File 2976/1916 Pt 1 'Persia Bunder-Abbas-Kerman telegraph and road' [‎274r] (251/452)

From I iceroji,Finance Department, .June 1917.
(Received at 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. , 9 aim., 9th.)
Your telegram of the 17th November 1916. Charge of Seistan levies
IMore rece.pt of your telegram our Auditor-General had challenge I proprietv
of debiting any part of cost of levies to Indian revenues on grotmds^deS
with those mentioned m your telegram. We agree with von that cost o a
irregular troops employed m East Persia to supplement regular troophsho,,Id
be tieated as part ot extraordinary expenditure on military operations and
should be charged as such to Imperial revenues m entirety m der Parl."-
mentary resolutions. Amended statements of secret service n ,vn e '-
the inaUer° S ^ ° f 6VJeS W ' 11 b6 funilshed ll P ou bearing your tmal decision in
2. Discussion of question of incidence of levies employed in Eastern
leisia has led us to reconsider the question of incidence of South Persia
Rifles. Our Auditor-General holds view that this force also regents hw
the time being body of irregular troops employed in military operations in
1 ersia whose cost cannot be met from Indian revenues under !he Govern-
ment ofLidm^t, but should be debited to Imperial revenues in entirety
Tf / ailiam entary resolutions. He cites in support of his view your telegram
of 2nd March last and your telegram of 31st March last 1916, concludino-
071 AT 'fmf am ° f !° th . March r 1916 ’ No - 434 D and your telegram
ot 11 h March 1916 regarding immediate object of Sykes’ Mission and force
laised by him locally, also fact that such local troops as he was able to raise
were employed during the past year mainly in counectioh with military
operations, and that our connection with force has been transferred on our
side to Commander-m-Chief and to Army Department. His contention is
turtner strengthened by present military organisation of force, which consists
ol units ol artillery, cavalry and infantry divided into brigades, and by recent
appointments to it of qualified General Staff Officer and experienced adminis
trative Staff Officer as well, as about 40 other military .staff and administrative
officers similar to those employed with a military division. He considers
that true nature of expenditure incurred by His Majesty’s Imperial and
Indian Governments in connection with force is that of subsidy to Persian
Government, and as this subsidy is being paid in pursuance of a definite
pobey adopted by W ar Cabinet lor the vigorous and successful prosecution
of military operations against Germany and Turkey in which His Majesty’s
Government is employed, expenditure should be treated as part of cost of
such operations and that no part of such expenditure can be charged to
Indian revenues under Government of India Act and parliamentary resolu
tions. His objection applies equally to meeting from Indian revenues any
part of various other items, so-called political expenditure, which is being
incurred by Imperial Government or by us in Persia in connection with war.
3. We regret we failed to obtain Comptroller and Auditor-General’s
ruling as regards expenditure at an earlier stage, but we consider that now
that his views have been expressed they ought to be accepted, and we gather
from your telegram of 17th November last under reply that they will prove
to be in accord with your own. If so, you will no doubt take the necessary
action.
. 4- Credit would of course be afforded with reference to accepted
principle for the normal cost of officers and men deputed from our peace
establishment for service with the rifles and other levies. Amount of such
credit [? will be] inconsiderable as it will be generally speaking limited to
ordinary pay and allowances of a few officers of Indian Political Department.
In the ease of military personnel no additional credit will need to be afforded
ni connection with calculation of India’s contribution in respect of Indian
Expeditionary Forces and assessment of extra expenditure in India necessitated
thereby. \V r e have already credited Imperial Government with the normal
cost of pay and allowances of our entire peace strength of officers and men.
As regards subordinate non-military establishment, e.g., clerks, any officer
deputed for service with the rifles and levies is generally replaced in his
substantive Indian appointment by another drawing full pay of appointment.
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