X
of external control which it is necessary to exercise
the Colony's finances whilst it is in receipt of financial
assistance from His Majesty's Government and for the
carrying out of the Colonial Government's responsibility in
respect of any scheme under the Colonial Development and
Welfare Act with which the Municipal Council may become
concerned,
It appears to me that the most satisfactory method
of achieving the former aim is to require that the annual
estimates of the Council should be submitted to the central
Government for approval, as is in fact the requirement in
some other Colonies. The estimates of the Council would
take account of the revenue which the Cound12 might expect
to get from rates and fees and the resultant deficit, after
approval by the central Government, would be met by a grant-
in-aid from central Government funds. In paragraph 3(1) of
my despatch of 3rd July 1947 I said that there would be no
objection to the proceeds of specified taxes being assigned
to the unicipal Council. On further consideration it
appears to me that such assigned taxes might be subject to
considerable variation one way or the other from year to
year and that therefore it would be better, instead of
adopting this course, to supplement the revenues of the
Council accruing from its own rates and fees by a grant-in-
aid from the central Government. There is the alternative or
supplementary course of making grants to the Municipality
for specific purposes, as is done in this country. I shall
be glad of your views on the possibility of adopting this
course. I should wish to be consulted about the amount of
the grant or grants to be made to the Kunicipality before the
annual municipal estimates are approved by the central
Government.
I appreciate