'Aden' [‎37v] (4/6)

4
themselves to uccept, the induxu Ijei^ishituie would ceitcimly decline- to i<itii^ theii
action. , , . . . , , ,
On the 14th December 1921 the Viceroy telegraphed privately that, although
Indian feeling now appeared to be opposed to a transfer on any terms, he would be
prepared to endeavour to obtain assent to transfer, coupled with a contribution of
200,COOL a year from Indian revenues; but lie w r as very doubtful of success, and
suggested that it might be better to propose only 100,000/. a year, which India might
regard as reasonable as being His Majesty’s Government’s nominal contribution to
Indian revenues under existing circumstances.
Several months later the Colonial Oflice suggested that the whole question
mi "lit be considered by an inter-Departmental Conference, and it was in fact discussed
at a meeting of the Middle East Committee at the Colonial Office on the 21st October
1922. At that meeting, 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. representatives endeavoured to put the
discussion of incidence of expenditure on some definite basis of principle. Taking as
a starting-point the Report of the Welby Commission, which held that the British
Empire apart from India, w'as interested in Aden to the extent of one-halt, it was
pointed’out that, since the date of this Report (1900), the proportions of Imperial
relative!v to Indian interest had been greatly increased by the acceptance of new
British responsibilities in the Middle East (especially in connection with oil), the
development of Australia, New Zealand, the Straits Settlements and Ceylon, and
the rise of Japan. It was suggested tentatively that India’s contribution to the
expenditure on Aden might now be assessed at one-third instead of a half.
The Secretary of State at the same time telegraphed this suggestion privately to
the Viceroy mentioning also that General Scott hoped to be able to reduce the total
military expenditure to 415,000/. The Viceroy in reply expressed his willingness to
endeavour to put through a proposal on these lines if liis Majesty s Government
would make one ; but Indian opinion had continued to harden, and wms now set on
On the 24th January 1923 Lord Peel wrote (privately) to the Duke of Devonshire
suggesting that, taking 450,000/. a year as the military expenditure the annual
Indian contribution to the total cost of Aden should be fixed at lo0,000/. a year,
subject to revision after five years, it an offer on these lines were forthcoming,
Lord Peel would be prepared to abandon the claim to retrospective effect prior to
1st April 1920. , .
On the 20th February the Duke of Devonshire replied that this solution was
“quite unacceptable” to “the Colonial Office. On the 8th March Lord Peel wrote
pointing out some apparent misapprehensions on the part of the Colonial Office, and
asking for a more explicit statement of the Colonial Office position. 1 o this letter no
reply has been received. . _ , . rl ni . , , ,
•Meanwhile the Government of India had on the 5th l ebruary telegraphed
officially offering to advocate the transfer of Aden in the Indian Legislature on the
basis of India being relieved of all but one-third of the net cost, subject to a maximum
of 150,000/. in any one year, on the understanding—
(1) that expenditure connected with the Imam and the Idrisi should be excluded ;
and |
(2) that the question of retrenchment, and especially military retrenchment,.
should be investigated by a special Committee.
If transfer were made on this basis, they were prepared to waive the claim to
retrospective readjustment from 1917. In the alternative, they were prepared to
resume full control of Aden and the Protectorate; and they pointed out that in this
case also iinancial readjustment was clearly necessary. I hey considered t hat
equitably His Majesty’s Government should now be asked to contribute two-thirds ot
the net cost of Aden and the Protectorate ; but they W'Oidd nevertheless be w illing to
accept a contribution of one-half. They stipulated that all political and military
expenditure involved by relations with the Imam and the Idiisi (of which they, were
willing to assume control, under His Majesty s Government) must continue to be
borne entirely by His Majesty’s Government.
Finally, they suggested as a possible way out of existing difficulties a com
promise under yvhich the existing temporary arrangements would be legulansed
and developed. The Aden Settlement would remain part of India, and the civil and
municipal administration yvould be retained under the Government of ludia , al
the rest, military administration included, yvould be transfened to His Majesty s
Government. Under an arrangement on these lines, they yvould be prepared to