3.
before the Municipality embarks on a new field'
of taxation not allotted to it in the first
instance. I should find it difficult to agree
that without the assent of the Legislature the
Municipality could not increase the rates of
existing taxation within its allotted field
as this would be in conflict with the fundamental
principal of genuine financial responsibility.
As regards the question raised in paragraph 36 of
your despatch I consider that commercial auditors would be
preferable as marking the independence of the Council
from the Government but agree that the appointment of
the auditors should be subject to the approval of the
Governor.
LL. As regards paragraph 41 of your despatch I am
inclined to think that it would be best to start the
Council with the services of a seconded Government
officer as Town Clerk but that, soon after its inception,
the Council should be moved to ask for an experienced
Town Clerk from this country. If the request for a Town
Clerk from this country were made at the instance of the
Council he might be more likely to enjoy their good will.
5. I also agree with your proposals for decreasing
the number of official members of the Legislative Council
to 7 and for providing for direct nomination of four of
N.P. 6. the eight unofficial members. I propose to reply to your
despatch No.145 in detail in an open telegram or despatch
when the points raised in paragraph 2 above have been
settled.
1
7, I will telegraph separately on the question raised
in paragraph 42 of your despatch and also on the suggestion
in paragraph 33 that such matters as the precise extent of
the transfer of responsibilities from the Government to
the Municipal Council and the exact degree of the Council's
authority in financial matters shall be the subject of
(See Mr.Caine's
minute of 16.12.46)
(See Sir T. Lloyd's minute of 12.12.46)
detailed
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