Coll 29/86 'Diplomatic and consular expenditure: incidence; revision; general' [‎264v] (528/561)

42.
P.5105/32.
P.5105/32.
12th January
1933.
contribute to the cost of the diplomatic or consular services
maintained in foreign countries by His Majesty’s Government in the
United Kingdom; and the fact that some of the Dominions may now
maintain services of their own, in countries where they consider
that their interests warrant such expenditure, does not offer any p
justification for imposing on Indian revenues c. contribution
towards expenditure over which the Government of India have no
control and which has very little relation to any Indian
interests.”
131. ”0n all grounds, therefore," they concluded "Mr. Benn
considers that there is a clear case for discontinuing the
contribution, and he accordingly proposes that the rebate of the
Treasury contribution towards the cost of the Secretary of
State’s Establishment hitherto afforded in respect of the China
contribution should cease forthwith."
132. The question continued to be blocked by the Treasury,
however, until 1932, when they agreed that, as from the 1st
April 1933, the grant-in-aid of the expenses of the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors.
should no longer be abated by £12,000 (not £12,500) in respect
of the China Consulates.
133. In the meanwhile the Government of India had drawn
the Secretary of State’s attention, in a letter dated 3rd August
1932, to the fact that for reasons of economy, the British
Government had recently made certain reductions, by way of cuts
in pay etc., in the cost of those diplomatic and consular
establishments towards which the Government of India contributed,
and that the Government of India were therefore entitled to a
corresponding reduction in their contribution. It was admitted
that the Government of India’s share would be automatically
reduced in cases where they paid a proportion of the actual
expenditure, and that their suggestion, therefore, only referred
to those cases in which they paid a fixed contribution.
134. In their reply, the India Office The department of the British Government to which the Government of India reported between 1858 and 1947. The successor to the Court of Directors. reminded the
Government of India that the fixed payments made at that time
by the Government of India towards the cost of diplomatic and
consular expenditure were as follows :-
On account of Chiengmai
£1,000. 0. 0.
On account of Jeddah
790. 0. 0.
On account of Tengyueh (Momein)
410. 0. 0.
On account of Persia, (remnant of
general contribution)
487.10. 0.
TOTAL
£2,687.10. 0.
They pointed out that the contribution in respect of Persia,
which was still intended to equalise expenditure as it stood in
1900, could not possibly be affected by the present proposal.
With regard to the other items, they reminded the Government of
India of the enormous rise in the cost of salaries and other
expenditure connected with the Consulates which had taken place
since the time when the amount of the Government of India's
contribution had been fixed, and gave it as their opinion that
there was a grave risk that if the question of a rebate were
raised with His Majesty’s Government, they might reply with a
request for an increase, which it might in the long run prove