for the Colonies, whether he is aware that his Department has instructed the Government of the Straits Settle- ments to set aside 10 per cent. annually from revenues for the purposes of the Opium Revenue Reserve Funds; that opinion both in Malaya and here is strongly opposed to any allocation of money to this Fund; that the Government of the Straits Settlements, having carried the proposal for the use of its official majority, still proposes to give effect to it; and that the Colony has raised no objection to the eventual loss of its opium revenue and is quite ready to face new taxation to replace it; and for what reason his Department has taken the action referred to.-Monday, 6th December, 1926.
MR. AMERY: The Straits Settlements Opium Revenue Replacement Fund was set up by the Straits Settlements Government with my approval with a view to ensuring that the finances of the Colony should be placed on such a basis that they will not be disorganized by the shrinkage in the revenues derived from opium which is bound to occur when circumstances (at present outside the control of the Colonial Govern- ment) render it possible to give full effect to the obligations undertaken in The Hague Opium Convention, 1912, and the Protocol to the Geneva Opium Agreement of 1925. The Straits Settlements Government was also influenced by the desire of His Majesty's Government that it should be made clear to the world that the Colonial Government was not being deterred by financial considerations from taking such steps as were possible to give effect to its international obligations. The scheme for the creation of the Fund was drawn up by a Committee of Unofficial Members of the Legislative Council presided over by the Colonial Treasurer, and their recommendations, both as to the lump sum with which the Fund was inaugurated and as to the annual coa- tributions to be made to the Fund were adopted by the Straits Settlements Govern- These recommendations were based on a full review of the Colony's financial commitments and of the prospects of increasing taxation to make good the deficiency which may be expected to occur.
ment.
I am aware that there is much opposition in the Colony to the annual allocation to the Fund of 10 per cent. of the revenue of the Colony. I have also received representations from the Association of British Malaya, in this country. I am, how- ever, happy to be in a position to assure my Honourable Friend that on none of the occasions when this matter has been before the Legislative Council of the Colony has use been made of the Official Vote in the manner suggested.
C. 28070/27 [No. 12].
259
No. 224.
STRAITS SETTLEMENTS.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 9.5 a.m., 21st September, 1927.)
CONFIDENTIAL.
TELEGRAM.
[Answered by No. 225.]
21st September. Your despatch of 3rd November, Confi- dential,* there is strong unofficial opposition to continuing payment of 10 per cent of Colony revenue into the Opium Revenue Replacement Reserve Fund. This opposition is based on the ground that the Fund is already large enough to tide over the transition period after 15 years' period begins to run, but the public also entertain the suspicion that one day this accumulated Fund if not required to replace opium revenue may he diverted to some Imperial purpose. It would allay this suspicion if I were able to give official assurance that no part of the Fund will ever be utilized for any purpose which is not approved by a majority of Unofficial Members of the Legislative Council. May I have your permission to make this announcement. An early reply is requested as the budget comes before the Legislative Council on 10th October.
C. 28070 /27 [No. 13].
No. 225.
STRAITS SETTLEMENTS.
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 2.0 p.m., 24th September, 1927.) ́
TELEGRAM.
[Answered by No. 226.]
CONFIDENTIAL. Your telegram of 21st September. While I should prefer not
to bind you and my successors as regards majority of Unofficial Members I should have no objection to assurance that the capital of the Funds will not be diverted to any Imperial purpose. This would not, of course, preclude payment of defence contribution by the Colony on any sums received into general revenue from the Fund.-AMERY.
C. 28070/27 [No. 14].
No. 226.
STRAITS SETTLEMENTS.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 10.55 a.m., 28th September, 1927.)
CONFIDENTIAL.
TELEGRAM.
[Answered by No. 227.]
28th September. Your telegram of 24th September. It is anticipated that Unofficial Members will vote unanimously against continuance of con- tribution to Opium Replacement Fund. I should be very reluctant to force the matter through the Council by means of official votes. possible should be done to disarm opposition. I consider it essential that binding state- In these circumstances everything ment should be made upon your authority not only that no part of Fund will in any circumstances be diverted to any Imperial purpose but that it will not be used for any local purpose that does not receive endorsement of a majority of Unofficial Members. When drafting my telegram of 21st Septembert I had not in mind any connexion between Opium Reserve Fund and defence contribution and I should make it clear that such announcement as proposed is not taken as in any way affecting question of Colony's liability for defence contribution in respect of that Fund.
* C. 10740/26 [No. 6]: not printed.
† No. 224.
‡ No. 225.
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