‘WAR DIARY. ARMY HEADQUARTERS, INDIA. […] I.E.F. “D”. Volume 41. PART II. (From 16th to 31st December 1917).’ [‎85r] (174/508)

No. 290, dated Delhi, the 25th November 1916.
Despatch to His Majesty’s Secretary of State for India,
In continuation of paragraph 6 of our Einance Department despatch
No. 129, dated the 26th May 1916. on the subject of the adjustment of the
receipts and charges of Basrah Administration we have the honour to inform
you that, upon reconsideration, in consultation with the local authorities, we
have decided to debit the expenditure of officers employed on political duties
in Mesopotamia in the accounts of the Basrah Administration and not in those
of Eorce “ D.” It is true that these officers were originally appointed in
connection with the requirements of the Indian Expeditionary Eorce ; but the
more important part of their duties is at present connected with the administra
tion of the occupied territory. We think, therefore, that the expenditure is
properly charegable to the revenues of the territory. The expenditure is,
moreover, incurred under the control of the Chief Political Officer, in his
capacity as Chief Staff Officer of the Army Commander in Mesopotamia in
respect of the administration of the occupied territory, and is not controlled by
the Army Commander in his capacity as Chief of the Indian Expeditionary
Eorce. The most convenient arrangement, in our opinion, will accordingly
be to compile the expenditure in the accounts of the occupied territory.
2. As already explained in our despatch of the 26th May 1916, it is
immaterial, for the purposes of financial adjustments between the Imperial and
Indian Governments, whether these charges are recorded in the accounts of the
Basrah Administration or as recoverable war expenditure connected with Eorce
“ D.” Credit will be given in the accounts of the Basrah Administration, with
reference to the principles explained in paragraph 4 of our despatch of the
26th May 1916, for the ordinary pay and allowances of all officers of the Indian
Government who are employed on political duties in Mesopotamia and who
have not been replaced in their appointments paid from Indian revenues.
Telegram, dated T2th February 1917.
(Received 13th February 1917.)
From—The Secretary of State for India, London,
To—The Viceroy (Finance Department).
Your letters dated 26th May, No. 129, 25th November, No. 290. Basrah
Administration, I have transferred to Treasury £150.000 as first instalment
net receipts. Please issue instructions for submission to me periodically of
statements 6 copies of receipts and charges with a view to further transfer.
Statements should contain certificate of audit as in case of war accounts.
Vouchers need not be sent. VFith reference to paragraph 4 of earlier letter
and paragraph 2 of later one, Treasury agree that saving to your Government
on class 3 officers should be retained by you.
Telegram No. 1506-Est. R, dated 1/th July 1916.
From—The Viceroy, Simla,
To -The Secretary of State for India, London.
Please refer Government of India despatch No. 129, dated 26th May,
regarding adjustment Basrah receipts and charges We have received and
considered Sir Percy Cox’s views regarding control and audit of expenditure of
administered territory and recommend introduction following arrangements :—•
A.— Powees of Sanction.
(1) Subject to your previous approval, or confirmation, where necessary,
Government of India to sanction creation of appointments to be filled by
officers Imperial Services and variations pay and allowances such appoint
ments ;
(2) Army Commander to sanction other appointments referring or report
ing to Government of India cases where pay and allowances exceed Rs. 800
per mensem;
(3) Army Commander to have full powers regarding travelling allowances
including authority to vary standard rules freely as "local conditions may
require;
(4) Army Commander to sanction public works on regular estimates up
to maximum limit Rs. 50,000 each case, and without estimates to Rs. 5,000 in
urgent cases;
(5) Army Commander to have no powers to grant pensions or gratuities
to officials of Local Administration or to their families;