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CLASS V.—continued.

VOTE 2.—COLONIAL SERVICES--continued.

Capitul to meet War Pensions. In addition to the sum of 13,708l. 128. mentioned in last year's Report as the Capital Value of the War Pensions, a further claim for 7,0371. 88. id., the Capital Value of certain other Pensions and a sum of 451. 128. for temporary Pensions have been included. It is stated that the amount of 7,0371. 8s. ld. is the Commutation Value of new Pensions incurred through the War, and I have suggested to the Colonial Office, that before a final settlement is arrived at, the Account should be submitted to the Treasury, with the object of ascertaining Their Lordships' views as to these additional pension charges.

The proposed further Charges. The Account as rendered showed an unexpended Balance of 64,1831. 11s. 9d., but the Colonial Office were unable to agree to the surrender of this amount, pending a further reference to South Africa, as to whether that Balance was not liable to reduction by further sums chargeable to the Grant. The Amounts in question were 39,9631. 28. 30. for Head Quarters payments, South African Constabulary, and 2,7831. 98. 4d. for Civil Administration and Constabulary Charges, which had both been included in the general settlement between His Majesty's Government and the New Colonies.

It appeared to me from the evidence at my disposal, that, as stated in paragraph 4 of my Report on this Account for the year 1903-4, the former of these two amounts had already been charged to the Grant. It was seen also, from details of the sum of 2,7831. 98. 4d. transmitted with the correspondence, that it included an amount of 1,9741. 138. 7d. for Indian Clothing Charges which had been reported by the High Commissioner to have been finally charged to the Grant in Aid.

I have recently communicated to the Colonial Office my objections to these proposed further charges, but, as yet, have received no reply.

GRANTS IN AID_TRANSVAAL AND ORANGE RIVER COLONY. 4. I have received a copy of the final Report of the Central Judicial Commission which Free Grants shows, as was anticipated in paragraph 5 of my Report for last year, that the Awards to Burghers

of the late made by the Commission were in excess of the Grant of 3,000,0001.

Republics. 5. With reference to paragraph 6 of my Report for the year 1904–5, I have been informed Grant to by an Officer of my Department on duty in South Africa that, on 30th September 1906 other the balances remaining unexpended out of the Grant of 2,000,0001. for other persons Persons in amounted to 54,3411. I understand, from a copy of a notice in the Transvaal Govern- respect of

War losses, ment Gazette that the account was to have been finally closed on 31st December 1906.

2,000,0001. I hope, therefore, to be in a position to report on the Account for 1906–7 the amount which will be available for surrender.

WESTERN PACIFIC---CHARGES ON ACCOUNT OF BOAT'S CREW. 6. The charge to Sub-Head R 2, Western Pacific High Commission, Travelling and Sub-Head other expenses, includes 2721. 08. 6d. for the pay and rations of a boat's crew and R 2. Boat's 231. 138. 4d. fees for recruiting two natives, charged by the Deputy Commissioner, New Crew

charges, Hebrides.

New

Hebrides. From papers transmitted with the Account I gather that this Officer, acting under a misunderstanding, had drawn the money for the wages and rations of a full boat's crew to cover the pay and rations of a smaller crew and various other items of expenditure, such as recruiting fees, necessarily incurred in connection with the upkeep of the crew.

The Colonial Office, having no doubt that the whole amount had been expended in connection with the crew, passed the payments against the year 1905-6 after calling upon the Officer concerned to furnish a statement of the actual appropriation of the expenditure. In view of the discrepancy between the several certificates of the Deputy Commissioner in support of the charges and the statements in the papers referred to, I recently enquired if the amended account could now be furnished, and have been informed, that, owing to the difficulties of communication with the New Hebrides, a reply cannot be expected for some time.

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CLASS V. continued.

VOTE 2.-COLONIAL SERVICEScontinued.

EXPENSES OF A SOUTH AFRICAN MISSION TO LISBON.

Sub-Head 7. A sum of 7091. 78. 10d. charged to Sub-Head S1, “South Africa, High Commissioner, Si.

