§ Sir S. HOAREI beg to move, in page 173, line 19, at the end, to insert:
(4) No deduction in respect of taxes imposed by or under any existing Indian law or any law of the Indian, the Federal, or a Provincial Legislature shall be made, either before or after the establishment of the Federation, from any payment of principal or interest in respect of any loan contracted under this section.The object of this Amendment is to continue in the transitional period the same arrangement for Indian loans, as far as Indian taxation is concerned, as exists at present.
§ Amendment agreed to.
§
Further Amendment made: In page 173, line 21, after "may," insert:
either before or after the establishment of the Federation.
—[Sir S. Hoare.]
§ Motion made, and Question proposed, "That the Clause, as amended, stand part of the Bill."
1117§ 10.36 p.m.
§ Sir B. PETOAs you, Sir Dennis, did not select the Amendment standing in the names of my hon. Friends and myself —in page 173, line 8, to leave out, "of the persons present," and to insert, "of his advisers,"—I should like to put before the Secretary of State the importance of looking into the question to see whether, before the Report stage, he should not alter the words in the Bill in the direction of the Amendment to which I have referred. The Committee will remember that the advisers of the Secretary of State consist of a minimum of three persons or a maximum of six. In a committee of three persons, it is very difficult to say of what a majority would consist. I do not want to have a majority "of the persons present," but "of his advisers." Everybody would know what the majority of the committee was. If the majority were two, there might be only one person present, or there might be two persons present, in which case it would be impossible to decide what was a majority. This Clause deals with the very important matter of the raising of sterling loans—a matter of finance of the utmost importance. Therefore, if the advisory council of the Secretary of State is ever to operate in such matters as are contemplated in this Clause, it is reasonable to ask that there should be in this case a majority "of his advisers" and not merely a majority of the persons who happen to be present on such an occasion. In a case of this magnitude and importance the Secretary of State would see that a reasonable attendance of his advisers were present when he consulted them. I only ask that the Secretary of State should look into that question before the Report stage.
§ 10.39 p.m.
§ Sir S. HOAREI do not think that there is really any reason to make a change in the present arrangement for the transitional period. No inconvenience and no loss so far as loans are concerned has resulted, and I suggest to the Committee that that being so, it is unnecessary, for the transitional period, to impose a restriction which, during the past 80 years, has not been found to be necessary.