مجموعة ٣٠ /١١١ "محطات بحرية بريطانية في: إنشاءات في خور قوي والبحرين. إخلاء هنجام وباسعيدو." [و‎‎٢‎٦] (١١٥٤/٥٦)

Phase 3.- The third phase is reached when, in addition to the Local Defence
Force, a sea-going squadron is provided by the Dominion for service
based on its own home station.
Phase 4 .—In the final stage, each State forming part of the Empire should be
capable of providing, in addition to the Local Defence Force and the
Squadrons for service in peace on its own home station, a subs
tantial part of the general scheme of naval defence, and more parti
cularly of the Main Fleet, whether in the shape of additional cruiser
squadrons or of capital ship units.”
W e have, m practice, tended to pass over the first stage and to concentrate our
attention on the second and third stages referred to above. W r e attach no less
importance than our predecessors to the considerations that actuated Lord
Rawlinson’s Committee in making their recommendations. In fact we realise
that any reduction in the number of sea-going ships of the Royal Indian Marine
would have disastrous effects on the future of the force and would largely nullify
the progress of the last few years. It would be a retrograde step that we should be
most reluctant to take even in the last resort; and it is one that is opposed no less
by the Naval Commander-in-Chief than by ourselves.
5. At this point, however, financial considerations emerge and, as usual, domi
nate the situation. If there is one thing more certain than another, it is that we
shall be unable for several years to come materially to increase our Defence expendi
ture by launching into new developments. However much we may agree therefore
as to the necessity for devoting more attention to what should, perhaps, have been
the first stage in India's naval development, however desirable it may also be even
tually to expand the strength of the Royal Indian Marine by adding extra ships,
there can be no question of augmenting our existing Marine budget for either of
those purposes at the present moment. It is a question rather of the Relative
importance of the various objects in view and the best possible allocation of funds
between them without raising the present general level of expenditure. That level
may be taken to be in the neighbourhood of Rs. 65 lakhs, to cover both effective
and non-effective charges ; and when the money available in the Kidderpore Dockyard
Suspense Fund is exhausted, after we have paid the full cost of the new sloop
“ Indus ”, the most that we shall be able to afford for any programme of replace
ment or new construction is some annual contribution towards the establishment
of a Sinking Fund for the purpose.
6. On this understanding we have carefully examined the structure of our
present Marine budget and have come to the conclusion that we must raise again
the whole question of the contribution of £100,000 and the other payments that
we now make towards the cost of His Majesty’s Navy. The suggestion was made
in our Marine Despatch No. 17, dated the 4th September 1930, that the time had
come to review these payments, but later (see our telegram No. 733-S., dated the
11th March 1931) we agreed that it would be inopportune to pursue the matter
pending the examination by the Capitation Tribunal of the larger question of a
contribution from Imperial revenues towards the cost of the Army in India. The
Tribunal has now given its award and we understand that His Majesty s Govern
ment did not press the question of naval expenditure in the course of its proceed
ings. The position therefore appears to be open for examination on its merits
and we desire to give a fuller exposition of our view’s with regard to it than we have
attempted since our Finance Department Despatch No. 260, dated the 23rd July
1914.
7. At the outset we desire to make it clear that our object in raising the ques
tion is not in any way to divest ourselves of responsibility or to reduce the amount
of money that we now devote towards naval defence in general. On the other
hand our desire is to accept the fullest possible responsibility for the local defence
of Indian ports and harbours in accordance with what we conceive to be the wishes
of the Admiralty and to give effect to that responsibility in the most practical way
by spending money in the discharge of it. We freely acknowledge the immense
MS 6 ADM