29. The Loans Council should be composed of one representative of the federal Government and one representative of each of the territorial Govern- ments. This admittedly is open to the objection that the votes might be even when a difference of opinion occurred. On the other hand, it would not appear justifiable to give the federal Goverment and one territorial Government power to override the other two territorial Governments, as would happen if the federal Government had two representatives on the Council. There would be a strong inducement on the Council to reach decisions in a practical matter of this kind of such importance to the develop- ment of the territories and where there was a genuine division of opinion it might be as well for time to be allowed for further discussions at lower levels.
30. In Australia after policy decisions have been taken by the Loans Council all loans are raised by the Commonwealth Government acting, in the case of State loans, on behalf of the State Governments. In Central Africa either the same arrangement could be adopted, in which case the federal Government would be able to borrow on the security of its own revenues and those of the territories, or the federal and territorial Govern- ments could be responsible for raising their own loans. Provided that the Loans Council is given power under the constitution, as suggested above, to settle the size of the loan programme and to allocate priorities, it does not seem to be a very material matter which authority actually raises the loan.
ANNEX V
(Paras. 64 and 87 of Report)
LIST OF SUBJECTS FOR THE FEDERAL GOVERNMENT
The Conference recommends that the following subjects should become the responsibility of the federal Government :-
External Affairs.
Defence.
Federal Income Tax.
Federal borrowing.
Immigration and Aliens.
Customs.
External Trade (including import and export control, export promotion
and trade treaty negotiations).
Exchange Control.
Certain inter-territorial trade matters (see paragraph 15 of Annex IV). Census and Statistics.
Currency.
Companies.
Insurance.
Banks and Land Bank.
Bills of exchange and promissory notes.
Bankruptcy and insolvency.
Copyright, patents, trade marks and designs.
Economic planning and development, including general industrial
development (see paragraph 25 of Annex IV).
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Medium- and long-term research. Major water development.
Electricity supply and distribution. Civil aviation.
Meteorological services. Railways.
Trunk roads.
Posts and Telecommunications.
Broadcasting, Films and Tourism.
European education, primary and secondary.
Higher education.
Certain specialist health services, to be agreed.
305