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PUBLIC RECORD OFFICE, LONDON

C. 83227/31 [No. 12].

84

No. 36.

THE SECRETARY OF STATE to THE GOVERNOR.

(Sent 1 p.m., 3rd October, 1931.) [Answered by Nos. 37 and 39.]

TELEGRAM.

No. 186. I REQUEST that you will inform the Board of Ministers that my attention has been drawn to a proposal for the reduction of the passage privileges of public officers. The question of grant of free passages on leave to officers in the Colonial Service has recently been carefully considered by the Colonial Service Com- mittee who have endorsed view of Warren Fisher Committee as to importance, in interests of efficiency of service, of generous leave and passage regulations. Com- mittee have recommended as general rule grant of passages after three years' resident service with extension to four years where climatic and other conditions justify In the circumstances I am strongly of opinion that existing privileges in Ceylon should not be curtailed and I see no sufficient ground for change which would involve loss of efficiency and serious hardship in individual cases out of all proportion to financial saving involved. Similar considerations apply to grant of holiday warrants pending While on this provision of increased salaries recommended by Salaries Committee.

subject I may refer to questions of reductions of salary of public officers which is doubtless likely to be raised in some quarters. My general attitude on this subject is that principle of equality of sacrifice should be followed as far as possible and any proposal which in effect means special tax upon a particular section of the community is not in accordance with this principle. For these reasons I should be in favour of a general income tax where circumstances permit. Reductions in salaries of public servants are in my view justifiable only when both the following conditions obtain :- (a) all practicable means of increasing revenue have been carried out and drastic reductions on expenditure side are still necessary in order to balance Budget;

(b) salaries were adjusted to a higher level of general prices than now prevails and may with some justification be regarded as reducible without serious breach of obligations on ground that lower amounts will suffice to maintain adequate standard of living.

On information at present before me I am not satisfied that either condition can be said to obtain in Ceylon and having regard to serious consequences to morale of public service which would result from a reduction which could not be fully justified to those concerned. I should, as at present advised, feel bound in the best interests of the Island to deprecate strongly any such step in existing circumstances. At the same time I do not think that it would be justifiable to refuse to allow matter to be discussed in State Council if Ministers after full consideration think such a course desirable.-THOMAS.

C. 83227/31 [No. 14].

No. 210.

No. 37.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 8.39 p.m., 13th October, 1931.)

TELEGRAM.

13TH OCTOBER. Your telegram of the 3rd October, No. 186.* I have received following the Board of Ministers:-

Begins: With reference to Your Excellency's despatch dated the 24th August, 1931,† regarding passage and holiday warrants and the Secretary of State's reply (copies of which were laid before them) the Board of Ministers beg to express their keen sense of disappointment to learn that their proposals have not met with the approval of the Secretary of State. They would therefore approach Your Excellency once more with the request that you would resubmit the matter to the Secretary of State for reconsideration.

* No. 36.

† No. 34.

85

2. The Board of Ministers would also take this opportunity to restate their position in regard to one or two points. They submitted their proposals to Your Excellency because they were convinced that the alterations of the conditions of passage allowances, recommended by the Salaries Committee and approved in effect by the Legislative Council, were necessary and just. Their action in this matter was not due either to the prevailing financial depression or the adverse decision of the State Council on the Supplementary Vote on passages, though undoubtedly these circumstances naturally strengthened their views on the question. They would have in any case submitted to Your Excellency their proposals to alter the con- ditions regulating the grant of free passages.

3. The Board of Ministers would also state that they approved the Supple- mentary Vote not merely because it was a fait accompli, but also because no steps had been taken to alter the conditions regarding passage allowances after the refusal on the part of the Government to accept the reduced Vote passed by the Legislative Council.

4 The Board of Ministers desire also to remove a slight misunderstanding on one other point. At no time did they intend these proposals to be temporary. As for the view that in the case of European officers employed in tropical countries they should be granted leave and free passages once in four years, the Board of Ministers would submit that climatic conditions in Ceylon are very much better than prevail in other tropical lands, and that it is neither fair nor justifiable to formulate one general scheme of passage allowances irrespective of the varying conditions in different countries. In this connexion it is noteworthy that not a few European Civil Servants and business men have, after retirement, made Ceylon their permanent home. Attention may also be drawn to the fact that Major J. W. Oldfield, one of the Nominated European Members, who on this occasion generally reflected the views held by the European community in his speech on the Budget on the 6th instant, agreed that the Passage scheme should be modified. 5. As regards proposed reduction in number of holiday warrants the Board of Ministers think it hardly necessary to add to what they have already submitted to Your Excellency except that even small economies, which can be practised without being unfair and causing hardship to the persons concerned, cannot and should not be disregarded at the present time.

6. The decision of the State Council on the Supplementary Vote conclusively proved that the Council is entirely opposed to the grant of passage allowances on the old conditions. Public opinion strongly supports this view. In fact, tendency is gaining ground that free passages should be abolished altogether. Your Excel- lency will doubtless ágree that Ministers cannot possibly be expected to act in this or any other matter contrary to their own convictions, the expressed views of the State Council, and the almost unanimous opinion of the whole country.— Ends.

C. 83227/31 [No. 15].

No. 211.

No. 38.

THE GOVERNOR to THE SECRETARY OF STATE. (Received 11.5 p.m., 13th October, 1931)

TELEGRAM.

13TH OCTOBER. Secret. My immediately preceding telegram, Ministers have expressed great disappointment at the non-approval of the proposal to reduce passages. In view of my clear statement that I could not support the proposal I cannot believe the disappointment altogether genuine. Nevertheless the late Legis- lative Council undoubtedly felt that the proposal to reduce passages instead of cutting them out altogether to be a reasonable compromise which might well be accepted. Ministers share this view and also feel that concession on this point would have appreciably facilitated their task of controlling extreme section of the State Council. They go so far as to suggest that if the full provision is restored by the use of the reserve power either they will resign or else there will be a walk out of the whole Council which they will have to join. At first sight it seems ridiculous to risk constitu- tional crisis over so small a matter. On the other hand, if we give way, public servants will rightly claim that their declared apprehensions regarding insufficiency of safeguards

* No. 37.

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