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171

PUBLIC RECORD OFFICE

། ། ། ། ། །

Reference :-

C.O. 882

that if the Military

pata topli 14 of my despatch, No 290 of May 23rd, 190×,* *- Expenditure is to day smaller than it was some years ago, that has been brought about by action taken by the Army Council, not only without consulting the wishes of the Colony, but in the matter of the substitution of a native for a European regi

in direct opposition to its expressed desires."

13 As regards paragraph 9 of the War Office letter. I am glad to note that even under the proposed scheme 94 per cent of the Colony's revenue would, as in the past, I must confess, however, to a fear that if a be the utmost limit of its contribution

There part of the agreement on which Ordinance No 2 of 1×98 was based is to be torn up, it is hardly safe to assume that the other part would necessarily be respected would, moreover, not be the same safeguard against excessive expenditure as there is at present. when the Army Gouncil is responsible for one quarter of such expendi-

ture

14. It is quite unnecessary to discuss at length the allusion made by the Army Council in the concluding paragraph of Sir Edward Ward's letter, namely, that the Colony makes no contribution towards the cost of its naval defence. The introduction If this of such an argument is evidence of the weakness of the War Office case separate question ever comes up for consideration, it will be found that Ceylon is prepared to discuss it in the fullest and most generous spirit. It will, however, present many difficulties, for closely connected with it is the very important one of the general fiscal policy of the Empire, and how far the proceeds of differential duties on produce and goods from foreign countries should be devoted to the maintenance of His Majesty's Navy

15 I earnestly trust that on reconsideration of the question in the light of this despatch which expresses the views of the members of my Executive Council, with the exception of the Brigadier General Commanding the Troops and of the Acting Attorney General your Lordship will support this Government in the contention As I have already that Mr Chamberlain's settlement should not be disturbed. indicated in my previous despatch, the Legislative Council will be certain strongly to resent a reopening of the question on a point regarding which there was no ambiguity, patent or latent, either in the despatch which dictated the settlement I can only add that, to use the or in the Ordinance which embodied its termis

official vote, either in the expiring days of the present Council, or in the opening days of the new "reformed" Council, to legalise a variation in that settlement- a variation, moreover, which is repugnant to the strongly expressed views of at least four of the Official Members is a contingency which I cannot but deplore.

16. My conviction of the injustice of the War Office proposal is so profound that I do not feel I can usefully discuss the terms of the "compromise" which your Lordship suggests should be effected with the Army Council. If your Lordship decides to yield to the War Oflice contention, the conditions suggested appear to afford some slight mitigation of the terms, but I do not for a moment believe that they would be regarded in this Colony as in any degree an appreciable set-off to the the Colony new demand; nor do I clearly understand what "further concession could offer in return for the re-establishment of a white regiment in the Island. The Colony has expressed its desire for such a regiment, and that desire remains, but the distribution of His Majesty's forces must necessarily be governed chiefly by military considerations, and it does not appear to me desirable to influence that distribution by reference to a controversy which must proceed on other and independent con- siderations.

17. In conclusion, I desire to assure your Lordship that it is no lack of appre- ciation of the benefits derived from the Imperial garrison which causes this The Colony is fully alive Government to oppose the demands of the War Office.

to those benefits, and has never evinced any desire to abate one jot of its just obliga- tions in respect thereof. But my Government contends and, I submit, with good reason that those obligations were satisfactorily settled' by statutory enactment twelve years ago, and that no sufficient reason has been put forward why that enact- ment should now be abrogated. Finally, they protest against a policy which involves a variation of the Military Defence Ordinance, which will operate almost wholly in favour of the Imperial exchequer at the expense of the Colonial revenue.

I have, &c..

HENRY MCCALLUM.

33791

SIR.

No 180

CEYLON

WAR OFFICE to COLONIAL OFFICE

(Received 3 November, 1910.)

| Answered by No. 183.]

War Office, London, S W., 3rd November, 1910 WITH reference to your letter. 15857, dated 9th June last.* on the subject of the military contribution paid by Ceylon. I am commanded by the Army Council to enquire whether a reply can now be sent to War Office letter dated 25th October. 1909 +

33793

SIR,

No. 181

STRAITS SETTLEMENTS.

I am, &c..

R. H. BRADE

WAR OFFICE to COLONIAL OFFICE.

(Received 3 November, 1910.) [Answered by No. 182.]

War Office, London, S. W., 3rd November, 1910. WITH reference to your letter, 15724/10, of the 7th June, 1910, regarding the military contribution of the Straits Settlements, I am commanded by the Army Council to inform you that they are glad to learn that the Secretary of State for the Colonies will request the Governor to include in the assessable revenue the gross receipts from Government buildings let for profit.

As, however, the amounts in question have already been outstanding for some years, and as the settlement of the various other questions dealt with in your letter may take some time, they would suggest that it would be more proper to settle these amounts without waiting for the other questions.

The amounts deducted from the assessable revenue in respect of Government buildings have been as follows:-

1907 1908

8 C.

43,597.96

50,240.10

93,838.06

Of this sum 20 per cent. (= $18,767.61, or £2,189 9s. 1d.) is now due to Army funds, and I am accordingly to request that, if no objection is seen, instructions may be sent to the Governor authorising the payment of this amount to the Command Paymaster.

33793

SIR,

No. 182.

STRAITS SETTLEMENTS.

I am, &c.,

R. H. BRADE.

COLONIAL OFFICE to WAR OFFICE.

Downing Street, 15 November, 1910.

I AM directed by Mr. Secretary Harcourt to acknowledge the receipt of your letter of the third of November,§ with regard to the inclusion in the assessable revenue of the Straits Settlements of the gross receipts from Government buildings let for profit.

• No. 135.

• No. 177.

↑ No. 166.

‡ No. 176.

f No. 181.

6

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

PUBLIC RECORD OFFICE, LONDON