journeys made to European capitals, and to a decrease of 10,000l. in the receipts from Passport Fees due to the extension of the period of validity of Passports from two years to five years.

17. The Estimate for Diplomatic and Consular Services (Vote 2) shows a net decrease of 29,0301. There is a net reduction in the cost of services in China by 16,700., mainly due to movement in favour of Great Britain of the Hongkong exchange, and there are reductions of 4,000l. on the Refund to Indian Revenues in respect of Diplomatic and Consular Services in Persia, Arabia and Siam, 8,000l. on the Transport and Relief of Refugees from Asia Minor, and 14,300l. on the remanet payments to the United States Government in respect of relief to British subjects in Germany, Turkey, &c., during the War. On the other hand, provision of 10,355. is now necessary for payments of awards of the Tribunal set up under the Pecuniary Claims Arbitration Convention, 1910. There is a reduction in the anticipated fees of 22,8631.

18. An alteration has been made in the method of payment of the contribution towards expenses of the League of Nations which will secure that the amount payable in a financial year is accurately known at the beginning of the year. Under previous arrangements for the quarterly payment of the contribution the amount payable for the first three quarters of the year was accurately known, but the amount for the fourth quarter had to be estimated. It is proposed in future to pay half-yearly. In the year 1927, in which the change is being made, the Estimate for the contribution towards expenses of the League (Vote 3) contains provision for only three-quarters of a normal provision.

19. The Estimate for the Dominions Office (Vote 4) shows a net increase of 2,8811., which allows for a third Assistant Secretary in the Secretariat and a number of Staff additions to the Oversea Settlement Department consequent on the growth of migration business. Provision has been made for the complete staff of the Empire Marketing Board Secretariat, including the Imperial Economic Committee. Last year the Secretariat consisted of officers whose salaries were borne by lending departments and temporary staff. In future the cost will be recovered. from the Fund and appropriated in aid of the Vote.

20. The Estimate for Dominion Services (Vote 5) shows an increase of 103,8261. Increased provision (150,000l.) appears for ex-gratia Grants to persons recommended for assistance by the Irish Grants Committee who have suffered injury to person or property in what is now the Irish Free State. Apart from ex-gratia Grants, there is a considerable decrease in the amounts required for Irish Services, including the Pensions Appeals Tribunals, which are being reduced to one full-time Tribunal and one part-time Tribunal.

21. The grant-in-aid of the Empire Marketing Fund (Vote 6) has been increased from 500,000l. to 1,000,000l. Services on behalf of the Empire Marketing Board are being undertaken by a number of Government. Departments and following the procedure adopted in the case of Development Fund Grants, provision of the Funds necessary for such services is

(23530)

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made in the Vote for the Department which will undertake the services and an equal amount will be paid from the Empire Marketing Fund and appropriated in aid of the Department's Vote. The arrangements as regards the staff of the Board follow the same principle and are explained in paragraph 19.

22. The Estimate for Oversea Settlement (Vote 7) shows an increase of 463,500l. as compared with the Estimates, original and supplementary, for 1926, owing to the continued development of migration to the Dominions and Colonies.

23. The largest increase (385,000l.) is on account of Land Settlement Schemes, and is principally accounted for by requirements to meet liabilities in connection with the Australian Development Scheme, and the Canadian Families Settlement Scheme. Also, provision is made for new schemes arising from the conclusions of the recent Imperial Conference.

24. An increase of 73,000l. appears under the Subhead for Assisted Passages. This is due to continued growth in the number of assisted migrants expansion is specially anticipated in the case of Canada.

25. A further increase is shown under the Subhead for Training, this being largely due to the conclusion of agreements with several Voluntary Societies for testing and training men and boys in the United Kingdom for agricultural life in the Dominions.

26. The Estimate for the Colonial Office (Vote 8) shows an increase of 3,6261. due to staff additions consequent on growth of work and to the salary for a new post of Agricultural Adviser. Increased provision is made under Travelling for the cost of special journeys.