Travelling and other expenses ” has been paid to the Inter-Colonial Council in reimburseExpenses of Vission to

ment of expenses incurred by the Consul General at Lorenco Margues and the General Lisbon-ab- Manager of the Central South African Railways in proceeding to Lisbon in connection sence of

with an alteration in the terms of the Modus Vivendi between the Transvaal and detailed

Mozambique, so far as regards Railway Rates. The Treasury sanctioned the reasonable information.

and necessary expenses of the Mission. Although the amount paid to the InterColonial Council has been charged against the Vote it may be subject to adjustment. I have made inquiries as regards certain payments for subsistence and for compensation to the Central South African Railways while deprived of the services of their General Manager, and have been informed by the Colonial Office that further reference has been made to South Africa on these questions.

CHARGE OF SUMS NOT PAID WITHIN THE YEAR.

Sub-Heads W and X. Charges in excess of sums advanced.

8. Sums amounting to 1,4651. 118. 1d. have been charged to this Vote in respect of a claim by the British South Africa Company. As money and stores to the value of 1,2441. 68. 2d. only had been advanced to the Company within the financial year, the charge in excess of this latter amount represents expenditure which at present is unsupported by the receipt of the Company.

CLAIM OF BRITISH SOUTH AFRICA COMPANY FOR ESCORT EXPENSE.

Sub-Head 9. The charges to Sub-Head W, on account of the delimitation of the AngloW. Special Portuguese Boundary, North and South of the Zambesi, includes a payment to the allowance to Escort.

British South Africa Company of 751. 108. for a special allowance assigned by the Company to the Officer who was in charge of the Escort. As it was a condition of the Treasury sanction to the expenditure on this Commission that the Escort should be provided by the British South Africa Company, I invited further explanation from the Accounting Officer in regard to this charge. In reply, I have been informed, that in view of the somewhat independent position of the Company in regard to the services which they rendered to the Commission, the allowance in question was regarded as properly chargeable against Imperial Funds.

CONTRIBUTION TO TROPICAL DISEASES RESEARCH FUND.

Z 2. Malaria Investigation.

10. The sum provided under Sub-Head Z 2, Malaria Investigation, as a contribution on behalf of the Exchequer-aided Colonies and Protectorates to a Fund for the investigation and prevention of Malaria and other tropical diseases, has been paid over to the Crown Agents for the Colonies and credited to the Tropical Diseases Research Fund. The Account of the expenditure out of this Fund is audited under my directions.

EXCHEQUER EXTRA RECEIPTS.

Refund on account of double charge. Refund resulting

11. A sum of 2731. 108. 22. has been credited to the Exchequer for the pay of certain from charges by two

carriers employed on the Anglo-German (Gold Coast) Boundary Commission which had Officers for been debited to Sub-Head R, Boundary Commissions, 1904–5, but has since been the same refunded because the payment had not actually been made. service.

CLASS V.- continued.

VOTE 2.- COLONIAL SERVICES—continued.

A certificate was given on the voucher for the amount in question by a Transport Officer of the Gold Coast Government that the carriers had been paid by him. It appears from correspondence transmitted with the Accounts that this Officer, in forwarding. the voucher, explained to the Gold Coast Treasurer that it had been made out for “adjustment purposes,” and that the money had been taken on charge as a deposit to be paid to the carriers upon their expected return. The carriers were, however, paid by the Chief Boundary Commissioner. In view of the importance attaching to certificates of payments of this description, I have invited the consideration of the Secretary of State as to the adoption of precautions to prevent the recurrence of similar cases of this character.

Gold Coast Debt.

12. As stated by the Accounting Officer in his explanation of variation under the head Estimated of Exchequer Extra Receipts, the lump sum payment of 100,0001., referred to in paragraph receipt from 7 of last year's Report, which it was estimated would be received from the Gold Coast Gold Coast

not realized. Government, has not been paid. In reply to an enquiry, I have been informed that this payment “will be made as soon as the loan out of the proceeds of which it is to be paid has been raised; but it is not at present possible to say at what date it may be deeined advisable to put the loan on the market.”

