§ The army expenditure for this year—that is, independent of the expeditionary forces in the Tochi Valley and the Malakand—was Rx.100,000 less than in the preceding year. It is frequently assumed that our Army has attained undue dimensions, and that the country is taxed unreasonably for gigantic military establishments. We have in India some 75,000 European troops and 140,000 native troops. These in the aggregate stand to the civil population in the proportion of 11 to every 10,000 and the proportion will be lower if we include the population of the native States. In the Russian territory of Asia their army stands in the proportion to the civil population of 137 to 10,000, or 12 times higher than the proportion the Indian Army bears to the civil population. France maintains 894 and Germany 662 soldiers to every 10,000 of the civil population, and in this country we maintain 147 soldiers to the same proportion of the civil population. It is clear, therefore, that, looking at the population and the area of territory in which they have to work, the Army is extremely small. It should be remembered that the only security that India has for the continued preservation of peace and tranquillity is the knowledge that there is one paramount Power possessing sufficient power to suppress all disorderly elements. This Army is not an element of aggression or of menace to others, but it is the guardian of the industry and well-being of the peaceful masses, and protects them from the spoliation and exaction to which, for centuries previous to the advent of our rule in India, they were ever subject. But if our Army is small it is very efficient. It is admitted on all hands that our European regiments in India have attained a very high standard of efficiency, and many of the native regiments are little behind them. We had a specimen of the native forces in the delegation 423 of officers who came over as an escort to the Queen at her Jubilee. ["Hear, hear!"] They met with an enthusiastic reception, which they most heartily appreciated, as was shown by the thanks which, through me as Secretary of State, they returned to the people of England for their kindness and hospitality. In the short period that has elapsed since then the native army has twice been tried—in the Tochi Valley and at the Malakand Kotal, where they were the only troops engaged. On both occasions they showed an admirable spirit and unflinching loyalty. It must be gratifying to the people of this country to know that their reception of these gallant representatives of the Indian Army was in no sense misjudged, and that, even in the short interval since the Jubilee, that army has given fresh proof of its loyalty and heroism. ["Hear, hear!"] It will doubtless be suggested that the recent fighting that has occurred in these two places has proved the unwisdom of the policy of frontier extension. It is no doubt inconvenient that the cost of two expeditionary forces should have to be defrayed in this year of exceptional financial difficulty; but no one expected, when we extended our sphere of influence over these territories, that the tribes would at once abandon their predatory and pugnacious habits. There is only one method by which the tribes along our Indian frontier can be permanently weaned from their old malpractices, and that is to so improve their material condition that they will not risk the advantages they have thus gained for the mere fun of fighting. The opening and making of the road from the Malakand to Chitral has greatly improved the material prosperity of all in the valley, and, although the inhabitants of that district may be subject to sudden outbreaks of fanatical zeal, I am confident that, under the steady pressure of improved circumstances, they will follow the example of the other tribes with whom we have had to deal similarly, and gradually become friendly and well-to-do neighbours.