27. The Estimate for Colonial Services (Vote 9) shows a decrease of 133,930., mainly due to the diminution or elimination of Grants in aid of local revenues. The position in Northern Rhodesia so improved in 1926 that the Grant of 50,000l. was not issued and no assistance is required in 1927. The Imperial College of Tropical Agriculture, with which is incorporated the former Imperial Department of Agriculture in the West Indies, disappears from the Estimate.

28. The Estimate for Middle Eastern Services (Vote 10) shows a decrease of 1,049,000l., made up of decreases of 1,141,400. for Iraq and 166,600/. for Palestine and an increase of 259,000l. in respect of Arabia.

29. The reductions in Iraq and Palestine are due to the continued decreases in the strength of the British garrisons stationed there (936,500.), the disbandment or transfer to the Iraq Army of certain units of the Iraq Levies (238,5001.), a decrease in the sum provided for compensation to British officials in Iraq on termination of their appointments (5,000l.), and a reduction in the British Government's contribution towards the cost of the Trans-Jordan Frontier Force and the Trans-Jordan Civil deficit. (93,000l.).

30. The net increase of 259,000l. for Arabia is due to the transfer to the Colonial Office of the responsibility for the political and military administration of Aden. Military expenditure will be reimbursed to Army and Air Votes and the contribution from the Government of India. is shown as an Appropriation-in-Aid.

31. The contribution towards the cost of the India Office (Vote 11) includes a sum of 28,000l. formerly provided in Army Votes. A transfer has been made in the 1926 columns for purposes of comparison. The normal grant-in-aid was fixed for each of the four years commencing with 1926 at 119,000l., subject to abatement of 40,000l. in respect of the amount by which Indian Revenues benefitted through arrangements made following the recommendations in the Final Report dated the 6th April, 1900, of the Royal Commission on Indian Expenditure. The 28,000l. now in question is a sum included in this 40,000l. formerly paid from Army Funds which ceases this year to be so paid under the altered arrangements as regards Aden explained in the preceding paragraph.

32. The amount provided for the Imperial War Graves Commission (Vote 12) includes a third instalment of 50,000l. towards the Endowment Fund which is being set up to provide in perpetuity for the maintenance of the Graves, &c., under the Commission's charge.

33. The reduction of the Estimate by 461,8887. is due to the fact that expenditure is anticipated to be less than in 1926 by 267,000l., while there is available an unexpended balance of the Grant-in-Aid voted for 1926, estimated at 245,000l. The share of the Imperial Government in the expenses of the Commission is 81.52 per cent.

34. The Estimate for the contribution towards the expenses of the West Indian Islands Cable (Vote 13) remains at 101. The altered arrangements made in 1925 for the payment of the United Kingdom's contribution in arrear obviated any net provision in Estimates until the contributions in hand had been worked off against subsequent deficits. The United Kingdom share of the deficit in 1926 is expected to be slightly less than the outstanding balance to the United Kingdom's credit and a Vote is, therefore, only required to authorise the application of the contributions receivable from the other participating Governments in respect of that deficit.

35. The Estimate for the Home Office (Vote 1) shows an increase of 13,6711. of which 13,000l. is due to an increase in the contribution to the expenses of Probation Committees. The Estimate for 1927 includes

provision for the payment of a balance of 10 per cent. in respect of 1926, while the Committees estimate that their expenses will be higher in 1927 than in 1926.

36. The Estimate for Police, England and Wales (Vote 3) shows an increase of 181,1057., of which 150,000l. is accounted for by increments in the pay and automatic growth in the pensions of the police. The remainder is due to increase in the strength of police forces.

37. The Estimate for Prisons, England and Wales (Vote 4) shows an increase of 25,9251. Of this, 6,500/. can be ascribed to the increased number of prisoners estimated for, and the remainder is due to an all-round increase in the cost of victualling, clothing, light, &c.

