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5488/07.

PUBLIC ACCOUNTS (ARMY VOTES, 1906–7).

TREASURY MINUTE, dated the 22nd March 1907, under Section 4 of the

Appropriation Act, 1906 (6 Edw. 7. c. 26), authorising the temporary application of surpluses on certain Army Votes for the year 1906–7 to defray excesses on other Army Votes for the same year.

MY LORDS have before them a letter from the War Office, dated the 22nd instant, setting out the probable surpluses and excesses on Grants for Army Services, 1906-7, accompanied by explanations showing that it would be detrimental to the public service to postpone the expenditure causing those excesses (as detailed hereunder) until provision could be made for it by Parliament in the usual course ; and proposing, therefore, to defray such excesses temporarily out of surpluses.

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Under the powers conferred on them

conferred on them by Section 4 of the Appropriation Act, 1906, my Lords authorise the foregoing excesses, amounting to 32,0001., being defrayed temporarily out of the foregoing surpluses, amounting to 848,0001.

COPY of CORRESPONDENCE with the WAR OFFICE.

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Copy, 10/719 (F. 1).

War Office, London, S.W., SIR,

22nd March 1907. I am commanded by the Army Council to request you to lay before the Lords Commissioners of His Majesty's Treasury the enclosed statement of probable surpluses and deficits on the several Army Votes, 1906-7, including the Supplementary Vote recently taken ; to assure their Lordships that the deficits shown were unavoidable, and that the expenditure giving rise to them could not have been postponed without detriment to the public service; and to move them to sanction, under the powers conferred on them by the Appropriation Act, 1906, the temporary application of the surpluses to meet the deficits as shown in the statement.

It will be seen that on the account as a whole a net surplus of some 1,193,0001. is anticipated, of which 816,0001. arises on expenditure and 377,0001. on Appropriations in Aid. As regards expenditure, the main causes of the surplus are as follows :--

(1) The reductions effected in the Army (men and horses) during the year 1906–7. As announced in the Secretary of State's Memorandum relating to the Estimates of the year, they provided the money necessary to carry on the Army, at the establishment authorised by Parliament, for the whole year; but the considerable reductions effected in the establishments in 1907–8 have to a very large extent been anticipated during the current year in the shape of reductions of

actual strength and disbandment of units. (2) Savings on the Medical, Militia, and Yeomanry Votes owing to the anticipated increases in strength not having been realised; and on the Volunteer Vote owing to a falling off in the numbers attending camp,

in spite of an increase in the strength of the force. (3) Reductions in the prices of rations and forage. (4) Delays in the execution of orders for clothing, stores, armaments, and

works. The surplus Appropriations in Aid arise principally from deferred payments by Canada in respect of Imperial troops at Halifax and Esquimalt in 1905-6, and of stores, &c., taken over on transfer of those fortresses to the Colonial Government, from increased contributions from Egypt and the Straits Settlements, from sales of horses on reduction of establishments, and from increased issues of stores and clothing on repayment.

Their Lordships will not fail to recognise that the figures now given are estimates, based upon the best information now available, of the probable expenditure and receipts; and that owing to the unavoidable uncertainty as to the contractors' bills which will mature for payment within the year, and to other causes, some variation from these figures must be anticipated.

The Secretary, Treasury.

I am, &c.,
(Signed) E. W. D. WARD.

ARMY ESTIMATES, 1906–7.

FORECAST of probable SURPLUSES and Deficits on the several VOTES.

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11, Educational

5,000

8,000

Due to savings on regimental

Services.

schools and to the cadets at
Sandhurst being fewer than
estimated.

Due to decreased contri

butions of cadets at Sandhurst.

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Forecast of probable Surpluses and Deficits on the several Votes-continued.

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Jamaica 2/25 (W.F.).

War Office, London, S.W., SIR,

15th March 1907. ADVERTING to the last paragraph of your letter dated the 16th ultimo, No. 3080/07, on the subject of the reconstruction of barrack buildings destroyed by the recent earthquake in Jamaica, I am commanded by the Army Council to acquaint you, for the information of the Lords Commissioners of His Majesty's Treasury, that an estimate has now been arrived at of the cost of reproviding the barracks at Up Park Camp, to house the garrison in accordance with the latest approved establishments.

Taking into consideration the fact that a large quantity of old material will be available from the wrecked huts for utilisation on the new buildings, and that many of the old sites can be used, it is anticipated that the scheme of rebuilding will cost 80,0001.

This total includes a sum of about 39,0001. which it is anticipated will be required to cover expenditure on necessary accommodation which can be provided locally, but which will not be commenced until more definite proposals have been received from the station, and, if approved by the Army Council, reported in due course to their Lordships.

In the meanwhile, the Army Council are most anxious to proceed at once with the expenditure of the first portion of the estimate, viz., 41,0001. This sum covers the provision of hutting for the troops and bungalows for the officers, the materials for which will have to be purchased in this country, and I am to request that their Lordships' sanction may be obtained to this Part 1 service being commenced at the earliest possible date.

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