汽
30019
No. 45.
(INTER-COLONIAL COUNCIL: TRANSVAAL AND ORANGE RIVER Colony.)
LAW OFFICERS to COLONIAL OFFICE.
[Power of the Inter-Colonial Council to borrow money from the Transvaal and Orange River Colony Governments.]
MY LORD,
Royal Courts of Justice,
August 14, 1906. WE were honoured by Your Lordship's commands, signified to us by Mr. Graham in his letter of the 18th July last, stating that he was directed by Your Lordship to transmit for our consideration, a despatch from the High Commissioner for South Africa on the question whether under the existing Orders in Council the Inter-Colonial Council had power to borrow money from the Governments of the Transvaal and Orange River Colony.
That it was admitted that under the Orders in Council the Council had no power to borrow in the open market, and that it had been deemed inadvisable to give it such a power.
That the funds placed at its disposal were, however, found inadequate for various schemes of railway construction which were held to be desirable, and that as it has been a fixed principle that the construction and control of railways in the two new Colonies should be the business of the Council and not that of the two Colonial Governments, a solution of the difficulty was sought by means of loans to the Council by the two Governments. That instances of such loans were mentioned in Lord Selborne's despatch, and that in the same category must be placed the loan of £380,000 by the Transvaal Government to provide quarters, &c., for the South African Constabulary, a force controlled by the Inter-Colonial Council,
That in the telegram of which a copy was enclosed, Lord Selborne reported the terms of a Resolution of the Inter-Colonial Council respecting loans from the two Governments, and asked that an Order in Council authorising such loans might be issued. That it was, however, considered by Your Lordship's legal advisers that no new Order in Council was required, and that in view of certain provisions in the existing Orders in Council specified in the enclosed extract from a telegram to the High Commissioner, sufficient authority for the loans would be provided by Ordinances of the two Colonial Legislative Councils.
That the local Law Officers did not concur in this view, but were of opinion that a fresh Order in Council was required.
That Your Lordship thought it desirable, if possible, to avoid further legisla- tion by Order in Council, but that in view of this opinion he would be glad if we would take the papers into our consideration and report:
(a) Whether a new Order in Council was required to enable the Inter-Colonial Council to borrow from the two Colonial Governments or from the Governments of Cape Colony and Natal, or whether the existing Orders in Council combined with Colonial Ordinances or acts would be sufficient for the purpose? and
(b) If an Order in Council was required whether such an Order could validate loans already made as well as loans thereafter to be made?
(c) Whether Ordinances of the Transvaal and Orange River Colony would not
be sufficient to validate loans already made and future loans, and whether such Ordinances could not provide for the payment of interest by the Inter-Colonial Council and for all other matters necessary and usual in the raising of loans by a body created by instruments having the effect of statute law?
We have taken the matter into our consideration, and in obedience to your commands, have the honour to
Report-
That (a) we do not think that the existing Orders in Council combined with Colonial Odinances would be sufficient to enable the Inter-Colonial Council to borrow from any of the Governments mentioned. We think that the provisions in reference to revenue and expenditure, the submission of estimates, and the provision
23 Wt 1649 10,00 D&S 6 25696
PUBLIC RECORD OFFICE
C.O.885
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