indrade whhadd

Act, 1940, with which the Minicipality may become concerned.

As regards the question of the powers of the

Municipal Council in the matter of taxation, whilst there

is no objection to the Municipality acting as agents of

the Central Government for the collection of specified

taxes, or to the proceeds of specified taxes being assigned

to the Municipality to meet expenditure, nor to the

Municipality being empowered to levy rates and to fix the

fees payable in respect of licences etc. issued by it,

I desire to make it clear, to avoid any possible

misunderstanding, that it would in my view be open to

objection if the Legislature were to transfer to the

Municipality any authority in respect of other taxation.

(J) Municipal loan projects (paragraph 35). I confirm

that any loan projects of the Municipality should be

submitted to and receive the sanction of the Central

Government, and that I would wish them to be submitted to

the as well.

(k)

J

Audit arrangements (paragraph 36). My view is that

the audit of the lunicipality accounts should be carried

out by the Colonial Audit Department.

(1)

Transfer to the Municipality of movable and immovable

property (paragraphs 37 and 38). I should be glad to be

consulted further on the question of the terms on which

property should be transferred or leased to the Municipality

when details of such property are available. In deciding

upon the terms, regard will have to be paid to the

Colony's financial position at the time and to the

question whether any replacements will be necessary for

Central Government purposes.

(m)

Sae (4)

Secondment of staff to the Municipality (paragraph 40).

I agree that this question should be referred to the

Commission proposed in paragraph 33 of Sir Mark Young's

despatch, but it will be necessary to consider very

carefully whether, without prejudice to the interests of

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