Colonial Despatches

In answer to the enquiry contained in your despatch of the 4th July No. 50, as to the liability of the Governor, the Colonial Secretary and the Royal Marines employed at San Juan to taxation under the provisions of "An Act to impose aTax Tax on Salaries and for other purposes," to which you have lately given your assent, I have to say that, in my opinion, all salaries payable from Colonial Funds whether included in the Civil List or not, are properly taxable by a General law of this nature, but that it cannot be allowed that the pay of soldiers or sailors, who are paid from Imperial funds should be so taxed.

Under these circumstances the Act under consideratin will not be sanctioned untilit it is made clear that the Tax is not to apply to Officers or others paid from Imperial funds for the benefit of the Colony.