CO129-348 - Governor Sir Lugard - 1908 [7-10] — Page 343

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Government, would become severed from the Colonial Assets.

The second point is that in the event of

bankruptcy of a Crown Colony the Imperial Government, though

it does not guarantee its public loans, yet is considered in

honour to be ultimately liable to the lender. This was admit-

-ted by both sides of the House during the debate some 6 or 7

years ago on Mr. Chamberlain's Colonial Loans Bill. Those who

lend to the Colony, as is now well-known, do so relying on this

ultimate liability. But here is a Fund constituted out of the

Civil Servants' contributions, taken over compulsorily, and

there is we absolutely no guarantee in the event of the bank-

-rupter of the Colony. The salaries cannot be paid that is

part of the contract of service: but the pensions to the

ought

widows and orphans put I submit in equity to be made secure

either by the Imperial Guarantee, or by being made a First

Charge on the Colonial Assets.

ellency

Frederick Lugard, K.C.M.G., Governor of Hongkong.

I have etc.,

(Sd.) F. T. Piggott,

Chief Justice.