File 1262/1915 Pt 2 'Persia: Financial assistance: The Moratorium' [‎328v] (420/424)

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the Chancellor of the Exchequer on 19th August* and the present letter and
enclosure) the Lords Commissioners will note the substantial agreement ^
between him and them on all points of immediate importance and^will see
their way to reply in the sense that previous communications had led him to
expect to the stringently curtailed proposal contained in the Memorandum
now forwarded.
I am, Ac.,
The Secretary, Treasury. Lionel Abrahams.
Annex :— Memorandum for the Chancellor of the Exchequer.
Capital requirements of India in 1915-1G and 191G-17.
4 he capital expenditure of the Government of India is incurred mainly
on railways and irrigation works. A standard of the annual expenditure
to be incurred in ordinary years has been accepted and publicly announced
as follows :—
£
Railways - - 12,500,000 Accepted on the recommendation of the
Departmental Committee on Indian
Railway hiuance and Administration
. . of 1907-08.
iligation Works - 1,000,000 Based on the recommendations of the
Irrigation Commission of 1901-03.
The remaining object of capital expenditure, viz., Government buildino- s
at Delhi, is of comparatively small amount.
Before the war, the expenditure on Railways and Irrigation Works was
close to the standards just mentioned. Thus in 1913-14 and 1914-15 it was
as follows :—
1913-14.
Budget Estimate.
Actuals.
Railways
Irrigation
-
£
- 12,000,000
- 1,479,000
£
12,306,300
1,298,000
1914-15.
Railways
Irrigation
-
- 12,000,000
- 1,214,000
11,632,400
1,178,000
In the Budget for 1915-16 (as subsequently revised in consultation with
the 1 reasury) the provision for capital expenditure was as follows ;
Railways
Irrigation Works
£
7,767,000
1,108,000
The substance of this Statement will be seen from the following telegram
Secretary of State to Vicex-oy, dated 19th August 1915.
nn C0 ?^ e \ tial discu W or b at which I was represented, was held 19th August between
( hancellor of Exchequer and representatives of Dominions, about provision for next vear's
capital expenditure A scheme was discussed for advances by Treasury instead of senarato
issues such as provide for this year's expenditure. If carried out, there will be very severe
.restriction of amounts of such advances. For the present we can leave open question whether
\\e should gam by joining. But further discussion takes place in middle of September and
in case we should decide to join, we should by then be prepared with following rough
provisional estimates(1) 1 otal proposed capital expenditure, which should include nothin^
or new projects and lowest possible figures for others; (2) Proposed L dian loans :
(•>) Capital required from London.
Please furnish by time stated such figures as you can for Railways, Irrigation and New
Delhi leaving to me to insert particulars of maturing obligations in England. Your’estimates
will, of course, be somewhat conjectural, but will be better than nothing.