CO537-3703 — Page 48

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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