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Mr. Lucas's letter (24163/1906) of the 12th instant,* further respecting the future maintenance of the work of the Scientific and Technical Department of the Imperial Institute, and I am to request you to submit to the Earl of Elgin the following reply.

2. My Lords observe that, of the Colonial Governments which have consented to contribute towards the work, only four have definitely committed themselves for a period of five years, the remainder having either limited the term to three years or left it unspecified. In these circumstances, their Lordships prefer not to pledge themselves at this stage to the continuance of the Imperial contribution for a longer period than three years.

3. The subscriptions already promised by Colonial Governments amount, as shown in paragraph 4 of Mr. Lucas's letter, in round numbers to £2,600; further contributions of £150 and £50 are hoped for from British Guiana and Southern Nigeria, respectively; and a sum of £150 will be available from Natal after the close of the present financial year. In these circumstances, the Secretary of State suggests that the promised contribution from the British Exchequer should not be reduced in proportion to the shortage, but that the maximum of £1,500 should be allowed. I am to express their Lordships' regret that they are unable to agree to this proposal, as they attach great importance to the maintenance of the principle that, during the three years covered by the present sanction, the contribution of His Majesty's Government shall, within the limit of £1,500, be one-half of that from the Colonies; and they cannot undertake to ask Parliament for a larger proportion.

4. The amount of Colonial contributions available towards the expenditure in the year from 1st October last is not yet finally determined, but it may be assumed that it will be not less than £2,800. On this basis the Imperial contribution for the first year will be £1,400, and this sum should be included in the supplementary estimate for Colonial services which it will presumably become necessary to present to Parliament in February next. Should the Colonial contributions exceed £2,800, the Imperial contribution can be subsequently adjusted; on the other hand, if, as contemplated in paragraph 14 (a) of Lord Elgin's circular of 31st July last, the actual expenditure on the Department is less than the provision available, the charge should be apportioned between the Imperial Government and the Colonies in the ratio of 1:2, and the excess provision will be returnable.

5. My Lords see no objection to the proposal that the Imperial contribution should be paid into a special fund to be set up at the office of the Crown Agents for the Colonies, subject to the condition that the accounts of the fund shall be audited by the Comptroller and Auditor-General. On learning that this condition is accepted by the Secretary of State, their Lordships will communicate with the Comptroller accordingly.

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1113

No. 63.

G. H. MURRAY.

SIR,

BOARD OF TRADE to COLONIAL OFFICE. (Received January 9, 1907.) [Answered by No. 66.]

Board of Trade (Commercial Department),

7, Whitehall Gardens, London, S. W., January 8, 1907.

I AM directed by the Board of Trade to acknowledge the receipt of your letter of the 12th ultimo ‡ enclosing copies of correspondence with the Treasury and with the Governors of Queensland and New South Wales respecting the future main- tenance of the work of the Scientific and Technical Department of the Imperial Institute.

The Board note that Lord Elgin has suggested to the Treasury that a special fund should be opened into which both the Colonial and the Imperial contributions shall be paid, at the office of the Crown Agents for the Colonies, and they desire

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• No. 60.

† No 11.

+ No. 61