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 debt, of interest on the capital expenditure on canals; of Indian marine expenditure; and of India's contribution to the navy. I have taken these figures from a recent speech by Sir Hugh Barnes, the late Lieutenant-Governor. He added that it was calculated that, deducting these payments and the cost of the wars waged for Burma, Burma had never yet fully paid its way, and that the present year was the first in which an equilibrium would be arrived at. Henceforth, no doubt, Burma will more than pay her way, and it seems to me that Burma has not done badly, in view of the fact that she has paid all her own charges to the Imperial exchequer, including the cost of three expensive wars, and that in future she will provide a surplus to the Imperial treasury.

It must not, however, be forgotten that Burma is still in great need of development. She needs more railways, better communications, and a more liberal expenditure on public work in general. Capital expended on the development of the province will, judging by past experience, return a liberal profit. The revenue of Burma is constantly increasing. Last year there was an increase of 78,42,610 rupees in the total revenues of the province, and, owing to the system of assessment, the land revenue increases automatically with the increase of cultivation.

Financially, then, Burma is a source of strength to the British Empire. The conquest of Burma was, as I have said, not undertaken voluntarily, but of necessity. Lower Burma was conquered because we could not brook the presence of an aggressive and hostile Power on the borders of India, and Upper Burma was conquered primarily because we could not allow that province to be acquired by a foreign Power.

Great Britain has a large trade with Burma. The value of foreign imports by sea was 847 lakhs of rupees in 1908-1904. Foreign countries trade with Burma on equal terms with ourselves; 58·67 per cent. of the imports, however, came from the United Kingdom.