CO129-386 - Public Offices & Others - 1911 — Page 53

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defence works that in 1900 Mr. Chamberlain proposed that the contribution should be fixed at 20% of gross revenue excluding land sales in full return for the annual cost of the Imperial garrison, including all cápital expend ture for military lands and buildings. This was a ccepted and the arrangement hulds good, subject as in the case of the Straits to the modifica- tion as to assessing only net revenue from productive undertakinga.

III. CEYLON.

When Ceylon was transferred in 1801 from Indian to Imperial control a large garrison was needed for purely internal reasons e.g. the Kandyan War of 1819. Up to 1837 the Colony paid the local charges for supply, transport, barracks, works and the pay of cer- tain local corps the total came to about £108,000

per annum.

In 1837 the Colony was made to pay in addition £24,000 a year towards the Imperial military expenditure, and

this lasted till 1865.

Further demands were then made, as a result of the

Select Committees report and the contribution was fixed

at £160,000 per annum plus the local services already

mentioned. The arrangement was for seven years.

In 1874 a War Office Committee proposed the reduction

of the regular forces which would reduce the cost of the

garrison to £138,757 of which £17,502 was he cost of the

force stationed at Trincomalee. It was proposed that

the

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