PUBLIC RECORD OFFICE

TP

بلتسييسا

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C.O. 885

24 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

62

CEYLON.

This was in my reply to my telegram of 5th October, referred to in paragraph 3 of my despatch of 8th October.*

I replied to your telegram by my telegrams of 9th and 10th October, urging the necessity in the interests of the commerce of the Colony that immediate stepe be taken to insure the "Fürth" under the Government Insurance Scheme.

This is a matter of the utmost local importance, and I trust to receive an early assurance from you that the insurance will be successfully affected.

(c) Your cipher telegram of 8th October, informing me of the sus- picions of the Lords Commissioners of the Admiralty regarding the Germans in Ceylon, and inquiring what steps had been taken to prevent Germans on parole from communicating with the coast.

As the result of careful inquiries, I am of opinion that the "Emden" could not have been assisted by the local enemy subjects.

As regards communication with the coast, I would point out that most of the parole-prisoners live in Colombo within a mile of the sea coast and it is impossible to prevent their physical approach to the coast unless they are removed from Colombo, where their businesses are situated. They are, however, under police surveillance, which is, in my opinion and in that of the Inspector-General of Police, sufficient to prevent them from rendering any assistance to the enemy. There have been a few cases of breach of parole regulations. These have been promptly detected and the offenders interned at Ragama.

I would venture to suggest that the utmost caution be observed in accepting suggestions from sources in England which are not unlikely to be inspired by British firms seeking to obtain trade advantages over local German firms (particu- larly in the direction of buying up their fixed assets at cheap prices), contrary to the tenor of your telegram of 21st September.

These views I communicated to you by my cipher telegram of 11th October. I enclose, for your information, an extract from the local Times of Ceylon, of the 8th instant (the date on which your telegram was despatched), suggesting to me the possibility of an organized effort by possibly interested parties. This newspaper telegram was communicated forthwith to the Naval Commander in Chief of this station at Bombay through the Naval Intelligence Officer at this port, for an expression of Admiral Peirse's opinion. On the 10th instant that officer telegraphed in reply:-"I am unable to give an opinion, as measures taken are unknown to me.'" This, at any rate, serves to show that the Admiral on the spot had no reason to share the fears of the Ceylon Association in London.

(d) Your telegram of 9th October, promising to communicate your decision as early as possible, in answer to my telegram of 5th October, in which I recommended that banks and firms of high standing be allowed to use code addresses.

Great importance is attached to this desired and desirable concession by busi- ness men here, but they quite realize that Ceylon cannot receive privileges denied to other parts of the Empire.

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(e) Your telegram of 9th October, asking for details regarding the Steinturm," Moltke fels," and "Rappenfels."

The required information is being sent by telegram to-day.

(Your cipher telegram of 10th October, requesting me to cause all

any kind. enemy subjects to be removed from British ships of

Steps have been taken to carry out your instructions.

(9) Your telegram of 12th October, communicating to me certain amendments in the Trading with the Enemy Proclamation No. 2.

The details have been communicated to the officers concerned and the necessary Proclamation will be issued in due course.

(h) Your cipher telegram of 13th October, informing me of the arrangements for the escorting of the contingent.

To this I replied by my telegram of 14th October, gratefully concurring in the proposed arrangements.

(1) Your cipher telegram of 14th October, asking if the contingent is to be paid at British rates and what arrangements are being made for the payment of the troops.

83

OEYLON.

To this I am replying to-day informing you that British rates will be paid, and asking that War Office should undertake payment, receiving from the Crown Agents, without rendering accounts, a fixed monthly payment of say £800 to cover all pay and allowances for the whole contingent. From my experience in the past. of War Office Accounts and claims, I consider that this arrangement should prove no less convenient to them than to us here, particularly if, as I anticipate, men are moved to other units and promoted to higher ranks therein. I gather from the information here available that the approximate cost will be about £25 a day, so that a margin of profit to War Office is involved. If £800 does not cover pay and allowances, it would, of course, be increased to do so.

2. In continuation of paragraph 5 of my despatch under reference,* you will be aware (from my cipher telegrain of 8th October) that I found it necessary to ask your assistance with the Admiralty in order to obtain an escort for the Ceylon contingent, the cost of which had already been sanctioned-unanimously— by the Legislative Council on 7th October.

I am glad to find that an escort has now been arranged for and I hope to despatch the contingent by the "Bibby" steamship on or about 20th October. The difficulties experienced in arranging for a suitable transport and for an escort have been a matter of great anxiety to me, but I trust the difficulties have now been satisfactorily overcome. I must express my indebtedness to you for your ready response to my telegram of 8th October.

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The contingent has received a sound training at Diyatalawa under Colonel owe much to him for the per- Fell, Commandant of the Ceylon Volunteers, and sonal care which he has devoted to this contingent so that it might be in a position to start equipped with the best training the Island could give and thus to save the Mother Country trouble by arriving as an organized and trained unit for service. As it appeared that there was a reasonable chance of Colonel Fell's obtaining com- mand of a brigade at home (vide your telegram of 10th October), and as sidered that his services could now be spared in Ceylon, I allowed Colonel Fell to Lieutenant- pay. leave for home on 7th October on three months' leave without Colonel Hayward, V.D., who commands the Ceylon Artillery Volunteers, has been appointed by me to act as Commandant during Colonel Fell's absence on leave. communicated this to you by my telegram of 11th October. This being so, I shall not require as Commandant, Ceylon Volunteers, Colonel Prendergast, for whom have in view services which I indicated to you in my cipher telegram of 13th October.

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3. The prisoners of war now number 310: 87 on parole, 210 in Ragama Camp, and 13 in gaol for petty offences.

I have had under consideration the advisability of removing all the remaining parole prisoners from Colombo. After a careful survey of all aspects of the ques- tion, I am still of opinion that it is better that such enemy subjects should be allowed to remain on parole to carry on under careful restrictions their ordinary avocations. They are kept under strict police surveillance and can be arrested and interned on the first sign of hostile action.

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4. With reference to paragraph 1 (b) of my Confidential despatch of 3rd September,t I have been in communication with the Naval Commander in Chief through the Naval Store Officer, and have made suitable arrangements for the bunkering of merchant shipping.

5. Subscriptions to the Prince of Wales's Relief Fund' now amount to over Ra. 277,000, and I hope that a total of over Rs. 300.000 will be reached; a sum of £15,000 has already been remitted to London.

6. In reply to your cipher telegram of 2nd October (ride paragraph 1 (d) of my despatch of 8th October*), I informed you by my cipher telegram of 12th October that exports of rubber to the United States of America had 'increased considerably since the beginning of the war, and I gave figures in support of my statement. The return from which these figures were taken has been forwarded to you with my Confidential despatch of 14th October:‡

7. The Ordinance dealing with trading with the enemy, referred to in para- graph 7 of my despatch of 29th September,§ was duly passed in all its stages at a meeting of the Legislative Council on 7th October last, and a copy is being for- warded to you with a separate despatch.

* No. 84.

+ Not reprinted.

* No. 84.

↑ No. 29.

48859: not printed.

§ No. 88.

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