Fiji debt. 13. An additional sum of 2,0001. beyond the amount estimated, to which reference is Extra also made in the Accounting Officer's Explanation, was received from Fiji in repayment payment by of debt. This amount was paid to make up the instalment on account of the year 1904 Fiji on to the sum of 5,0001., in accordance with the arrangement referred to in paragraph 11 account of of my Report for 1903–04, under which the debt is being extinguished by annual payments of this sum.

GRANTS IN AID OF LOCAL REVENUES.

Grants in
Aid.

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14. Provision for the following Grants in Aid was made in the Estimate.

£. Sub-Head A. Gold Coast (Northern Territories) - 15.000 B. Northern Nigeria

320,000
C. West Indian Islands: Deficiency of 17,000

General Revenue
D. West Indian Islands, Steamer Subsidies 33,500
E. West Indian Islands, Botanic Stations, etc. 12,261
F. Bechuanaland

36,000
G. Wei-Hai-Wei

3,000 H. British Central Africa

32,000 I. British East Africa

- 214,000 J. Uganda

- 103,000 K. Somaliland

76,000

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These Grants in Aid have been issued in full, with the exception of that for West Indian Islands, Botanic Stations, etc., where the amount issued was less than the estimate by 3771. 178. 9d. in consequence of the revised requirements of Colonial Governments.

The accounts of the Gold Coast, Northern Nigeria, Bechuanaland, Wei-Hai-Wei, British Central Africa, British East Africa, Uganda and Somaliland are dealt with in paragraphs 21 to 25 of this Report.

The Accounts of West Indian Islands receiving Grants in Aid are not audited in my Department, but Statements of the Expenditure out of the Grants in Aid, where required, have been furnished. My remarks on these Grants in Aid will be found in paragraphs 16 to 20 of this Report.

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CLASS V.- continued.

VOTE 2.-COLONIAL SERVICES—continued.

Net Surplus.

8.

15. The Net Surplus to be Surrendered is, as shown by the Account, 7,5111. 08. 6d.

£.

d. Grant

1,266,703 Expenditure

1,259,191 19 6

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(Grants in Aid of Local Revenues.)

GRANT IN AID OF DEFICITS.
16. In paragraph 12 of my Report of last year it was stated that the balance of the
Sub-HeadC.
Grant,

Grants in Aid of deficiency of general revenue in certain West Indian Islands remaining 1905-6,

unissued in the hands of the Crown Agents on 31st March 1905 was 1161. 198. 6d. 17,0001.

In addition to this balance, the Grant in Aid, of 17,0001., for the year 1905-6 has been
paid over to the Crown Agents, making, with the addition of 471. 18. 9d. received for
interest
, a total sum of 17,1641

. 18. 31. available for the purpose of the Grant. Allotments
have been made to Colonies amounting to 3,2501. as shown in the Statement appended
to this Report.

The balance remaining in the hands of the Crown Agents on 31st March 1906 was
13,9141. 18. 3d.

The statements of account from St. Vincent and Montserrat (the latter Island received
St. Vincent Grants in 1904-5) showed a sinall surplus of local revenue over local expenditure in
and
Montserrat

1905-6. The Treasury have directed that the surplus of assets over liabilities on the liable to 31st March 1905, together with the Grant made to St. Vincent in the year under review, refund. should be regarded as liable to eventual refund. Having regard, however, to the narrow

margin of solvency and the uncertainty of the future, Their Lordships have held over
för a year the question of refunding the amounts involved, viz:-1,4411. in the case of
St. Vincent and 9721. in that of Montserrat.

A.

Sub-Head D. Grant, 1905-6, 33,5001.

STEAMER SUBSIDIES.
17. In addition to the balance of 931l. 7s. 5d. referred to in paragraph 14 of my
Report of last year, and to 551. 128. 11d, which has accrued as Interest, the whole Grant
of 33,5001., under Sub-Head D., has been issued, making a total sum of 34,4871. 08. 4d
available for this service in 1905-6.

The Expenditure during the year amounted to 32,375l., leaving, on 31st March 1906,
a balance of 2,1121. 08. 4d. in the hands of the Crown Agents.

1

Sub-Head E.
Grant,
1905-6,
11,8831 28 3d.

BOTANIC STATIONS, ETC.
18. Out of the amount provided under Sub-Head E., the sum of 11,8831. 2s. 3d. has
been allotted, as shown in the detailed Statement appended.

