Coll 1/49 'Aden. Administration and control: changes consequent on Indian constitutional reforms; transfer to HMG' [‎449v] (907/968)

16
RECORDS OF THE JOINT COMMITTEE
OS INDIA*
20° Novembris, 1933.] Memorandum by the
Secretary of State for India.
[Continued.
regards the civil administration, she would hand over an approximately
even balance. The actual figures of civil revenue and expenditure for the
years from 1927-28 to 1933-34 are as follows: —
Years.
1927- 28
1928- 29
1929- 30
1930- 31
1931- 32
1932- 33 (revised)
1933- 34 (budget)
Bevenue.
Expenditure.
Surplus+
Deficit —
Lakhs One lakh is equal to one hundred thousand rupees .
Lakhs One lakh is equal to one hundred thousand rupees .
Lakhs One lakh is equal to one hundred thousand rupees .
7-46
13-69
- 6-23
10-86
12-23
- 1-37
12-18
11-16
+ 1-02
10-28
12-46
- 2-18
12-04
11-39
+ 0-65
13-64
11-02
+ 2-62
12-22
11-36
+ 0-86
For these seven years the average balance is a deficit of Its. 0.66 lakhs One lakh is equal to one hundred thousand rupees ,
or, if the year 1927-28, which was abnormal, be excluded, a surplus of
Rs. 0.27 lakhs One lakh is equal to one hundred thousand rupees . For the year 1932-33 there was a comparatively large
surplus of Its. 2.62 lakhs One lakh is equal to one hundred thousand rupees , due to the rise in income tax receipts in Aden
in that year. There was a small and precarious surplus /in 1931-32 of
Rs. 0.65 lakhs One lakh is equal to one hundred thousand rupees and in 1933-34 (budget estimate) of Rs. 0.86 lakhs One lakh is equal to one hundred thousand rupees due to
retrenchments. The only qualification of the statement that an approxi
mately even balance would be handed over is that some part of the income
tax paid in India in respect of Aden may be lost under the provisions
for relief from double income tax; the Government of India are naturally
unable to give any exact estimate of this figure, but say that they may
have to lose a lakh One lakh is equal to one hundred thousand rupees or two.
Effect of transfer on trade.
10. It has also been suggested that if Aden is transferred, Indian trade
would be lost and Indian merchants would leave and that this has been
the result of the transfer of Somaliland to the Colonial Office in 1905. (Prior
to that date Somaliland was administered by the Resident at Aden from
1884 to 1898, and by the Foreign Office from 1898 to 1905.) It is stated
that traders (Indians, Jews and Arabs) have left the Somaliland ports owing
to high taxation resulting from costly administration. However this may
be, there is, as a matter of fact, no basis for the comparison between Aden
and Somaliland. I understand that a reason why the Somaliland ports
have decreased in prosperity is the difficulty in that country of levying
direct taxation, owing to the unruly character of the inhabitants, with
the consequence that the administration is the more dependent on import
duties. But the position at Aden is exactly the reverse, as Aden is a
free port and the cost of the administration is met by direct taxation.
Effect of transfer on Aden salt.
11. Indian salt firms at Aden fear that their interests would be adversely
affected by transfer. The position is that salt made in Aden is at present
exempt from the additional import duty in India imposed by the Salt
(Additional Import Duty) Act of 1931, as amended in 1933, and accord
ingly shares with salt made in India the advantage of a preference over
other “ foreign ” salt. Under the operation of the Act of 1931 this prefer
ence was 4J annas per maund, but by the Act of 1933 it has been reduced
to 2^ annas per maund. If Aden ceased to be part of India and no
concession were made to Aden salt, it would lose this preference. This is
5,
Jed k salt ,
e Indian I^ 18
j el see® ^
, tkP case, tne
Ade
of the
-fj Jiti® coata
j, dill June in
"iD jieet any reas
jgeeraed. The s
pjHiiinderstandin
.sile contribution
lave been d(
pliooid continue
the assun
of attentior
[finances 3 (mail
,jat standard of t
j regards 3, I woi
3 the point of vie
ait of the policy <
^ b financially u
raits transit trade
tnsoiily qualified b;
■ nMnic situation
tM may have ove
;s ipose any add
iwh a course be
i necessary." Thi
?) Government coul
ling of assurance 1
winel would be
e took place," has
a of the admini
fife Indian Sen
h interpreted to r
swing among the
and that the r
Sflitit the meaning
are prepared
?diden, all Ind:
transfer .would
®tlen serving,
: »cies occurred,
piffle would he a
^understood tl
^ «definite ter
i'daim to Indian
■ fl'O their agreei