File 619/1907 Pt 4 'Arms Traffic: Persian Gulf - Blockade (correspondence 1909-1911).' [‎121r] (246/761)

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70
No. 33-M. F. of 1910.
GOVERNMENT OF INDIA.
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FINANCE DEPARTMENT. Ud^j
(MILITARY FINANCE.)
To
14 NOVI 910
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THE EIGHT HOHOUEABIH YISOOUJJT MOKLET OF HUCKBMH, O.M.,
Nts Majesty's Secretary of State for India,
Si?nla, the 2^11 October igro.
My Lord,
With reference to our telegram of the 10th August 1910, we have the
honor to forward for Your Lordship’s information a copy of the latest revised
estimate of the extra expenditure involved in the maintenance of the Naval
blockade in the Persian Gulf The historical term used to describe the body of water between the Arabian Peninsula and Iran. .
2. The estimate shows the cost during 1909-10 and for 8 months (up to the
end of November) in 1910-11, based on the scheme of operations recommended
by His Excellency the Naval Commander-in-Chief on the East Indies Station
in May last ; also the probable cost during the remainder of the current
official year, and for three months in 1911-12 if the operations are continued on
the same lines after November 1910. According to this estimate the total cost
of the operations to the end of 1910-11 is Rs. 28,73,520, and if the operations
are extended beyond that date the additional extra expenditure would amount to
about Rs. 1,11,000 per mensem.
3. The revised estimate does not include the cost of preparation of any
of the Royal Navy vessels employed on the operations. We understand from
• Received with Your Lordship’s despatch, No. letter No, 4322, dated the 27th June
68-Political, dated the 22nd July 1910. 1910, from the Admiralty, that Indian
revenues are liable for the cost of the special fittings for the “ Odin " and
“Alert ”, and we assume that the claim on this account will be adjusted direct
by 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. .
4. With reference to Your Lordship’s telegram of the 26th September 1910,
we are considering the question of organising a military mobile force for operations
from Robat, and will shortly submit our views on the subject. 1 he cost of such
operations has not yet however been estimated,nor are we in a position to say
what consequent reduction will be possible in the scale of Naval operations.
Excluding the possible military operations the cost of^ which, if they are under
taken, can be met without difficulty from ordinary savings, we anticipate that the
cost of the Arms Traffic operations during 1910-11, as now being carried out,
will be met from the existing provision (Rs. 26 lakhs One lakh is equal to one hundred thousand rupees ) in the estimate for the
current year.
5. To avoid confusion in the adjustment of expenditure connected with the
operations we have issued instructions to our accounts officers as to the charges
which they should adjust in India, all other charges being adjusted at Home in
such manner as Your Lordship may direct, in consultation with the Admiralty,
having regard to the normal subsidy of 100,000 a year paid for the three
subsidized vessels of the Royal Navy and to the special subsidy of about f'jjOoo
I 2 NOV. 10