CO882-(1-2) — Page 423

Custer

Printed exclusively for the Colonial Office.

7

CONFIDENTIAL.

No 26.

Military Expenditure (Ceylon).

No. 1.

No 1.

PUBLIC RECORD OFFICE

יי

C.O.

Reference :--

-882

2 PUBLIC RECORD OFFICE, LONDON

SIR,

The UNDER-SEcretary of State, Colonial Office, to Sir E. Lugard,

Downing Street, October 12, 1863.

I AM directed by the Duke of Newcastle to aunex, for the information of Earl de Grey, a copy of a despatch on military expenditure, which his Grace proposes to address to the Governor of Ceylon, subject to its being approved by the Lords Commissioners of the Treasury, who have it now before them.

2. This despatch calls upon the Colony for a present increase of military contribution (in the shape explained in the despatch) at the rate of from 30,0001. to 35,0001, a-year, to commence from the 1st of April, 1864, and for a further increase, a few years hence, not to exceed 35,000l. a-year more, which second increase his Grace anticipates will cover the entire annual military expenditure on account of Ceylon, whether incurred on the spot or in England, on a peace establishment, if the expenditure is fairly estimated and the establishment duly revised. His Grace includes in the expenditure to be thus covered, the annual repairs of military works and buildings, but not any heavy outlay for original construction, which would be matter of special arrangement with the Colony from time to time.

3. His Grace considers that the first increase of contribution may properly be demanded without any previous revision of the establishment or rate of expenditure, as this increase will unquestionably fall short of the total charge upon what may be considered a minimum estimate of the force to be kept up and the expenditure to be incurred. But his Grace, as the despatch states, thinks it only just to the Colony that a complete inquiry into both establishment and expenditure, with a view to making every practicable reduction, should be a condition of the future increase, and, indeed, should precede it.

4. The mode of making this inquiry is left open for consideration with Lord de Grey, but as regards inquiry-where it must mainly take place— in Ceylon itself, his Grace is disposed to leave the Governor to proceed either by a Committee of the Legislative Council, or a Commission, as he may think fit, after consulting his Executive Council. The decision, his Grace thinks, may be safely left in the hands of Sir Charles MacCarthy, and also the duty of selecting fit persons, and settling their number, and preference all other necessary details. If, however, Lord de Grey has a for this or that mode of proceeding, or desires the nomination of any par ticular officer or officers, his Grace will instruct the Governor to give effect to Lord de Grey's wishes.

5. The present Military Establishment for duty in Ceylon, when complete, may be stated in round numbers at 1,000 Europeans, Infantry and Artillery together, exclusive of officers, and 1,500 Malay or Indian His troops of all ranks Ceylon Infantry and Gun Lascars together. Grace does not anticipate, indeed, he would deprecate any reduction of this

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