DEFENCE OF INDIA
VAST REORGANISATION AID WITH FINANCE GRANT BY BRITAIN RISE IN TAXATION (Klee. Tel. Copyright—United Press Assn.) (Reed. March 1, 2.10 p.m.) LONDON, Feb. 29. A vast reorganisation of the Indian Army is envisaged in the AngloIndian agreement implementing the Chatfield committee’s recommendations. The British Government originally agreed to grant £34,000,000 over live years, and it has now undertaken to bear all the Indian defence expenditure, except firstly the normal cost of India’s pre-war forces and secondly the special wartime measures in Indian interests and also the contribution towards the extra cost of troops employed outside of India. The modernisation of the army will proceed without delay. A message from New Delhi states that the Minister of Finance, Sir Abraham Raisman, in presenting the £09,000,000 Indian Budget, explained that the defence expenditure had increased by £6,292,000 to £40,000,000. He announced a 50 per cent increase in sugar and excise duties and a 20 per cent increase in the petrol tax. He declared that India was enjoying a tide of war prosperity, of which the primary cause was the foreign demand for India's goods.
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Gisborne Herald, Volume LXVII, Issue 20186, 2 March 1940, Page 7
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185DEFENCE OF INDIA Gisborne Herald, Volume LXVII, Issue 20186, 2 March 1940, Page 7
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