CO882-(8-9) — Page 59

PUBLIC RECORD OFFICE

19

Reference :---

C.O. 882

8

PUBLIC RECORD OFFICE, LONDON

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

SIR,

(Ceylon. No. 108.)

Downing Street, April 2, 1906.

I HAVE the honour to acknowledge the receipt of your despatch, No. 19, of the 10th January last on the subject of the financial requirements of the Ceylon Government in connexion with Public Works.

2. I have very carefully considered the whole question in the light of previous correspondence, and before communicating to you the opinions which I have formed on the important questions submitted for my decision, it will be well that I should set out the position as it presents itself to me.

3. Your predecessor, during his term of office, initiated, with the approval of the Secretary of State, an extensive scheme of public works, to provide for which a loan of £1,400,000 was raised in 1902. The programme was too great to be carried out in its entirety during Sir West Ridgeway's administration, and when he quitted office in 1903 he stated, in reviewing the situation, that in order to complete the sanctioned works nearly Rs.14,000,000 would be required before the end of 1906, while he estimated that there would be available towards meeting this expenditure about Rs.4,000,000, as yet unspent from the loan, as well as surplus balances of about equal amount. Thus there remained nearly Rs.6,000,000 to be provided, which might, or might not, have to be raised by loan. Sir West Ridgeway inclined to the latter opinion in the hope that future surpluses in the years 1904 to 1906, together with productive pearl fisheries, might between them make up the deficiency;,but in expressing this view he of course assumed that the estimated cost of the works would not be greatly exceeded, and also that no new works of importance would be undertaken pending the completion of those already

sanctioned.

4. Sir West Ridgeway's financial proposals went beyond the provision of funds for works to be constructed by the Colonial Government. The sanitary condition of Colomba was admittedly bad; the Municipality were unable to assume the whole burden of carrying out the extensive works which were considered necessary to place the drainage in a satisfactory condition; and as the sanitation of the port was felt to be a matter of general concern it was considered that assistance might properly be given to the Munici pality. In 1901 it was proposed, and approved by the Secretary of State, that this assistance should take the form of a loan of Rs.3,000,000 or thereabouts" to be raisel by the Colonial Government and lent to the Municipality at a rate of interest one-half per cent. higher than the Colony had to pay on the loan, together with a sinking fund of 1 per cent. It was estimated at that time that the cost of the drainage works would be about Rs.2,600,000.

5. Shortly after your assumption of office you brought the position to the notice of my predecessor. Accepting Sir West Ridgeway's figures-but appropriating Rs.3,000,000 instead of Rs.4,000,000 from surplus balances you proposed in March, 1901, that a loan of Rs.10,500,000 should be raised to complete the sanctioned works and to provide funds for the drainage scheme.

6. Correspondence followed on points of detail, until in September, 1904, you amended your proposal by advocating a loan of Rs.13,000,000. Of this amount you considered that Rs. 10,000,000 would now suffice for the above-mentioned services, and the remaining Rs.5,000,000 were to be provided in respect of new public works. You did not, however, commit yourself to any definite statement of the purposes to which this sum was to be devoted. The only one definitely mentioned was a breakwater which was considered to be necessary to protect the coaling jetties in the harbour. You also alluded to-

(1.) A new central railway station for Colombo,

(2.) Outlets for flood water as a protection from floods in the Colombo district, (3.) Deviation (or other protection from the sea) or doubling of the Seaside

Railway;

and you asked that the Rs.5,000,000 should be provided "for the contingency of these or other works which may prove unavoidable.”

GOVERNOR SIR HENRY A. BLAKE, G.C.M.G.

&c.,

&C.,

&a

30 & 708 W$ 305-48 406 Da8 5 2019