83
354
. PUBLIC RECORD OFFICE
Reference :-
wwmdubim.C.O.882/11
C. 63363/29 [No. 1].
No. 53.
THE GOVERNOR to THE SECRETARY OF STATE
(Received 1.41 p.m., 24th June, 1929.)
TELEGRAM.
[Answered by No. 56.]
I anticipate
24TH JUNE. Confidential. My despatch of 20th March, No. 230.*
1st October next will have been reduced to that the Colony's surplus on
Revenue for 1929-1930 estimated at rupees 103 millions plus rupees 8,000,000. 500,000. Expenditure at rupees 133 millions plus 275,000 exclusive of additional cost of new salaries scheme not yet sanctioned. Have personally revised estimates in consultation with my financial adviser(s) and heads of departments and am satisfied that substantial reductions above expenditure figures impracticable. New proposals by heads of departments severely restricted and appreciable increases allowed only in case of Medical and Sanitary Services, and Education, and where quite unavoidable and in case of pensions. Few new public works provided for. I request your general consent to my laying the following proposals before the Legislative Council with the forthcoming budget. A loan of rupees 67 millions to be raised as required for meeting extraordinary expenditure on railways and electrical works, telephones and general development purposes. Loan would provide 19,340,000 for restoration of [2 to ] general revenue of advances already made to loan accounts. Twenty-nine millions for continuation and completion of works in progress. 6,260,000 for Tangalle railway extension and 12,400,000 for development works not yet sanctioned. Preparation to be made during the coming financial year for substantial additional taxation probably including income tax and proposals to be laid before the Legislative Council with budget 1930-1931 or earlier. Steps to be taken to secure some immediate addition to the Colony's revenue by means of a surcharge of 5 per cent. on existing import duty and a small increase of inland postage rates for letters and postcards estimated to yield rupees 1,500,000 to 2,000,000 per annum in the first case and rupees 1,000,000 per annuni in the second case. These purely temporary expedients desirable in view of the Colony's commitments on account of new salaries scheme additional debt charges involved in the new loan proposal and necessity of maintaining Colony's credit as a borrower. Figures in this telegram approximate but sufficiently accurate for purposes of a general decision on policy.
I am anxious to make announcement in the above sense in my address at the opening of the Session on 4th Juno (? July) and would therefore be grateful for earliest possible reply.
C. 63230/29 [No. 8].
No. 54.
THE SECRETARY OF STATE to THE GOVERNOR.
(Sent 5 p.m., 25th June, 1929.)
TELEGRAM
[Answered by No. 55,Ț
Your telegram of 14th June.† Constitution. I am taking steps for preparation
of Order in Council extending life of Legislative Council until end of next year, unless previously dissolved.-WERB
C. 63230/29 [No. 10].
No. 55.
THE GOVERNOR to THE SECRETARY OF STATE.
(Received 2.16 p.m., 27th June, 1929.)
TELEGRAM
[Answered by No. 57.]
27TH JUNE. Your telegram of 25th June.* Constitution. My object m recommending extension of life of Legislative Council in the first instance until the end of the current year was to lix reasonable terms within which the present Council would have to come to decision, and to ensure that adverse decision would be followed by early dissolution and general election without further intervention on your part or mine. I do not, however, feel very strongly on this point.
C. 63363/29 [No. 2].
No. 56
THE SECRETARY OF STATE to THE GOVERNOR.
(Sent 6p.m., 2nd July, 1929.) ·
TELEGRAM.
[Answered by No. 59.]
I authorise you to lay before CONFIDENTIAL. Your telegram of 24th June.† Legislative Council proposals for loan on general lines indicated in your telegram, but project must be conditional upon adequate provision being made by additional taxation at early date to provide reasonable balance after meeting recurrent expenditure and service of loan.
I await your proposals as to method and date of raising loan.—PASSFIELD.
C. 63230/29 No. 11.
No $7.
THE SECRETARY OF STATE to THE GOVERNOR. (Sent 3.50 p.m., 3rd July, 1929.)
TELEGRAM.
[Answered by No. 58.]
Your telegram of 27th June. I did not think it desirable to issue succession of Orders in Council extending life of Legislative Council for a few months at a time. You have power to dissolve the Council at any time. I doubt the expediency of suggesting that the introduction of reforms must necessarily depend on prior favour- able resolution of the Legislative Council, as your telegram of the 27th June appears to suggest. If at any time you think it wise to do so, you are at liberty at your discretion to make it clear that in the event of your reaching conclusion that recommendations of Special Commission are entirely unacceptable it will be necessary for new Council to be elected to carry on pending further consideration of the question.-PASSFIELD.
C. 63230/29 [No. 12].
No. 58.
THE GOVERNOR to THE SECRETARY OF STATE. (Received 9.20 p.m., 5th July, 1929.) TELEGRAM.
[Answered by No, 601.]
CONGDENTIAL. 5th July. Your telegram of 3rd July. §. I have not as yet made any public reference to the proposed prolongation of the life of the Legislative Council. While adhering to all the recommendations in paragraph 65 of my despatch of
C. 63216;29 [No. 21; not printed.
#X. 32.
!
No. 54.
† No. 54.
! No. 55.
$ No. 57.
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO
PUBLIC RECORD OFFICE, LONDON