CO537-2188 — Page 490

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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