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which periodically gives rise to much discussion and to expressions of dissatisfaction on the part of the Unofficial Members of the Council, and the local Press, and I hope that with these data it will be possible to place before them accurate and authentic figures, which will dispose once for all of many of the inaccurate and groundless statements which have been current for many years past.

I have,. &c..

43644

SIR,

No 130

FG LUGARD.

Governor, &c

STRAITS SETTLEMENTS COLONIAL OFFICE to TREASURY

[Answere/ by No. 119,]

Downing Street, 25 March, 1908 I AM directed by the Earl of Elgin to transmit to you, to be laid before the despatch* from the Governor of Lords Commissioners of the Treasury, a copy of a the Straits Settlements respecting the military contribution paid by that Colony.

Lord Elgin will be glad to receive their Lordships' views on the suggestions put forward by Sir John Anderson. The matter is one of much importance to the Colony at the present time, and has been the subject of considerable discussion.

A copy of the Governor's despatch and of the present letter is being forwarded to the War Office for the consideration of the Army Council

43644

No 131

I am, &c.,

R. L. ANTROBUS

111

The Council regret that it is not possible to state with any approach to accuracy the actual cost of the garrison of Hong Kong in the remaining seven years of the period in question, as the expenditure on that force was not recorded in the accounts separately from that on the troops in North China. An approximate calculation has, however, been made of the cost in 1906/7, the last year for which the accounts have been made up; and in order to make it possible to meet the Governor's wishes on this point in future, arrangements have now been made to record the expenditure on the garrison of Hong Kong separately in the accounts from 1st April, 1907.

As your Department is aware, the other Colonies mentioned by the Governor pay no military contribution, and the cost of their garrisons does not appear to be sufficiently relevant to the subject to justify the trouble and delay involved in making

further calculations.

"

With reference to the Governor's remark as to Appendix 21 of the Army Estimates of 1907/8 being an apparently complete statement of the estimated expenditure in respect of the Colonies concerned, I am to draw attention to the note to that statement showing that it excludes loan expenditure, sea transport, arms, ammunition, and other stores, non-effective charges, &c., &c.

ture.

Although it is not yet possible to give any statement of the actual military expenditure in respect of Hong Kong during 1907/8 and 1908/9, it is clear that the contribution to be paid by the Colony will cover only a fraction of that expendi

The estimated contribution for 1907/8 is £138,300, and for 1908/9 only £108,000 (after allowing for the recent fall in the dollar); while in view of the recent increase in the garrison it is not likely that the expenditure in 1908/9 will fall short of £380,000, thus leaving more than two-thirds of the total to be met out of Imperial revenues.

With regard to the Governor's proposal to add one-third to the cost of military defence in Colonies, &c., which provide their own defence, to cover the charges borne by Civil Votes. I am to say that the Council are not cognisant of the line of demarca- tion between Military and Civil Votes in the several Colonies concerned, and that the circumstances do not appear to be sufficiently analogous to those of this country to enable the Imperial Army Estimates to be taken as a guide in forming an opinion on the proposal, without regard to the particular circumstances of each Colony.

I am, &c.,

E. W. D. WARD.

STRAITS SETTLEMENTS COLONIAL OFFICE to WAR OFFICE

[Answered by No. 133.]

Downing Street, 25 March, 1908. SIR,

I AM directed by the Earl of Elgin to transmit to you, for the consideration of the Army Council, a copy of a despatch* from the Governor of the Straits Settle ments, respecting the military contribution paid by that Colony, together with a copy of a letterf which has been addressed to the Treasury on the subject.

Enclosure in No. 132.

STATEMENT showing the cost of the garrisons of Mauritius, Ceylon, Straits Settle- ments, and Hong Kong, and the contributions paid by these Colonies in respect of each Financial Year from 1897 to 1908-7.

PUBLIC RECORD OFFICE

Reference :-

CICO. 882

11477

No. 132

HONG KONG

I am, &c..

R. L. ANTROBUS.

WAR OFFICE to COLONIAL OFFICE. (Received March 31, 1908.)

War Office, London, S. W., 31st March, 1908. SIR.

WITH reference to your letter. 45136-1907, of 6th January, 1908,‡ enclosing copies of despatches from the Governor of Hong Kong relative to the cost of the garrison in that Colony, I am commanded by the Army Council to furnish the enclosed statement showing the cost of the garrisons of Mauritius, Ceylon, and Straits Settlements, with the Colonial contributions received, for each of the last years for which the accounts have been made up, and similar particulars regard ing Hong Kong for the three years 1807/8 to 1899/1900.

10

• No. 128. ↑ No. 130.

Transmitting for observations copies of No. 129, and 44832: not printed.

Mauriting.

Ceylon.

Strait Settlement-.

Hong Kong.

Year.

Cout.

Contribution." COFL.

Contribution. Cost. Contribution.

Coet,

Contribution.

1906-07

£

£

£

£

£ 1897-8 114,524 20,754 168,665 108,739 168,432 1898-9

199,656 22.168

196,591

120,469 204,051 1899-00 240,393 26,480 175,451 127,184 1900-01 248,437 26,433 204,291 132,357 1901-02 262,376 26,062 194,188 128,060 152,032 1902-03 265,038 23,554 223.128 133,545 195,477 127,508 1903-04 281,515 26,573 254,853 144,175 285,114 140,259 1904-05 299,222 27,620 227,396 141,615 261,364 186,265 1905-06 286,688 27,644 191,500

1

143,625 246,655 185,927 249,989 27,165 165,161 123,871 280,491 211,191† 380,000†

£

£ 75,499 287,281

£

44,660

82,895 311.361

47,340

160,378

97,604 289,792

52,767

119,475 101,113

1 62,798

127,495 Cost not | 78,093

separately recorded

77,312

87,992

[see letter).

119,217

128,513

139,958+

+ Estimated.

• Exclusive of Capital Expenditure on Works. NOTE. As the Colonial financial years differ by one quarter from the Imperial (1st April to 31st March), the contribution in respect of each Imperial financial year has been arrived at by taking one-quarter of one (local) year's contribution and three- quarters of another.

6

PUBLIC RECORD OFFICE, LONDON

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