CO885-11 — Page 373

xii

Page.

Subject.

Serial

From ar to whom,

Date.

No.

Despatch No., etc.

1

STRAITS SETTLEMENTS

370

103

War Office

6th November

Replying to No. 91, disagrees that the two questions of contribution and Local Defence Force are inter- dependent. Cannot accept flat- rate contribution of £25,000 but agrees to principle that cost of garrison enters directly into the determination of contribution.

147

C. 52056/28 [No. 10].

No. 1.

STRAITS SETTLEMENTS.

THE SECRETARY OF STATE

to

THE GOVERNOR, [Answered by No. 2.]

Downing Street, 30th April, 1928. With reference to my despatch No. 553 of the 28th November, 1927*, enclosing a copy of a note by the Association of British Malaya on the Military Contribution from the Straits Settlements, I have the honour to inform you that this question has for some time been the object of earnest consideration by His Majesty's Government.

2. I will not trouble you with full details of the discussions which have taken place, but it will be convenient if I briefly rehearse the facts and indicate the position reached in October, 1927, after the discussion had proceeded for some time. The facts regarding the Military Contribution, and the increased cost of the garrison consequent on the develop- ment of the Naval Base appeared to be as follows:-

104

Sir H. J. Creedy, War Office, to Sir S. Wilson, Colonial Office.

6th November

105 The Governor

22nd November

Tel. No. 91.

Confidential,

Refers to No. 103, and explains that it is not desired to discourage the project for a Defence Force. Refers to No. 100, enquires as to prospect of some financial adjust- ment and seeks approval of definite steps for establishment of Defence Force.

149

150

(No. 185.)

SIR,

106

To Governor

22nd November

Tel. No. 96. Confidential.

In reply to No. 105, approves estab- lishment of Defence Force but trusts question can be treated independently of that of military contribution

150

107

To Treasury

24th November

Refers to No 103, and enquires whether proposal of Army Council that contribution should be limited to actual cost of garrison, or to 5 per cent of revenue, whichever is the less, is approved.

150

1934

108 Treasury to Colonial Office

4th January

..

Prepared to accept proposal in No. 103 and will raise no objections to being associated with Army Council view as explained in No. 109.

151

109

To Governor

10th January

Tel. No. 5. Confidential.

Gives gist of Nos. 103 and 108. Trusts that Council's consent to Defence Force proposals will be secured without giving any undertaking as to further reduction of Military contribution.

151

(a) Under an arrangement which has been in force virtually without change for over 30 years, the Government of the Straits Settlements pays annually the full cost of the military garrison up to a maximum of 20 per cent of the revenue. Until 1913-14 the cost of the garrison was greater than 20 per cent of the revenue and consequently the contribution was based on the latter, the balance of the cost of the garrison falling on Army Funds. Since 1913-14 the cost of the garrison has in an increasing degree fallen short of 20 per cent of the revenue. The revenue assessable to contribution in 1925 (the latest year for which the revenue figures were available) was £3,640,000, of which 20 per cent would be £728,000; while the cost of the garrison, and therefore the colonial contribution, for that year was only £477,000, or about 13 per cent of the revenue.

(b) Recently, owing to the commencement of expenditure on defences for the new Naval Base, the ratio of the cost of the garrison, as estimated by the War Office, to the revenue has again begun to rise; thus the 1927 estimate of the military expenditure is £558,000, or about 15 per cent of the (1925) revenue. This total includes £142,000 for capital expenditure on land, works and armaments for the military defences of the new Base. (The 1928 estimate is £712,000, of which £262,000 is for such capital expenditure.) (c) The details of the proposals for the new military defences and the future garrison were then (and still are) under review in consequence of the visit of Lieutenant-General Sir Webb Gillman to Singapore, and reliable figures were therefore not at the moment available; but on the then plan of the military authorities it was anticipated that the total military expenditure in any one year might gradually rise from the £477,000 in 1925 to perhaps £1,100,000 a few years hence, thereafter falling to something over £700,000 when the new defences are completed.

3. In reply to the Colony's recent protest against the inclusion in the cost of the garrison recoverable from colonial funds of items in connexion with the new Base, on the ground that the Base is required not for the defence of the Colony as such but as part of the scheme of Empire defence generally, the War Office have pointed out that the Colony's contribution can in no year exceed the limit of 20 per cent of the revenue, i.e., on the latest figures £728,000; and if the revenue should expand it is possible that, when capital expenditure on the new military defences ceases, the cost of the garrison, and therefore the Colony's contribution, may again be less than 20 per cent of its revenue. In addition it is observed that the programme for the formation of the Base during the next few years will involve military expenditure greatly in excess of 20 per cent of the Colony's probable revenue, and this excess will in any case fall finally on Army Funds under the standing arrangement referred to in paragraph 2 (a) above.

* C. 28222/27: not printed.

PUBLIC RECORD OFFICE

Reference :-

TREETC.O. 882/11

سائنس

PUBLIC RECORD OFFICE, LONDON

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