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is 8；650 pounds for tobacco and 8；200 pounds for spirits； and it is
expected that the actual realisations will fully cover the estimate。
Revenue from Salt。
A considerable revenue was derived from the Government monopoly of the
salt lakes in the neighbourhood of Larnaca and Limasol。 The salt was
sold for local consumption and for exportation to the coast of Syria；
but an injudicious increase to the selling price； with short weights and
increased cost of shipment； diverted the supply of the Syrian demand
from Cyprus to the salt lakes of Tunis； and gradually reduced the
revenue from this source。 Owing to the excessive rains of last year； and
the influx of more fresh water into the lakes than could be evaporated
by the sun's rays during the summer； the lakes are at present
unproductive。 But in the earlier months of the current year； under
Turkish administration； the sum of 1；756；840 piastres was recovered and
credited in the Treasury on account of previous salt dues； and that
amount is accordingly entered on the estimate with its English
equivalent of 15；145 pounds。 No other receipts are expected in the
current year； and the revenue from salt has practically ceased。 A
considerable outlay will be required to repair and secure the salt lakes
against the irruption of the drainage of the surrounding country。
The past revenue from salt should be excluded from the computation of
the payment to be made to the Porte from the surplus revenues of Cyprus；
under Article III of the Convention of 4th June； 1878。
To sum up。 Having regard to the revenue arrangements concluded before
arrival of the British in Cyprus； to the realisations in the first four
months of the current year under Turkish administration； and to the
altered conditions under which the finance of the remainder of the year
has to be administered； I am of opinion that the revenue may be safely
estimated at 170；000 pounds； as below：
Pounds
Tithes on land 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 72；000
Tax on property； professions； and trades 。 。 。 。 。 。 。 。 22；000
Tax on sheep 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 11；000
Tax for exemption from military service。 。 。 。 。 。 。 。 。 9；000
Customs duties 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 13；400
Excise on tobacco and spirits 。 。 。 。 。 。 。 。 。 。 。 。 。 16；850
Salt monopoly 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 15；145
Miscellaneous 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 10；605
Total 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 170；000
In future years even though the revenue from the salt monopoly be
entirely lost； we may confidently hope for such an expansion of the
revenue from land*； （*footnote： The island of Cyprus is 140 miles bang
from east to West； with an average breadth of 30 miles。 This gives an
area of 4；200 square miles； or 2；688；000 acres。 Assuming even 1；500；000
acres to be culturable； with an average rental of 2 shillings an acre；
the should have a revenue from this source alone of 150；000 pounds a
year。） from houses； from customs and excise duties； as will ensure a
total income of more than 200；000 pounds a year。
Expenditure of Cyprus。
The estimate of expenditure is based upon the actual cost of the Turkish
and native establishments now maintained； and the cost of the new
agencies created by the change of administration。 The account of
expenditure rendered by the Ottoman Government for the past five years
gives an annual average of about 24；000 pounds a year。 Deducting from
this rate the pay of officials and subordinate establishments no longer
retained； also pensions and charitable allowances； and the cost for six
months of the old Zaphtieh or police force （the corresponding charge for
the reformed police force being added to the estimated cost of British
establishments）； the balance of 1；972；000 piastres； or 17；000 pounds；
may be accepted as a fair estimate of the charges for native
establishments in the island during the current official year。 The
charges for British establishments are estimated at 35；000 pounds； and
they include expenses； incidental to the occupation of a new country；
that are not likely to recur。 It will be possible； in the future； to
reduce the scale of charges for British and native establishments； as
further experience is gained； and the entire machinery of the executive
administration is brought under effective control。
The estimated expenditure for Native and British establishments may be
broadly divided under the following heads：
Central Administration…
Including pay of the Turkish Governor for part
of the year； and of the British High
Commissioner； Financial and Judicial
Commissioners； and High Court for remainder
of the year 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 12；400
District Administration
Including British Commissioners of District；
Native and British Establishments 。 。 。 。 。 。 。 13；500
Military Police 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 16；500
Customs and Excise Establishment 。 。 。 。 。 。 。 5；000
Prisons 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 3；000
Miscellaneous 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 。 1；600
52；000
The expenditure of the current year being estimated at 52；000 Pounds；
and the revenue at 170；000 Pounds； the resulting surplus will be 118；000
pounds。 An examination of the accounts of Cyprus； for the five years
preceding the British occupation； enables me to affirm that the average
surplus of revenue over expenditure in that period was less than 100；000
Pounds per annum。 The future yearly contribution to the Ottoman
Government from the surplus revenues of Cyprus； under the Convention of
the 4th June； 1878； will not； therefore； exceed； and may fall short of；
the sum of 100；000 Pounds。 Nearly one half of this claim for the current
year was taken by the Turks from surplus revenue before our arrival。 We
shall easily make up the balance from the revenue now in course of
collection。 And； under ordinary conditions； the current revenue will not
only cover the annual payment to the Porte and the expenses of
administration； but also provide a fair outlay for roads and sanitary
improvements。
（Signed）
GEO。 W。 KELLNER；
Financial Commissioner of Cyprus。
NICOSIA； CYPRUS； September 25； 1878。
ESTIMATE OF REVENUE AND EXPENDITURE FOR THE YEAR
1878…79
…
｜No｜ Revenue ｜ Amount｜No｜ Expenditure ｜Amount ｜
…
｜ ｜ ｜ _L_ ｜ ｜ ｜ _L_ ｜
｜ 1｜ Dimes or tithes on pro…｜ ｜1 ｜Pay of the Turkish Go…｜ ｜
｜ ｜ duce of land 。 。 。 。 ｜ 72；000｜ ｜vernor of Cyprus for ｜ ｜
｜ ｜ ｜ ｜ ｜part of the year； and ｜ ｜
｜ ｜ ｜ ｜ ｜of the British High ｜ ｜
｜ ｜ ｜ ｜ ｜Commisioner for ｜ ｜
｜ ｜ ｜