London, Feb. 26.
Much interest has been aroused in an announcement that His Majesty's Government, in a United Kingdom agreement, will forego, in the future, annual payments of direct contribution amounting to £100000 towards ihe naval defence of India, and miscellaneous charges of £15,000 to £20,000 on behalf of vessels of the Royal Navy, on condition that the Government of India maintain a seagoing fleet of not less than six modern escort vessels free to cooperate with the Royal Navy in defence on India, and, in addition, to fulfil their responsibility for the local naval defence of Indian ports.
It is recalled that, in consideration of services performed by the Royal Navy, India has paid a contribution of varying amounts since 1869. Although the amount represents but a small fraction of India's total defence expenditure, it is of considerable importance, in relation to the present annual expenditure of approximately £500,000 on the Royal Indian Navy, and it will be of substantial assistance in modernizing and maintaining in a state of efciency India's fleet of sloops and auxiliary craft,
Text read from the printed page and cleaned; old type leaves the occasional error.