Part of the debate – in the House of Commons am ar 6 Rhagfyr 1926.
The Straits Settlements Opium Revenue Replacement Fund was set up by the Straits Settlements Government with my approval with a view to ensuring that the finances of the Colony should be placed on such a basis that they will not be disorganised by the shrinkage in the revenue derived from opium which is bound to occur when circumstances (at present outside the control of the Colonial Government) render it possible to give full effect to the obligations undertaken in the Hague Opium Convention, 1912, and the Protocol to the Geneva Opium Agreement of 1925. The Straits Settlements Government was also influenced by the desire of His Majsty's Government that it should be made clear to the world that the Colonial Government was not being deterred by financial considerations from taking such steps as were possible to give effect to its' international obligations. The scheme for the creation of the fund was drawn up by a committee of unofficial members of the Legislative Council presided over by the Colonial Treasurer, and their recommendations, both as to the lump sum with which the fund was inaugurated and as to the annual contributions' to be made to the fund were adopted by the Straits Settlements Government. These recommendations were based on a full review of the Colony's financial commitments and of the prospects of increasing taxation to make good the deficiency which may be expected to occur.
I am aware that there is much opposition in the Colony to the annual allocation to the fund of 10 per cent. of the revenue of the Colony. I have also received representations from the Association of British Malaya in this country. I am, however, happy to be in a position to assure my hon. Friend that on none of the occasions when this matter has been before the Legislative Council of the Colony has use been made of the Official Vote in the manner suggested.