No. 49

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 a 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 until 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.