chairmanship of Sir Alexander Muddiman, concluded its labours towards the end of the year, and it is anticipated that its Report will shortly be issued. The questions of the burden of taxation and the general economic condition of India were referred for consideration to a Committee and to the local Governments respectively, but these inquiries were not concluded by the end of 1924. The Opposition sought to provide that contracts for railway and other stores should not be binding unless approved by the Assembly. Demands for the release of certain political prisoners and for the repeal of Bengal Regulation III. of 1818, under which Government have special powers of arrest, were made on February 26 and March 20.

On February 5 Government accepted a motion for an inquiry into the possibility of the expansion and improvement of the Indian Territorial Force and for the removal of racial distinctions in the non-regular forces. The question of Indians in the Dominions and Crown Colonies, particularly in Kenya and South Africa, was raised in the Council of State on March 10, 19, and 20. Government announced its intention of separating the railway finances from general finance.

Other subjects discussed in the first Session of the Legislature related to: Sikh grievances (Feb. 26), the duty on South African coal (Feb. 7), cotton excise (March 20), the Khilafat Delegation (March 25), the new Capital Committee (Feb. 12), the constitution of the Indian Delegation to the League of Nations (March 10), the return of Mr. Horniman (Feb. 19), the representation of Mohammedans in the Legislatures and in Government service (Feb. 19), unemployment (Feb. 18), the Service Provident Funds (Feb. 18), facilities for 3rd class railway passengers (Feb. 12), child welfare (Feb. 20), and obscene publications (March 8.)

The legislation which came up during the Delhi Session was not of great relative significance. The most important Acts passed were the following, viz.: Amendment of the Indian Penal Code, raising the age to 18 for the purpose of the offences described in sections 372 and 373 (selling, etc., minors for the purpose of prostitution, etc.); Amendment of the Indian Tariff Act, to impose duties on articles imported into and exported from India by land; and Amendment of the Indian Passport Act. A Government Bill for the purpose of affording greater protection to persons under 18 years of age and non-official Bills for the Amendment of the Code of Criminal Procedure (to regulate the use of fire-arms in dispersing unlawful assemblies), for the Amendment of the Penal Code to raise the age of consent from 12 to 14, and for the definition of the liability of a Hindu coparcener, etc., were introduced.

The second, or Simla, Session opened on May 17. Although it had been called for the special purpose of dealing with the question of the steel industry, Government permitted discussion on the Report of the Royal ("Lee") Commission on the Superior

Civil Services (June 9), and on the duty on sulphur (June 6). The Steel Protection Bill was agreed to with celerity; obstruction for the moment was suspended. The Act, as passed, provides for the fostering and development of the steel industry in British India, by increasing the import duties leviable on certain iron and steel articles, to 15 and in some instances to 25 per cent., as compared with the prevailing duty of 10 per cent. In addition bounties are to be granted on certain articles connected with the industry.

In the September Session the Government proposal to adopt the recommendations of the Royal Commission on the Superior Civil Services was rejected by the Assembly. The Commission had endeavoured to strike a balance between the claims of the Indian Services, and more particularly, of the European members, for more generous treatment and greater security of tenure. It dealt also with the general and insistent demand of the literate classes for the speedier Indianisation of the Administration. Other matters discussed related to the separation of railway from general finance (Sept. 17), the inquiry into the general conditions of economic life and labour (Sept. 18), and cotton excise (Sept. 22). Various relatively unimportant Bills were introduced and advanced further stages.

On March 18, Sir Basil Blackett introduced the Budget, which he said would balance for the first time for some years. Government were in favour of reducing the salt tax, which had been raised in 1923, and hoped to begin with the remission of provincial contributions to the Central Government; likewise some small tariff changes were contemplated. The final figures for 1922-23 showed revenue at Rs. 1,21,41,29,156 and expenditure at Rs. 1,36,43,45,548, leaving a deficit of Rs. 15,01,76,392. Full effect had been given to the reductions in British troops recommended by the Retrenchment Committee except in the case of one cavalry regiment. The total debt of India, including Treasury Bills, on March 31, 1924, was 9,67 18 crores of rupees as compared with 929 55 crores in the previous year.

