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it would still be, a saving of expenses to the Municipality if the rates
were paid into the Colonial Treasury as heretofore (and credited to the
Municipal Fund) and this would also be a convenience to the members of
the public who are accustomed to paying both Rates and Crown Rents at the
same place. The cost of the existing Treasury is relatively small in
proportion to the revenue handled and it might well be that some permanent
staff-saving arrangement could be made for the joint user by the Central
Government and the Municipality of the same machinery for collection and
disbursement.
35. I consider that any loan projects of the Municipality should be
submitted to and receive the sanction of the Central Government and you
will doubtless require that any such project should also be submitted to
you.
36. I shall be glad if you will decide whether the Municipal
accounts should be subject to audit by the Colonial Audit Department,
or whether professional audit should be allowed. In the latter event
I consider that the appointment of the auditors should be subject to the
approval of the Governor.
37. It will be necessary to place under the control of the Council
the movable and immovable property requisite for the effective conduct
of Municipal affairs. As regards movable property, such as vehicles,
stores, etc., in the majority of cases there would be an out and out
transfer by way of gift to the Municipality. The land and buildings
which would be required by the Municipality belong to the Crown and I
assume that it would be the wish of His Majesty's Government that these
should be leased to the Municipality at a nominal rental for the period
of 75 years renewable in the case of the Island and the ceded portion of
the Kowloon Peninsula and on the usual condition as to the duration of
the term for that part of the administrative area of the Municipality
(i.e.,New Kowloon) which would lie within the boundaries of the New
Territories. I consider that it would be desirable for the terms of
transfer to contain a provision that the Municipality should not sell or otherwise dispose of any land or buildings transferred for Municipal