Including the balance of 8061. 88. 3d. referred to in paragraph .15 of my Report for
last year, the total amount available for this service in 1905-6 was 12,6891. 108. 6d.
In consequence of discrepancies in the accounts of Montserrat and the Virgin Islands the
Annual Statements relating to those Colonies have been returned to the West Indies by
the Colonial Office. Assuming that the amounts reported in the Annual Statements
referred to are maintained, the Expenditure out of the Grant was 11,9131. 108. id.,
leaving a balance of 7761. 08. 5d. on 31st March 1906.

B.

CLASS V.—continued

VOTE 2.--COLONIAL SERVICES--continued.

ROADS AND LAND SETTLEMENT.

Dominica. 19. The balance of 1741. 188. 3d. which, as stated in paragraph 17 of my Report for

Grant, last year, was standing to the credit of the Grant in Aid of Roads, etc., Dominica was 1897–3. increased by 158. 10d. for interest on money on deposit, making a total of 1751. 148. ld. Dominica, I have received Accounts for the year 1905–6 showing the expenditure of the final 15,0001. balance on this service.

St. Vincent. 20. The balance on the account of the Grant in Aid of Roads and Land Settlement,

Grant, St. Vincent, on 31st March 1905 was, as stated in paragraph 17 of my Report for last 1897–8. year 4,875l. 88. 7d. The receipts during the year amounted to 1,3651. 6s. 7d. and the St. Vincent, expenditure to 1,0081. 198. ld. leaving a balance on 31st. March 1906 of 5,2311. 168. 1d. 15,000l. of this balance, which has been increasing in recent years in consequence of the receipts from re-sale of land, etc., the sum of 4,6831. 18. 3d. was invested by the Crown Agents, leaving 5481. 148. 101. cash in the hands of the Colonial Treasurer.

GOLD COAST (Northern Territories), NORTHERN NIGERIA, BECHUANALAND,
WEI-HAI-WEI, BRITISH CENTRAL AFRICA, BRITISH EAST AFRICA,

UGANDA, AND SOMALILAND.

21. The examination of the Accounts of the Revenue and Expenditure of the Colony Examinaof the Gold Coast, of the Protectorates of Northern Nigeria, Bechuanaland, British Central tion of Africa, British East Africa, Uganda and Somaliland, and of the Territory of Wei-Hai-Wei Accounts. is carried out under my directions, in the Colonial Audit Branch of my Department.

This Branch of my Department, to the organisation and work of which I referred in Paragraph 3 of my Řeport last year on the Vote for Uganda and East Africa Protectorates and Uganda Railway (Class V., Vote 2), is being amalgamated with the Exchequer and Audit Department in accordance with the scheme of reorganisation to which reference is made in the Second Report of the Committee of Public Accounts, 1906.

In the Estimates 1907-8 for the Exchequer and Audit Departinent (Class II., Vote 14) provision is made for the headquarter establishment of the Colonial Audit Branch, the corresponding cost of which is repayable by the various Colonies and Protectorates whose accounts I audit, and is brought to credit under Appropriations in Aid. It is in contemplation to deal in a similar manner with those members of the Colonial Audit Branch who are serving as local auditors and assistant auditors in these colonies; but certain questions have arisen which require further consideration before the amalgamation can be completed.

As

Gold Coast.

22. The Grant to the Gold Coast Colony has been issued and duly accounted for. the Grant was a fixed amount of 15,0001. in aid of the expenses of the Northern Territories only, in accordance with the arrangement shown on the face of the Estimate, I have not considered it necessary to append the account of the Colony.

23. The Annual Accounts of the Protectorates of Northern Nigeria, Bechuanaland, Accounts, British Central Africa, British East Africa, Uganda and Somaliland, and of the Territory 1905-6. of Wei-Hai-Wei for 1905–6 are appended, together with the Statements of Assets and Liabilities on 31st March 1906. These accounts have been examined, and any questions which have arisen in the course of such examination have, as far as possible, been disposed of after communication with the respective Accounting Officers or the Secretary of State for the Colonies.

C to I.

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