Papers of the Interdepartmental Conference on Middle Eastern Affairs [‎21r] (41/290)

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APPENDIX I.
FINANCIAL POSITION IN MESOPOTAMIA AND PALESTINE.
THE points which appear to merit discussion are :—
1. The provision of funds, and
2. Financial control.
(A.) —Mesopotamia.
1. Financial Control.
So far as the Treasury are aware, the present arrangements are satisfactory.
2. The Provision of Funds.
1. Capital Expenditure.
The Treasury have been asked to sanction capital expenditure on railways to an
amount which has not been stated officially, but which is understood to be roughly
312,000L in the coming financial year, with a total liability of 500,000L But it is not
clear whether this figure includes cost of labour, which is presumably provided at present
from military personnel, but for which civilian labour will doubtless have to be substi
tuted as demobilisation proceeds.
The Treasury have also been warned semi-officially that the military authorities
are proposing to incur expenditure on houses in the occupied territory, but no further
details have been furnished.
2. Current Expenses.
So far as the Treasury are aware, current expenditure in the occupied territory is
being covered by revenue, and it is presumed, therefore, that no provision will require
to be made in the Estimate in 1919-20.
(B.) —Palestine.
1. Provision of Funds.
There appear to be no proposals for expenditure of a capital nature. As regards
current expenses, the position appears to be as follows :—
(a.) O.E.T.A. South —
The G.O.C. has a general authority to make any necessary advances for current
expenses to be repaid from revenue as received. So far it appears that revenue has
been generally adequate to meet expenditure, and no net deficit has been reported.
On the other hand the Budget for 1918-19, prepared by Colonel Gabriel in October
last, shows an estimated deficit of £ E. 76.836 for the year (excluding the revenue
assigned to the Ottoman Public Debt). It may be that revenue will increase in
1919-20 and be sufficient to cover expenses, but the question should be considered
whether a provision should be made in the estimates to meet a possible deficit.
(b.) O.E.T.A. East—.
So far as the 1 reasury are aware the following sums have already been advanced
from army funds :—
£
Already sanctioned ... ... ... ... 120 000
Asked for and apparently advanced from army funds, but
not yet sanctioned ... ... ... ... 70,000
(c.) O.E.T.A. West—
Advanced up to the end of December...
Advanced up to the end of Januarv ...
Said to be needed in February
[987]—186
70,000
77,000
77,000
D