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118                        Part II.

                             105.  In 1902, tho Haji Ismail (recent owner of tlio Consulato building)
                                                        olTcrcd to sell to Government a garden at
                           External A., March 1003, Nos. 13—14.
                                                        tbc roar of tho Consulate Premises, ovor
                         which a right of way had been granted when the recent salo was effected. Gov­
                         ernment declined to purohaso it.
                             106.  Haji Ismail then proposed to sell it to another person, Major New-
                                                        march raised no objection to this but only
                              External A., July 1903, No, 71.
                                                        rominded him of the right of way granted
                         at the recent sell and warned him to take proper measures to scouro this right
                         when the salo of the garden is effected.
                             107. Pending completion of tho now building the British Council was
                                                        allowed to biro a houso on an annual
                               External A., May 1901, No. 95.
                                                        rental of £7,150 per annum.
                          (e) Proposed construction of a neio Consulate building at Basrah and the liabi­
                                    lity of the Government of India to pay its cost, 1900.
                                                          108. The following letter of the Poreign
                            Eitornal A., May 1000, Nos. 127-139.
                                                        Offico to tho India Office, dated 13lh Nov-
                          ember 1899, shows bow this question aroso :—
                             “ By your letter of the 31st August 1893, the Secretary of State for India in Council sanc-
                          tioned a charge on Indian revenues on account of Her Majesty’s Consulato at Basrah of
                          £ 1,400 a yoar, which was to include all charges effective and non-effective, connected with the
                          Consulate.
                             I am directed to transmit to you copy of a despatch from Mr. Wratislaw, tho present
                           Consul Wratiiiaw's No. 5 (Consular), duted 2Sth Consul, relative to the Consular promisee at that
                          September lb9j.               place.
                             Mr. Wratislaw states that one of his predecessors, Major Fagan, reported to the Indian
                          Government, same time before the transfer of the post to the Imperial Government, that the
                          Consular house was in a dangerous condition. Mr. Veevers, the official, sent by the Indian
                          Government in consequence to inspect the house, furnished a report, copy of which is inclosed
                          by Mr. IVratislaw, showing that tho buildings were at that time in a stato of extreme
                          dilapidation and subsequently prepared plans and estimates for a new Consulate which the
                          Indian authorities refused to carry out on the ground that tho post had meanwhile been taken
                          over by tho Home Government.
                             There is nothing in the carrcspondcncc relative to the transfer of the post to show that
                          the Consular premises would require immediate re-building; and Lord Salisbury was unaware
                          of the fact when consenting to the term of the transfer, iJis Lordship cousidcrs that an under­
                          taking of such magnitude cannot he held to come under tho heading "Contingent expendi­
                          ture’1 shown in the statement which accompanied the despatch from the Government of India
                          of May 5th, 1893, and on which the negotiations were founded. The Indian authorities
                          might fairly bo expected to transfer the house in a habitable condition, and Lord Salisbury
                          trusts that the Government of India will not repudiate all liability in connection with the
                          matter, on the ground that they arc now making a contribution bases on average expenditure.
                             Tho cost, according to the cstimato drawn up by Mr. Veevers, as modified by the Council
                          amounts to three thousand pounds. Part of this could, if absolutely necessary, he raised by
                                    £3 000              selling a portion of the Consular site, although
                                      ’                 Mr. Wratislsaw deprecates this arrangement, and
                          Lord Salisbury agrees that it would be most undesirable,
                             I am to request that you will move Lord George Hamilton to represent the above con­
                          siderations to the Government oF India and urge upon them tho propriety of reconsidering
                          the decision conveyed to Her Majesty's Council at Busrah, of carrying out the plans prepared
                          by their Agent, and of defraying the cost thereof from Indian funds.11
                             # 109. Lord Gcorgo Hamilton referred the matter to the Government of
                          India, who replied in their despatch No. 53, dated 3rd May 1900.
   :
                             “Wo acknowledge the liability of the Government of India to meet the cost of rebuilding
                          the Consulate, which is represented to have been in a dangerous condition at the time of the
                          transfer of the Basrah Consulate to the control of Her Majesty’s Government, and we are
                          prepared to contribute a sum not exceeding £ 3,000 from Indian revenues for the work.
                          Your Lordship is aware that the calculation,on which our present contribution towards tho cost
                          of tho Basrah Consulate is based includes a sum of Us. 5,759-3-0. representing tlie a%^cra^c
                          expenditure incurred on account »f the Agency during the five years 1x92-93 to 1896-J/
                          under the head of “Contingent Expenditure.11 Wo notice that, when the Consulate lias been
                          built, Lord Salisbury is prepared to admit the Consul's liability to meet the cost of repairs
                          until the proposed revision of the whole arrangement after live years. In these circumstances,
                          and considering that a luvgc portion of tho sum previously disbursed under the hc-iu
                          Contingent " Expenditure ’’ represented expenditure on reclamation and repairs to the on
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