CO129-495 - Governor Sir Clementi - 1926 [11-12] — Page 448

(3).

of unsecured debt.

If we desire to keep some kind of central govern- ment in being for the purpose of tariff conference we seem to be approaching moment when we shall have to try and devise means of finding funds for that purpose. No sources other than customs revenues are available. Three courses seem to be open to us, namely:

1. Enforcement of Washington surtaxes and advances by banks secured thereon,

2. Continuance of famine relief surtaxes for upkeep of central goverment services.

3.

Release of Inspector General of Customs sur-

plus or a portion thereof for the same purpose.

Principal factor in deciding on course of action

must be importance of safeguarding ourselves as far as

possible against provincial opposition to provision

of free money to central government out of customs

revenues. To this end amount of funds provided must

be as (? small) as possible and their expenditure as

far as possible controlled.