389
PUBLIC RECORD OFFICE
זו
Reference :-
C.O.882/11
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH-NOT TO BE REPRODUCED PHOTOGRAPHIC-
38
contribution towards the defence of the Empire, thus bringing the total annual payment up to $5,000,000, which is equivalent to rather more than £583,000 per annum."
The new draft Ordinance does not appear to depart in any way from the spirit of the terms for a settlement on which it was understood that Unofficial Members were at that time agreed.
5. There are other points to which I would ask you to give serious consideration. The most important is that no part of the cost of the Navy or the Air Force is borne by the Colony: that devolves entirely upon the Imperial Government. Without protection by sea and air this Colony would fall an easy prey to an invading force. But it is the declared policy of His Majesty's Government to come to the aid of any part of the Empire that is attacked. That is a form of protection for which the Colony has not been bound to pay in the past, and is not even now asked to bind itself to pay. Very heavy expenditure has been incurred by His Majesty's Government at the Seletar Air Base, which may now be regarded as our first line of defence; and the Naval Base, now under construction, for which the Colony will not be required to make any payment, is nevertheless an integral and vital part of our defence by sea.
6. Another point is that, looked at in the light of insurance, the amount which is proposed as the fixed annual contribution represents a very small percentage on the value of the property and interests defended. It probably represents less than one per cent on the value of houses, buildings, lands, and tenements within the municipal limits of the town of Singapore alone, without taking into account the rural part of the Island, the other Settlements, and the enormous amount of business interests and capital sunk in various enterprises throughout the Colony.
7. Another minor point for consideration is that the fixing of a definite annual sum for the contribution will remove the uncertainty which at present exists as to the amount which the Colony is liable to pay (subject to the limit of 20 per cent of the assessable revenue). You are aware of occasions in the past when large sums had to be provided in the course of a year over and above the armount budgeted for in the annual Estimates. With the provision of a fixed sum the financial position of the Colony will be more easily ascertainable at any time. Questions as to what kinds of revenue are assessable for the military contribution and what are not will no longer arise. From the point of view of the Imperial Treasury also a fixed contribution will be far more satisfactory. Unless the "gift" part of the contribution is fixed over a reasonable period, the Imperial Treasury will not know the amount of the gift on which they can rely when the estimates for Imperial Defence are being prepared, and, therefore, be unable to utilize it to the best advantage. It will be remembered that the gift is to be solely for the purpose of Imperial Defence.
8. Subject to certain necessary adjustments in respect of past expenditure an offer of the terms proposed will lead to a final settlement of this question by the end of the current year. The prospect of thus removing at an early date the misunderstandings, which have in recent years tended to disturb the good relations which exist between the inhabitants of this Colony and the Government, is one not lightly to be disregarded.
C.S.
39
Enclosure 5 in No. 21.
Copy of a note by the Colonial Treasurer, Straits Settlements.
The return of the Defence Contribution prepared by me at your request shows that the total amount paid for the years 1926-30 was From this has to be deducted representing refunds in respect of over-
payments in 1926-27 and 1927-28
+
Balance
$20,909,041
593,897
$20,315,144
There is also the overpayment of £87,320 in 1927-28 on account of the defences of the new Base to be taken into account, but as against this the War Office has claimed £46,508 in respect of the excess expenditure on the garrison over our contribution for the period 1st April, 1929, to 31st March, 1930, and also £51,651 in respect of the cost of anti-aircraft equipment excluded from the cost of the garrison in 1928 (vide enclosure to (16) in Confidential 1927-28). Allowing for the difference £10,839 = $92,906 in favour of the War Office, the total becomes $20,408,050 or an annual average of just over $4 millions as stated.
2. It is impossible at such short notice to form any idea of the value of property protected in the Straits Settlements. I have been able to ascertain from the audited accounts of the Singapore Municipality for 1930 that the annual value of houses, buildings, lands, and tenements within the Municipality according to the Valuation list on 31st December, 1930, was almost $30 millions. On this basis of 20 years' purchase and allowing for outgoings in the shape of assessment, and maintenance this represents a capital value of some $500,000,000.
9th August, 1931.
Amount Paid.
$
Defence Contribution, 1911-1930.
Assessable Amount,
i.e., 20 per cent of Assessable Revenue.
$
Year.
1911 1912
1,759,243.98
1,874,961.49
1,918,852,49
2,230,743.00
1913
2,590,013.00
2,243,726.40
1914
2,216,880.40
2,622,703.53
1915
2,938,846.53
2,655,715.57
1916
2,628,457.57
3,017,626.40
1917,
2,881,058.40
3,292,407.79
1918
3,720,488.79
3,986,760.45
1919
4,323,400.45
5,326,287.60
t
1920
3,099,492.00
6,294,024.47
1921
5,628,409.00
6,490,809.65
1922
3,827,145.00
1923
3,857,149.00
1924
3,556,188.00
6,282,735.71 5,827,306.38 5,165,830.25
1925
1926
3,630,387.78
3,279,881.25 (a)10,243,437.16 6,698,177.88
10. I am causing a copy of this letter, together with a copy of your letter of the 16th July, to be sent to all Unofficial Members of the Legislative Council.
1927
5,308,210.59
1928
3,960,000.03
1929
I have, &c.,
1930
3,775,714.32 (b)10,030,141.42 4,239,728.54
5,657,726.84
The Honourable
C. CLEMENTI,
Governor.
Mr. J. Bagnall,
Singapore.
9. I propose to invite the Unofficial Members of Council to meet me at Government House after the meeting of Council on the 31st August in order to discuss this matter further.
Remarks.
A. S. SMALL.
6,836,126.50 6,644,807.90
(a) Revenue swelled by receipt of $20 millions from the Currency Guaran- tee Fund in 1925. Excluding this amount assessable revenue is $6,243,437 as shown in accompanying graph.
(b) Revenue increased by transfer of $19 millions from the Currency Guaran- tee Fund. Excluding this amount assessable revenue is $6,030,141 as shown in accompanying graph.
€38051)
1241
E2
1