CO882-(8-9) — Page 478

my opinion, very fully considered, I will not deny that opportunity

As far as the

official votes go, I have no objection to make this slight divergence from the policy that has hitherto actuated the Government, and postpone the matter for the time mentioned by the horumrable member. But it must be clearly understood that this is the only concession that the Government has in its power to make, because it must be understood by the Couneil that the accounts are getting more or less complicated - our transactions with the Imperia! Treasury Chest need regulating within the finan cial year, for instance, and for other reasons. I think it is somewhat undesirable to But, as I believe that the honourable members feel postpone the passing of this Bill. strongly upon the subject, and wish the Secretary of State to be given a locus penitentia. I will consent to it

The COLONIAL SECRETARY thereupon withdrew his opposition, and the amend ment was agreed to.

The Council then resumed

#

}..

2. Mr. Chamberlain considers that this is a convenient opportunity to raise the question of the manner in which the receipts of new undertakings of a commercial character established by the Colonial Government are to be assessed for the purposes of the military contribution. At the time when the percentage was originally fixed the revenue of the Colony included among other sources postal and harbour receipts, which were taken in gross and Mr Chamberlain does not propose to reopen the question in regard to these old undertakings, but it seems clear to him that, if the Colony desires to undertake in the future railways, tramways, gas, or electric light- ing or other productive works. a demand for a similar assessment will seriously hinder the development of such undertakings.

3. Mr. Chamberlain therefore trusts that [his Lordship] 'their Lordships] will consent to extend to such cases as those referred to above the principle which has already been admitted in the case of railways, viz., that the percentage should be calculated on the basis of the net and not the gross receipts.

+ A similar letter has been addressed to the Treasury] [War Office].

8833

No 3.

I am, &c.,

C P. LUCAS.

PUBLIC RECORD

OFFICE

Reference -

C.O. 882

9

PUBLIC RECORD OFFICE, LONDON

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

SIR,

(No 120)

STRAITS SETTLEMENTS

THE SECRETARY OF STATE to THE GOVERNOR.

Downing Street, 28 April, 1899.

I HAVE the honour to acknowledge the receipt of your despatch, No. 102 of the 16th of March,* and to confirm my telegram of the 24th of April, stating that I was unable to accept the amendments to the Defence Contribution Bill proposed by the Unofficial Members of the Legislative Council.

2.

The acceptance of such amendments would certainly lead to continual dis cussion as to the distinction between Colonial and Imperial purposes, a distinction which it is impossible to define exactly. The second section of the proposed Ordı nance 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 and not, for example, any troops that might be temporarily stationed at Singapore for sanitary reasons, under similar circumstances to those referred to in paragraph 12 of Lord Knutsford's despatch of the 5th of August, 1892.‡

3 Further, the words military lands and buildings" in Section 5 are sufficient to prevent the words "cost of the Garrison" in the last line of the section being held to include any naval expenditure, against which Mr. Burkinshaw's amend - ments were in part directed

8670

No. 4.

I have, &c.,

J. CHAMBERLAIN

STRAITS SETTLEMENTS:

COLONIAL OFFICE to WAR OFFICE AND TREASURY.

[Answered by Nos. 10 and 12.]

SIR,

Downing Street, 2 May, 1899. [To War Office only: WITH reference to your letter of the 10th May, 1897§] [To Treasury only: With reference to your letter of the 30th April, 1897||], I am directed by Mr. Secretary Chamberlain to transmit, for the consideration of the [Marquess of Lansdowne] [Lords Commissioners of His Majesty's Treasury], a copy of a telegram which has been received from the Governor of the Straits Settlements with reference to a proposal to establish a public telephone system in Penang.

No. 23 in [C. 7784].

• No. 2.

† 8833 not printed.

§ 9929 not printed.

9236 : not printed.

No. 1.

12301

STR.

(No. 144.)

No. 5.

STRAITS SETTLEMENTS.

THE GOVERNOR to THE SECRETARY OF STATE.

(Received May 15, 1899.)

[Copy to War Office and Treasury, May 23, 1899.]

Government House, Singapore, 20th April, 1899.

I HAD the honour to despatch to you the following telegram on the 8th

Instant*:

My Government desires to establish public telephone system Penang. Essential condition that net instead of gross local receipts pay military contri- bution; will War Office consent."

2. The existing telephone lines in Penang belong for the most part to Govern- ment, which owns 55 miles of pole line, carrying 107 miles of wire, in some part to the Municipality, and in part to the Estate of the late Mr. Gott, of the Eastern Extension Telegraph Company, who succeeded Mr. Judd, an electrician of the East- ern Extension Telegraph Company, who obtained, in 1881, from Government permis- sion to erect some wires on the Government telegraph poles, and now has some eight or ten private lines.

The Municipality lines and instruments are, by arrangement, maintained by the Public Works Department.

It is not proposed to interfere with the private lines unless the owner's repre- sentative should desire to abandon them.

3. I enclose a copy of the Colonial Engineer's estimate for establishing 50 lines, and for the revenue to be expected therefrom.

It will be seen that a small balance to the credit of revenue is anticipated- only $225, while the gross revenue is estimated at $4,400 a year.

4. The military contribution of 20 per cent. on $4,400 would be $880 a year, making an annual loss of more than $600 a year if this enterprise be charged military contribution on its gross, instead of on its net, revenue.

5. Under these circumstances I request that, following the precedent of the Johore Railway, you will arrange with the War Office that the Defence Contribution

• No. 1.