CO885-11 — Page 394

391

42

already existing, and it is estimated that a small amount, some £4,000-£5,000, will be incurred annually on this account. This latter expenditure would be included in the cost of the garrison recoverable from the Colony either under the terms of the existing Ordinance or under the basis of the Peel Committee recommendations.

5. Subject, therefore, to the approval of the Treasury, the Council are prepared to agree to the contribution being assessed for the present on the basis of the Peel Committee Report.

+

6. A further communication will be addressed to you in due course regarding the adjustments referred to in your letter of 2nd May, 1932*.

Copies of your letter and of this reply have been sent to the Treasury,

C. 92052/32 [No. 18].

(Secret.)

SIR,

No. 26.

STRAITS SETTLEMENTS.

THE GOVERNOR

to

THE SECRETARY OF STATE. (Received 31st October, 1932.)

I am, &c.,

A. E. WIDDOWS.

Government House, Singapore, 6th October, 1932. With reference to my Secret despatch, dated the 22nd September, 1932†, on the subject of the military contribution of this Government, I have the honour to refer to paragraph 4 of the War Office Secret letter, dated the 22nd July, 1932‡ (which formed an enclosure of your Straits Settlements Secret despatch, dated the 28th July, 1932§), in which it is stated, in connexion with a recommendation of the Committee of Imperial "' of the Singapore defences, that Defence regarding the completion of the "First Stage

an amount of between £4,000 and £5,000 will be incurred annually in maintaining the new defences already existing.

2. It is apparently the intention of the War Office to include this expenditure in the cost of the garrison recoverable from the Colony, either under the terms of the existing Ordinance or upon the basis of the Peel Committee's recommendations. In my Secret despatch under reference I have asked that I may be supplied with a copy of the Report of Lord Peel's Committee of 1927, and until I receive it I am unable to appreciate the difference between the methods of assessment under which this expenditure is proposed to be recovered from this Colony. But if the charge in question has reference to the defences of the Naval Base, its inclusion in the contribution would appear to conflict with the attitude hitherto adopted by this Government, viz., that it should not contribute in any way towards those defences-an attitude which is reflected in Section 3 of the War Office letter mentioned above, where it is admitted that the Colony has not so far accepted the liability for the cost of manning the new defences.

3. In this connexion I would invite reference to my Confidential despatch, dated the 24th December, 1931], and, in view of the local unofficial contention that the defence of the Naval Base is different from the defence of the Colony and that any extension of defence that may in any way be incident to the creation of the Naval Base must not be deemed to be concerned with the proper defence of the Colony, for which the Colony is alone liable, I would ask that the matter of this proposed charge be referred back to the War Office for further consideration.

I have, &c.,

C. CLEMENTI,

Governor.

C. 92052/32 [No. 24].

SIR,

43

No. 27.

COLONIAL OFFICE

to

WAR OFFICE. [Answered by No. 31.]

Downing Street, 28th February, 1933. With reference to Colonial Office letter of the 9th of November last*, regarding the assessment of the military contribution of the Straits Settlements, I am directed by Secretary Sir Philip Cunliffe-Lister to acquaint you, for the information of the Army Council, that during Sir Samuel Wilson's recent visit to Malaya the Unofficial Members of the Legislative Council suggested that a settlement of this question should be arrived at on the following basis.

2. In consideration of the Government of the Straits Settlements agreeing to the following clauses--

(a) as regards the Imperial Government and for the purposes of Clause 2 of the offer to the Imperial Government, agreement on the part of the Colony means a resolution passed by a majority of the Unofficial Members of the Legislative Council, i.e., Official Members will abstain from voting;

(b) as regards the Imperial Government and for the purposes of Clause 3 of the offer to the Imperial Government, a majority similar to that in (a) above shall determine whether the right shall be exercised; and

(c) that the expenditure on local forces (land, sea, and air) shall in no year exceed

$500,000;

the Unofficial Members of the Legislative Council agree to the following offer being made

to the Imperial Government:-

(i) The Colony of the Straits Settlements offers the yearly sum of $4,000,000 for

five years from the 1st of April, 1933, to the Imperial Government as a fixed contribution payable by the Colony for the said period of five years in full return for the annual cost of the Imperial garrison and all other military, naval, and air charges whatsoever.

(ii) At the end of the first or any succeeding quinquennial period the said yearly sum of $4,000,000 may be increased or decreased by mutual agreement between the Imperial Government and the Colony, but except by such mutual agreement shall not be increased or decreased.

(iii) Provided always that the Colony shall have the right (not necessarily to be exercised) to limit the sum payable by the Colony in any particular year to a sum equivalent to 20 per cent. of the Colonial Revenues computed in accordance with the provisions of Section 3 of Ordinance No. 64 (Defence Contribution).

(iv) Payment to the Imperial Government shall be made by monthly instalments

in the same manner as hitherto,

(v) It is agreed that the revenues of the Colony on which the above-mentioned 20 per cent, shall be computed shall be the subject of discussion; in particular in regard to the question whether or not interest or income arising from accumulated revenues of the Colony shall be included therein for the purpose of such contribution.

3. Sir Philip Cunliffe-Lister is of opinion that the offer of the Unofficial Members is fair and reasonable, and in consideration thereof the Straits Settlements Government is willing to agree to the conditions (a), (b), and (c) precedent to it. That Government proposes, however, to stipulate in regard to condition (c) that a proviso should be added permitting the sum of $500,000 to be increased after five years, if a majority of the Unofficial Members agree.

4. Sir Philip Cunliffe-Lister would be glad to learn whether the Council agree to a settlement of the Colony's military contribution on the basis suggested.

5. A copy of this letter has been sent to the Treasury.

* 92064/32 [No. 8]: not printed.

† C. 92052/32 (No. 14]: not printed.

‡ No. 25.

§ C. 92052/82 [No. 11]: not printed.

No. 21.

* C. 92052/32 [No. 19]: not printed.

(C 38051)

I am, &c.,

J. A. CALDER.

PUBLIC RECORD OFFICE

Referance :--

C.O.882/11

PUBLIC RECORD OFFICE, LONDON

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