When the demands for grants under the different heads of expenditure were laid before the Legislative Assembly, that House rejected the demands for the Customs, Income Tax, Salt, and Opium Departments. These demands were restored by Government, acting in accordance with section 67A(7) of the Government of India Act. Other demands had in the meantime been passed by the Assembly with small reductions. When during the next stage of the Budget procedure, the Finance Bill was presented to the Assembly, consideration was refused without examination of details, in spite of the fact that the majority of the demands for expenditure had actually been accepted by the House. The Finance Bill prescribed the rates at which taxation. shall be levied under several of the most important heads, including the salt duty, postage and income tax, and the legislative sanction of the Finance Act of the preceding year for the

year

collection of taxation under these heads would have expired on March 31, 1924. The Governor-General therefore took action under the special powers conferred on him by section 67 B of the Government of India Act, in order to enable the administration of the country to be carried on and to provide sufficient funds to enable the Government of India's Budget for 1924-25 to be balanced. He recommended to the Assembly the Finance Bill in a modified form, providing for the levy of the salt tax at the former rate of Rs. 1-4a. per maund, for the existing postal rates and rates of income tax, for the continuance for a further of the provision for the credit to the general revenues of the interest on the securities held in the Paper Currency Reserve, and for the imposition of a specific duty on certain materials for match manufacture. This Bill, with the Governor-General's recommendation was presented to the Assembly, but leave to introduce it was refused. It was thereupon laid before the Council of State, with the certificate by the Governor-General that its provisions were essential for the interests of British India and was passed by the Council without amendment. On the basis of this Act it is estimated that the revenue for 1924-25 will be 1,30,09 lakhs of rupees and the expenditure, 1,29,90 lakhs, leaving a surplus of 18,47 lakhs.

In Bengal, where the Swarajists obtained a sweeping success in the 1923 elections, the Governor's invitation to Mr. Das, the Swarajist leader, to form a Ministry, was refused. The Mohammedan leaders tried to organise a bloc in support of Government, and friction between Hindu and Moslem ensued. On March 6, Mr. Mullick, Minister for Local Self-Government, resigned, and the Governor divided his functions between the two Moslem Ministers. A motion for the rejection of the vote for the Ministers' salaries was passed, and, on the application of the Swarajists, Mr. Justice Ghose granted an injunction restraining the President of the Legislative Council from allowing the vote for ministerial salaries to be reintroduced. After the vote, the Governor prorogued the Council, assumed charge of the transferred Departments, and stated that until such time as the Constitution is restored, the Legislative Council would be summoned only when required for the transaction of Government business. The Government of India afterwards amended the Legislative Rules allowing re-submission of rejected votes.

During the year a terrorist movement was found to exist in Bengal, and it was established that there was a widespread conspiracy for violent crime, one incident of which was the murder of Mr. Day, a prominent merchant, on January 13, by a member of the Bhadralog class, inspired by revolutionary political motives. The ordinary law, even when reinforced by Bengal Regulation III. of 1818, being found ineffective to stop or check the movement, the Government of India, at the request of the Bengal Government, and with the approval of the Home Government, issued an Ordinance, giving special powers to deal with the emergency.

In the Central Provinces the Swarajist adopted a policy of obstinate obstruction to the Government. The dyarchical system broke down, and the field of administration entrusted to the Indian Ministers was taken over by the Governor.

Since July, 1923, when the Maharaja of Nabha resigned, the Akali Sikhs under the guidance of the Shrines Committee have tried to create trouble in the Nabha State. Bands of Akali Sikhs have gathered in the Punjab to march over the border, ostensibly to hold religious meetings at the Sikh Shrine at Jaitu, but in reality for political demonstrations. On February 21, a prohibited Jatha (band) of 500 armed Akalis came into collision with the forces of the Nabha State.

