File 3839/1916 Pt 1 'Persia: - Incidence of expenditure in - question of revising the agreement of 1900' [‎420r] (858/880)

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Persian and Oman Operations.
1 .
Telegram from Viceroy to Secretary of State, dated
27th October 1915.
In connection with European War we have sent additional troops to
Muscat and to various parts of Persia not included within sphere of the
operation of Force “ D.’’ Expenses of these troops have been hitherto met from
Indian revenues, but our Oomptroller-Oeneral doubts whether this arrange
ment is permissible in view of provision of Section 22 of new Government
of India Act. Having regard to view recently taken by you in connection
with incidence of charges of regulars transferred to Home establishment,
we think that incidence of cost of above-mentioned troops should be governed
by Houses of Parliament Resolutions of 26th November last? Usual
arrangement in case of Persia in recent years has been that entire expendi
ture on Indian troops employed in connection with local disturbances and
apart from arms traffic operations has been shared in moieties between
Imperial Government and Government of India (see your telegram dated
21st November 1912 regarding troops in Persia). It would seem, however
that this arrangement, which is in accordance with the AVelby Commission’s
recommendations, and which would be more favourable to India than that
now proposed by us, has been superseded for the period of war by resolution
cited above. We should be glad to receive early instructions in the
matter.
Sir,
E. 5722/15.
2 .
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. to Treasury.
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. ,
20th January 1916.
I am directed by the Secretary of State for India in Council to
forward, for the consideration of the Lords Commissioners of the Treasury,
* Dated 27th October 1915. a C 0 P>' ? f . a telegram* from the Govern-
ment of India regarding the incidence
of cost of troops from the Indian establishment employed in Oman and
Persia during the war.
With reference to the concluding portion of the telegram Mr. Chamberlain
is inclined to think that it is impossible to forecast with accuracy at the
present stage whether a division of the charges on the basis of the Resolution
,,, . of 26th November 191It would or
ojry eno ostL.+ would not be less favourable to the
revenues of India (and more favourable to Imperial revenues) than a division
in accordance with the pre-war arrangements, under which India bore the full
cost of the troops employed in Oman, and was normally liable for half of the
cost of any troops employed in Persia otherwise than in the suppression of
the arms traffic. The effect from this point of view of the alteration of system
would depend on the realised proportion of “ordinary ” to “ extraordinary”
expenditure, the latter increasing with the expensiveness of the operations
in which the troops are engaged. The troops at Bushire (one battalion of
infantryjand details), for example, and those at Chahbar (about 100 strong),
Jask (about 200 strong), and Muscat (about 760 strong), are, and are likely
to remain immobile, so that the extraordinary expenditure on them will
probably be small, whereas the troops in Seistan (about 600 infantry and
350 cavalry) are intended to be highly mobile.
Mr. Chamberlain is of opinion, however, that a division of the charges
in accordance with the Resolution of 26th November 1914, is appropriate
in itself. This method of division has now been applied to the Indian
troops operating in Franco, Egypt, Gallipoli, and East Africa; to the
additional Indian regiment sent since the commencement of the war to
+ See File 2, (2) July issue.
19385.—25. J3