CO537-2188 — Page 190

here. We also agreed in the light of our discussion

to drop the idea of the omissions to paragraphs 2,

9 and 115 of your despatch which we had suggested in'...? paragraph 8(1) of our savingram No.32 of the 29th April.

In regard to the question whether the process

4.

of handing over of functions to the Municipal Council

should be described as one of delegation rather than of

transfer, which is referred to in paragraph 3(0) of the

despatch, we have examined again the minutes on this

point in the light of our discussion.

As I explained to

you, whilst we entirely appreciate the necessity of

avoiding any impression that the Municipal Council is

to have a mere shadow, and not the substance of power,

we should feel great difficulty about the notion of à

complete surrender of powers to the Municipality.

I hope, however, that you will not feel too much

difficulty in accepting the second sub-paragraph of

paragraph 3(o) in view of the revised wording in paragraph 3(g).

As regards the second sub-paragraph of paragraph 3(1),

where the same principle is involved, I think the wording

now proposed brings out more clearly our concept that it is

in the field of rates that the Municipal Council must be

In our discussion you drew attention

allowed discretion. (In

to paragraph 2(h) of our telegram No. 329 of the 21st February.

This, however, was drafted Hefore Roberts-Wray had had an

opportunity of studying the subject in detail. When he

had done so he pointed out that it is from rates and

licence duties that local authorities obtain the bulk of

their revenues, and that it would, in fact, represent a

most unusual departure from normal Colonial constitutional

principle to empower a Municipality to levy taxes, in fact

it would be quite exceptional to delegate even to a Legislature

freedom to raise money in this way, and dispose of revenues

thus obtained. The importance which we feel must be bound to

attach to the principle that control of finance must be

retained

(30)

(4)

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