38. The Estimate for the Land Registry (Vote 7) shows an increase of 28,7017., due to the increased provision for staff necessitated by additional work arising out of the recent Law of Property Acts. The cost of the Department is fully covered by fee receipts.

39. The Estimate for the Supreme Court of Judicature (Vote 9) shows a decrease of 25,7351., of which 19,000l. is due to a reduction in the staff of the Pensions Appeals Tribunals. Receipts from fees, &c., appropriated in aid of the Vote show an increase of 8,3907.

40. The decrease in the Estimate for Law Charges, England (Vote 10) is mainly due to reduced provision for criminal proceedings and legal proceedings taken on behalf of Government Departments.

41. The decrease in the Estimate for Miscellaneous Legal Expenses (Vote 11) is due to the reduced provision for the War Compensation Court.

42. A reduction in the staff of Pensions Appeals Tribunals causes decreases in the Estimate for Law Charges and Courts of Law, Scotland (Vote 16), and the Estimate for Northern Ireland Services (Vote 18).

43. The increase of 52,8941., which appears on the Estimate for the Land Purchase Commission, Northern Ireland (Vote 20), is due to the passing of the Northern Ireland Land Act, 1925, which provides for the completion of land purchase in Northern Ireland. Increases are provided under Subheads A (Salaries), C (Incidentals), H (Land Purchase Annuities) and I (Contribution to Landlords on Remission of Rent) for the purpose of carrying on the additional work involved under the operation of the Act. Against the increases, there are reductions in the Estimate for the cost of Travelling Expenses, Legal Expenses, Land Purchase Aid Fund, Excess Stock Charges and Improvement of Estates (Subheads B, D, E, F and G respectively).

44. There has been a reduction in the amount of the Appropriations in Aid. Further particulars of these, including the amount recoverable from the Governments of Northern Ireland and the Irish Free State are given in the details of the Estimate.

45. The Estimate for the Board of Education (Vote 1) shows a net increase of 7,0201. over the original net Estimate for 1926, and of 14,551l., after allowing for adjustment owing to the transfer of certain services from and to this Vote. The gross increases amount to 441,644/., against which are to be set decreases amounting to 418,4401. and an increase in Appropriations in Aid of 8,6531.

46. The decrease of 24,4961. in Administration and Inspection and Examination is due to reductions of staff.

47. Grants to Local Education Authorities for Elementary and Higher Education show a decrease of 394,8081., and an increase of 604,7007. respectively. The decrease for Elementary Education is due partly to a fall in average attendance, a rise in the value of the 7d. rate and a slight fall in average rates of teachers' salaries under the Burnham Award, and partly to a decrease in the balances of grants outstanding from earlier years. For Higher Education provision for balances is made for the first time because, until 1926, the full grant was payable within the year. The increase in instalments of grant for the year is due, as to 250,000/., to a change in the system of paying grants to certain non-provided Schools (there is a corresponding decrease under Subhead D.2), and partly to an unexpected growth in the expenditure of Local Education Authorities.

48. The increase of 75,800l. for Pensions to Teachers is less than the normal increase owing to the fact that the Estimate for 1926 has been found to be excessive.

49. In the case of Scotland (Vote 10), a net increase of 152,6877. is shown. The contribution to the Education (Scotland) Fund (Subhead C) is calculated in accordance with the Education (Scotland) Act, 1918. The Grant depends on the corresponding provision for England and Wales with adjustments for the difference between the estimates and actual expenditure of the Board of Education in the last completed year (in this case 1925). The provision for Superannuation of Teachers is similarly calculated. The adjustment in respect of the previous completed year explains the fact that the Scottish provision does not necessarily follow the English provision in respect of increase or decrease.

50. Of the increase of 3,438/. on the Estimate for the British Museum (Vote 2), 7501. is due to the fact that there are 53 weekly pay days in 1927. The remainder is mainly due to automatic increases of salaries owing to annual increments.