446
41.14
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WANNAC.O.882/12
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PUBLIC RECORD OFFICE, LONDON
is
114
5. As regards the Ordinance to amend the Income Tax Ordinance, I was satisfied that the proposal to impose income tax on the interest payable on existing loans charged on the public revenue of Ceylon would have been highly prejudicial to the credit of the Island and would have seriously affected the terms on which any future loans could have been raised, and in these circumstances the certification of the amending Ordinance had my entire approval.
C. 93121/82 [No. 1].
(Secret.)
No. 48.
I have, &c.,
P. CUNLIFFE-LISTER
THE SECRETARY OF STATE to THE GOVERNOR.
Downing Street, 24th August, 1932. SIR,
I HAVE the honour to inform you that in connexion with the possibility of a political crisis arising in Ceylon as a result of the failure to balance the Budget, I have had under my consideration the question of the adequacy of the powers possessed by the Governor to carry on the administration in the event of non-co-operation by Ministers and the State Council.
2. So long as Ministers remain in office and the State Council meets, adequate provision appears to be made by Article 22 of the State Council Order in Council. If, however, Ministers should resign their offices and the State Council decline to meet, certain difficulties appear likely to arise.
3. Provision for the administration of the Departments of Government is made by Article 49 of the Order in Council, under which it would be open to the Governor to assume control of any Government Department and issue such orders to that Depart- ment as he may see fit. I am advised that persistent refusal to co-operate by the Council might well amount to a breakdown of the Constitution, which in turn would constitute a grave cause" within the meaning of Article 49. Provided that the Appropriation Bill has been passed and no further financial provision were urgently required, this Article would seem to give the Governor adequate powers for the time being, since the Customs and other Revenue Ordinances would remain in operation and the Treasury would be in possession of adequate funds.
4. If, however, the Appropriation Bill had not been passed, there is the question whether these funds could be made available. The provisions of Article 66 would not then be operative, and it would be necessary at some stage to pass an Appropriation Bill by the use of the Governor's reserve powers under Article 22. In this connexion the question of the adequacy of the powers in regard to legislation given by Article 22 must be considered.
5. I am advised that Article 22 over-rides the provisions of Article 25, which requires that no business except that of adjournment shall be transacted unless there shall be present at least twenty members, exclusive of the Officers of State, in addition to the Speaker or other presiding member. There is, however, a further difficulty. Supposing the Council adjourns and remains adjourned, I am advised that action cannot be taken under Article 22 because it is not possible either to propose any Bill, &c., to the Council if it is not sitting, nor does it seem possible to declare that any Bill shall have effect if the Council is not sitting, because the declaration has to be made by the Governor to the Speaker, and presumably to the Speaker when sitting in Council. "such Bill, and "such Moreover, Sub-section (b) of Article 22 (1) refers to any Bill "must mean a Bill proposed to the Council under Article 22. It is true that under Article 17 (2), the Governor may at any time summon a meeting of the Council by proclamation, although it is adjourned, but I am not clear as to the action which it would be possible to take in the event of the Council refusing to meet when so sum- moned. In order to meet the possibility of a deadlock arising, it might become necessary to amend the Order in Council by the insertion of a provision giving the Governor power in specified circumstances to enact legislation by Governor's Ordinance or Proclamation. 6. I shall be glad if you will consider the matter, and let me know your views in ine course.
I have, &c.,
(for the Secretary of State),
R. W. HAMILTON.
14274/33 [No. 2].
(Secret.)
115
No. 49.
THE SECRETARY OF STATE to THE GOVERNOR.
SIR,
Downing Street, 30th June, 1933. I HAVE the honour to acknowledge the receipt of your Secret despatch of the 22nd February, on the question of the adequacy of the powers possessed by the Governor of Ceylon to carry on the administration in the event of non-co-operation by Ministers and the State Council.
2. I have fully considered your despatch and the draft Instruments prepared by the Attorney-General. I think, however, that all that is required in the first instance is to make provision for any temporary difficulty which might be produced by the adoption of a policy of non-co-operation by Ministers, Executive Committees, or State Council. Certain amendments of the existing Constitution may well prove to be necessary in the future, but I think it clearly undesirable to attempt any complete revision except after fuller experience and careful examination of the working of the existing Constitution. In the event of the initiation of a policy of non-co-operation I should not propose to take further powers than are necessary to deal with the actual emergency. While retaining the existing Constitution in operation, I should propose only so to amend it as to prevent a breakdown resulting from the passive or obstructive tactics of any parties to the Constitution. On this principle I should not be disposed to accept the drafts prepared by the Attorney-General, which purport to revoke the existing instruments and to provide a complete alternative system of Government.
3. On the question of procedure it would appear sufficient that drafts of the necessary Orders in Council should be prepared and kept on record, I should only propose to present these drafts to His Majesty in Council if and when the contemplated emergency should arise. No serious delay is likely to be involved in this procedure, since I should be prepared, if necessary, to ask for a special meeting of the Council at which the necessary Orders in Council could be passed.
4. As to the scope of the Orders, provision has to be made for both legislative and executive functions. 1 propose to deal separately with these two matters, since it is not clear that a policy of non-co-operation would necessarily involve a deadlock in both fields.
5. As regards the legislative functions, the difficulty was explained in the fifth paragraph of my Secret despatch of the 24th August last.† In order to meet any difficulty I have caused a draft Order in Council to be prepared (Enclosure A to this despatch) to amplify the powers given to the Governor by Article 22 of the State Council Order in Council, in the event of the Council failing to meet or to proceed to business. Subject to your observations I propose to keep this draft in readiness for presentation to His Majesty in Council in the event of a situation arising in which your powers under Article 22 of the existing Order in Council might be insufficient.
I con-
6. Different considerations arise in regard to the executive functions. sider that responsibility must rest with the Governor in the last resort to carry on the administration, and this responsibility would exist notwithstanding any failure of Ministers or Executive Committees to co-operate or to perform the functions assigned to them. In this connexion I would invite attention to the opinions I expressed in paragraphs 6 and 7 of my Confidential despatch of the 14th of May, 1932.‡
cause
7. In paragraph 3 of my Secret despatch of the 24th of August last I informed you that I was advised that persistent refusal to co-operate by Council might well amount to a breakdown of the Constitution, which in turn would constitute " grave " within the meaning of Article 49 of the Order in Council. I do not, however, fail to appreciate the considerations urged by you against the use of the powers given by this Article save in emergencies of the nature for which the Article was primarily intended to provide. I assume that in the event of the failure or refusal of Ministers, Executive Committees, or State Council to perform the part assigned to them you would give such directions to the Departments as you saw fit. The ordinary routine work of the Departments would continue under the Heads of Depart- ments who would, no doubt, tacitly conform to any directions given by the Governor. In the event of actual emergency arising, such as an outbreak of disorder, Heads of Departments would, no doubt, act on their own responsibility on the assurance that
* 14274/33 [No. 1]: not printed.
† No. 48.
‡ No. 46.