383
PUBLIC RECORD OFFICE
זווזי
Reference :-
C.O.882/11
PUBLIC RECORD OFFICE, LONDON ALLY WITHOUT PERMISSION OF THE ISE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
26
His Majesty's Government's claim; further, the Malay States would raise the question of the return of their contribution towards the cost of the Singapore Base. If, on the other hand, the proposal for a lump sum were accepted none of these difficulties would arise and the Imperial Government would gain much in the goodwill of the European com- munity, who fully recognized the heaviness of the burden borne by the United Kingdom.
Sir Cecil recalled that a fixed contribution of $3,600,000 had been suggested, with a supplementary contribution of the order of $1,400,000 towards the cost of Imperial Defence generally. He hoped that the new system might be introduced as from the beginning of the Colony's next financial year, i.e., January, 1932. The amount of the contribution proposed was based on the average cost of the garrison in the five years before the initiation of the Base.
MR. CROSLAND pointed out that these had been "lean years," when nothing was being done to replace obsolete armaments. He estimated the cost of the garrison (exclusive of expenditure arising from the new Base) at £461,000 in 1930 and an average of £467,000 annually in each of the next five years; the latter figure included certain arrears (spread) as to which he would put in a note. He asked if the Unofficials would reduce their offer as a result of the decision to suspend work on the Base.
SIR CECIL CLEMENTI thought that would not be so, though there was undoubtedly disappointment at the decision and at the reduction of the Navy.
MR. ELLIS asked if the proposed supplementary contribution was not conditional on a similar offer being made by other Colonies; but SIR CECIL replied that this condition had not been mentioned to him and that he was sure, as a result of a recent meeting with them, that the Unofficials would agree to a lump sum of $5,000,000, i.e., the cost of the garrison plus a supplementary contribution towards Imperial defence in general. In reply to Mr. Upcott, he said that the proposal came from the Unofficial Members, but was also officially approved.
In reply to Mr. Waterfield SIR CECIL said that the figure of $1,400,000 was not a calculated amount; it merely represented the sum required to round up the Colony's total military contribution to $5,000,000.
MR. CROSLAND asked what the procedure would be. SIR CECIL CLEMENTI said that he would like to be able to return to Malaya with the knowledge, and with a semi-official letter to show to the Unofficials to confirm, that His Majesty's Government would accept a definite lump sum, the amount being stated, as the annual contribution from the Straits Settlements for the next five years. An Ordinance would then be passed repealing the present Ordinance and enacting that the sum named should be paid over annually to His Majesty's Government unconditionally in respect of the cost of defence, and that after five years the amount could be altered by mutual agreement.
MR. UPCOTT suggested that it was for His Majesty's Government to suggest a lump sum estimated to equal the average cost of the garrison, to which the Colony could add whatever supplementary contribution they chose. MR. CROSLAND promised to supply further statistics to show what would be a proper figure for the former.
SIR GILBERT GRINDLE emphasized the importance of allocating the contribution care- fully when received, so that there would be no suggestion in the Straits Settlements that their money given for one purpose was being used for another. MR. WATERFIELD said that there would be no difficulty about this: the contribution would appear as appropria- tions-in-aid in the votes of one or more of the defence departments.
MR. CALDER asked what would be the basis of the review at the end of five years. MR. CROSLAND said that presumably it would be the same as was now proposed, i.e., the cost of the garrison plus a supplementary voluntary contribution towards the cost of Imperial defence generally. SIR CECIL CLEMENTI assented; and in reply to a question said that he understood that pending a revision by agreement, the contribution would continue after the five years at the then current rate.
SIR Gilbert GRINDLE asked whether there would be any difficulty in keeping the expenditure arising out of the work on the Base separate from the rest of the military expenditure. MR. CROSLAND said that records had been kept to secure this division, and there would be no greater difficulty in continuing the division during the five years during which the military expenditure on the Base was to be confined to a small amount for caretaking, but he thought the time would come when the different elements of the defences would be so inter-related that it might be no longer possible to maintain the division.
COLONEL LIDDELL agreed on the last point, and SIR CECIL CLEMENTI remarked that that would be readily understood when the time came.
27
SIR CECIL CLEMENTI stated that if a settlement were reached on the lines proposed the Unofficials would now expect no reply to their memorandum of 1928.
It was agreed that the War Office should first supply figures of the estimated cost of the garrison in the years forming the basis of the contribution and that the Secretary of State for the Colonies and the Secretary of State for War, if they agreed, should then put a definite proposal for a lump sum contribution before the Chancellor of the Exchequer.
C. 82093/31 [No. 8].
No. 19.
MR. J. B. CROSLAND (WAR OFFICE)
to
SIR G. GRINDLE (COLONIAL OFFICE).
War Office, 2nd March, 1931. DEAR GRINDLE,
At the Conference at the Colonial Office with Sir Cecil Clementi regarding the Straits Settlements military contribution, I promised to prepare a memorandum on the cost of the Straits Settlements garrison.
The memorandum, of which I now enclose two copies, gives details of the cost of the garrison in post-war years, together with an explanation of the recent increases in cost, and an estimate of the cost in the next few years. Will you; if you agree, arrange for a copy to be sent to Sir Cecil Clementi, and let me know in due course if he desires any further information or any explanation of the figures, or any further discussion, e.g., as to the treatment of the years 1930 and 1931 under his proposal for the future? As regards subsequent procedure, perhaps the best course would be for Lord Passfield to put the proposal in general terms to Mr. Shaw for consideration. If Mr. Shaw accepts it and the Chancellor of the Exchequer raises no objection, we can discuss details between ourselves and with Sir Cecil Clementi, including the form in which, on his return to Singapore and after his further discussion with the Unofficial Members, he can most conveniently submit the proposal officially to the Colonial Office as an offer from the Colony.
Yours, &c..
(Confidential.)
Enclosure in No. 19.
J. B. CROSLAND.
MEMORANDUM ON THE COST OF THE GARRISON of the Straits SETTLEMENTS.
1. The cost of the garrison varies slightly from year to year owing to differences
in the establishment of officers and men, rise or fall in prices, variations in the rates of pay issuable and other casual causes. In addition there are larger fluctuations due to unavoidable variation from year to year arising on barracks and other works services, issues of warlike stores, and the amount of sea transport on relief of units.
2. From 1920 onwards the cost as compared with establishment and strength has been: --
Financial*
Year.
1920
1921
1922
1923
1924
1925
1926
1927
to the New Base.
462,000
Strength
Expenditure excluding that due
Establishment
all ranks. 1,342 1,347
1,342 1,957 1,355 1,973 1,452 1,450
all ranks. 1,222 1,143 1,189 1,278 1,345 1,434
491,000 461,000
1,454 1,466 1,466
1,468 1,492 1,479
1,462
446,000
1,494
LITI
1928
1929
1980 (Estimated)
1931 (Estimated)
440,000 353,000† 442,000 404,000 477,000+ 407,000 418,000 468,000
* Financial year 1920 1st April, 1920--31st March, 1921.
† As compared with 1921 the cost of sea transport was much less, prices fell and there was a
large credit for warlike stores returned.
Includes the cost of large issues of gun and rifle ammunition to complete local reserves and to replace condemned stocks.
[C38051)
D⭑2