Labour troubles broke out in Bombay in January, when 30,000 (later on increased to over 150,000) mill hands came out on a strike, the owners having refused to grant them a month's bonus.

Serious floods occurred in the Madras Presidency and in other parts of India.

It was announced during the year that Government contemplated a considerable extension of the railway system in Madras.

On the North-West frontier affairs were comparatively quiet, and much satisfaction was expressed at the co-operation of the Amir of Afghanistan against the Kohat and Landi Kotal murders (referred to in ANNUAL REGISTER, 1923, p. 266).

The Nizam of Hyderabad formulated a claim for the return of Berar, which has been under the administration of the Government of India for seventy years.

During the year the Government of India appointed a Committee, with the Agha Khan as Chairman, to confer with the Colonial Office on all matters affecting the status and welfare of Indians in the Crown Colonies, including Kenya.

CHAPTER VIII.

THE FAR EAST: CHINA-JAPAN-THE DUTCH EAST INDIES.

CHINA.

THE year under review coincided with the beginning of a Chinese cycle which, as believed by the Celestials, marks the approach of better times. In the first few months things looked decidedly better for China than they had done for some time. The President, Marshal Tsao Kun, though illiterate and a tool of his treasurer, commanded sufficient respect to serve as a symbol of unity in the greater part of the country. His ablest lieutenant, Marshal Wu Pei-fu, succeeded in making his authority acknowledged even by the distant province of Szechuan and the rebellious districts of Hunan. Apart from Manchuria and three other provinces, Chekiang, Kwangtung, and Yunnan, he was accepted by the whole country as its nominal head.

In virtue of the general recognition which it enjoyed owing to the support of Wu Pei-fu, the Central Government was able, in the earlier half of the year, to conclude advantageous agreements with two foreign Powers-Russia and Germany. The recognition of Russia by Great Britain and Italy and the opening of informal conversations between Russia and Japan gave China a new impulse to seek a settlement with Russia, and at the same time the Russian Government saw fit to meet it half-way by agreeing to negotiate a draft settlement in general terms prior to formal recognition. On May 31, an agreement was signed between China and Russia to provide for re-establishment of normal diplomatic and consular relations between the two parties and for the transfer by China of the Legation and Consular buildings formerly belonging to the Tsarist Government, in return for which Russia agreed to renounce her share of the Boxer Indemnity and relinquish her rights of extraterritoriality and consular jurisdiction together with settlements and concessions. The agreement provided that a conference should be held to draw up a treaty "based on principles of equality, reciprocity and justice," and contained also mutual pledges to abstain from hostile propaganda. In a separate document signed on the same date, provisional regulations for the control of the Chinese Eastern Railway (a Russian concern on Chinese territory) were agreed upon. This was the first occasion in her diplomatic history on which China had succeeded in securing an agreement free from unilateral obligations. The proposed conference never met, as Chang Tso-lin, the Manchurian dictator, refused to fulfil the terms relating to the Chinese Eastern Railway. When civil war broke out in October, Karakhan, the Soviet representative, in spite of the agreement, supported Chang Tso-lin against the Central Government.

On June 6 and 7 China exchanged notes with Germany to settle her claim for war reparation to the amount of 200,000,000 dollars (25,000,000l.). China knew that if the list was submitted to an impartial tribunal for scrutiny, she would not be awarded one-hundredth part of the amount. It was agreed with Germany, however, that the list should not be examined at all, and that Germany should pay her reparation to the full amount of Chinese Government Bonds issued in Germany in pre-war days but collected by the German Government from bondholders since the war, a part of these bonds to be detained by the said Government to satisfy claims of German nationals against the Chinese Government contracted before the war or arising from China's war measures. As finally agreed upon, Germany, in addition to 4,000,000 dollars paid in 1921, handed to China 1,400,000l. nominal of the 1908 issue and 950,000l. nominal of the 1910 issue of the Tientsin-Pukow Railway bonds, 381,6407. nominal of the 1911 issue of the Hukuang Railway bonds, and 1,881,000l. in matured coupons and drawn bonds of these