J
371
PUBLIC RECORD OFFICE
Reference :-
C.O.882/11
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
PUBLIC RECORD OFFICE, LONDON
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4. The War Office however expressed themselves as prepared, with Treasury sanction, to make a special concession to the Colony in respect of the land required for the military defences of the new Base, and to exclude this item from the cost of the garrison for the purpose of recovery from the Colony. For the rest, in considering any question of Colonial Military Contribution the War Office attached great importance to the general principles that where a Colony is defended by naval as well as military forces, so long as it makes no contribution towards the annual cost of naval defence, it should pay as far as it is able the full cost of the military garrison, without regard to the question how far the garrison may be held to serve merely local purposes or the wider interests of Imperial defence; and further, that it is impracticable to divide a garrison (or its maintenance cost) into one part required for local defence and another part required for Imperial defence.
5. In reply, various reasons have been advanced against the acceptance of the general principles enunciated by the War Office and their application to the Straits Settlements, and in particular it has been maintained that the contention that the Straits Settlements are not liable to make certain payments, especially in connexion with land required admittedly not for local defence but for the military development of the Singapore Base, is based specifically on what happened in 1899.
When the Bill of what is now Ordinance No. 64 was brought before the Legislative Council, amendments were proposed by the Unofficials with a view to emphasising that the contribution was paid for local, and not for Imperial purposes, and were only defeated by the Official majority. The Unofficials then protested in the following words: -
We protest against this Bill being passed without a clear definition saying that the payment of 20 per cent of the Colony's revenue is to be for such defences as are from time to time necessary for the purposes of the Colony; and not for such as are insisted by the Imperial Government being created for using Singapore as an Imperial Garrison Station, or an Imperial Navy Docking or Repairing Station or a base of operation for the Imperial Navy."
In his reply to the Government Mr. Chamberlain said:-
"The acceptance of such an amendment would certainly lead to continual discussion as to the distinction between Colonial and Imperial purposes, a distinc- tion which it is impossible to define exactly. The second section of the proposed Ordinance shows sufficiently that the contribution is for the defence of the Colony and therefore the word ' Garrison' in Section 5 can only be interpreted as meaning the troops employed for the defence of the Colony
"
6. Attention was also drawn to the fact that the Colony of the Straits Settlements has in the past made generous contributions amounting to many millions to His Majesty's Government to assist in their financial difficulties, and that it freely gave the amount of land required by the Navy and Air Force for the Singapore Base and that, quite apart from the defence contribution, it makes considerable direct expenditure on local defence under such heads as Volunteers, Naval Volunteers, and Aeroplane Club Subsidy.
7. Various other arguments, mainly of an historical nature, have been employed on both sides; but I have come to the conclusion that the question was one which must really be considered, not so much on a basis of history as in the light of the actual facts of the position to-day. The outstanding fact which must necessarily affect the relations of this country and those Colonies which are sufficiently developed to make some contribution to Imperial Funds is the revolution which has been produced in financial conditions by the enormous cost of the war. I enclose for your information a statement* furnished by the Lords Commissioners of the Treasury showing the proportion of the revenue of the United Kingdom which is spent on defence purposes, including interest and sinking fund on debt incurred almost entirely for such purposes. These figures speak for themselves. This country has borne and is still bearing practically the whole burden of the cost of the war, including the defence of the Colonies during that period, and is still compelled to expend a large proportion of its revenue on the current needs of its defence forces. In these circumstances I am convinced that every Colony will feel it its duty to give every possible assistance to the Mother Country.
8. After full discussion, His Majesty's Government have come to the conclusion that a fair arrangement in the case of the Straits Settlements would be as follows:-
That the following proposals should be adopted in final settlement of all outstanding questions respecting the amount and method of calculation of the future annual military contributions of the Straits Settlements:
"
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(i) That all military expenditure (land, works, armaments, etc.) on the initial forma- tion of the Singapore Base should be borne finally by Army Votes, i.e., should be excluded from the cost of the garrison for the purpose of arriving at the Colonial contribution. (ii) That for all other military expenditure the existing arrangements should stand, i.c., the Colony should pay the fully ordinary cost of the garrison (subject always to the limit of 20 per cent of the assessable revenue), including any military personnel added to the garrison as the new defences are gradually manned, and including the cost of maintenance of the defences, old and new.
(iii) That the statutory maximum percentage of its revenue to be contributed by the Colony should not be reduced, but should remain at the long-established figure of 20 per cent of the assessable revenue.
9. I shall be glad if you will lay these proposals before the Legislative Council, and I trust that you will be able to secure their ready agreement.
C. 52056/28 [No. 24].
(No. 514.)
SIR,
No. 2.
STRAITS SETTLEMENTS.
THE GOVERNOR
to
THE SECRETARY OF STATE. (Received 13th August, 1928.)
I have, &c.,
L. S. AMERY.
Government House, Singapore, 18th July, 1928. I have the honour to acknowledge the receipt of your Straits Settlements despatch No. 185 of 30th April last* on the subject of the Defence Contribution payable under Ordinance 64 by the Government of this Colony to the Imperial Treasury.
2. Before acting on the instructions contained in the concluding paragraph of that despatch and formally laying the proposals set forth in paragraph 8 thereof before the Legislative Council, I caused copies of the document to be circulated to the Unofficial Members. I took this course because, having regard to the very strong feeling which prevails locally on this subject, I thought it advisable to ascertain definitely the views of the representatives of the public concerning these proposals in order that they might receive the consideration of yourself and of His Majesty's Government before action is taken to give effect to them by legislation. After the meeting of the Legislative Council on the 2nd instant, an informal meeting was held at which all the Unofficial Members, His Excellency the General Officer Commanding in Malaya, the Colonial Secretary and the Treasurer and I were present. As I had anticipated, the Unofficial Members expressed at this meeting strong and unanimous objections to the proposals set forth in the despatch under reply; and after some discussion, I invited them to embody their opinions in a memorandum. This document reached me on the 13th instant, and I now have the honour to forward a copy for your consideration.
SIR,
I have, &c.,
Enclosure in No. 2.
HUGH CLIFFORD, M.C.S.,
Governor.
Singapore, 12th July, 1928. In accordance with the suggestion put forward by Your Excellency at the informal mecting held on 2nd instant we have the honour to put in writing the views held by the Unofficial Members of the Legislative Council on the subject of the Defence Contribution payable annually by the Government of the Straits Settlements.
• No. 1.
Not printed.