(e) The extension of the arena of public usefulness for those who have rendered eminent services to the State would act as an additional stimulus to citizens to serve His Majesty with increased zeal and fidelity.

Apart from the instances given above, the Legislative Assembly has, on different occasions, passed resolutions dealing with this subject, and during last Session, by a resolution on the Estimates, the Government was placed in a very embarrassing position. Its supporters were anxious to bring about a change in connection with the Parliamentary authorisation of expenditure affecting Government House, and to prevent a crisis the Government had to practically force the hands of its own party, and reverse a previous motion against its own views and opinions. Your advisers have no desire to be placed in a similar position again, as they could not guarantee being successful in securing for a second time the restoration of an item on the Estimates after the House in Committee had deleted it, as was the case last year.

This Government wish to point out clearly that it is not desired that any change be made during Your Excellency's term of office. as Governor, but when such term has expired and a new appointment has to be made, due effect should, we submit, be given to the wishes of the people as indicated herein.

Finally, while assuring Your Excellency of the undoubted loyalty of the people of Western Australia to the Throne and person of His Majesty the King, we beg to repeat our opinion. that, by conceding to local wishes in this matter, the Imperial Government would strengthen the bonds of unity and Empire.

The Government sincerely trusts, therefore, that Your Excellency will submit these representations to the Right Honourable the Secretary of State for the Colonies, and urge that favourable consideration be given thereto.

July, 1913.

J. SCADDAN,

Premier.

N.B.-In connection with the foregoing I would refer Your Excellency to folio III of " Hansard," 1912, pages 2930 and 3470, and folio IV of Hansard," 1912, pages 3921, 3927, and 3947.

No. 4.

The Secretary of State for the Colonies to the Governor of Western Australia.

SIR,

Downing Street, 19th September, 1913.

I have the honour to acknowledge the receipt of your despatch of the 25th July,* in which you forward a communication from your Premier urging the adoption by His Majesty's Government of the motion passed by the Legislative Assembly on the 27th

* No. 3 in Appendix.

November, 1912, in favour of the appointment of Governors of the State from among the citizens of the Commonwealth.

2. It is hardly necessary for me to say that I attach great weight to any proposal coming before me with the support of the Legislative Assembly and the endorsement of your Ministers. I regret, however, to have to inform you that, after giving the matter the careful attention which its importance demands, I feel compelled to adhere to the opinion expressed by Lord Crewe in the despatch which he addressed to the Governor of South Australia on the 9th October, 1908,* and of which he forwarded a copy to the Governor of Western Australia in his despatch of the same date, viz., that a change in the present system could not be entertained unless it is to be applied to all the Australian States, and not to one alone, and until public opinion in Australia is demonstrated to be overwhelmingly in its favour.

3. I have not failed to observe that your Premier deprecates the treatment of the question from this general point of view. I regret, however, to be unable to agree that the question can be approached with special reference to the case of Western Australia, and I notice that the arguments which he adduces in favour of the proposal are identical with some of those adduced by the Premier of South Australia in 1908. It is true that the proposal made by the Premier of South Australia in 1908 was for the appointment of citizens of the State to the office of State Governor, whereas the present proposal is for the appointment of citizens of the Commonwealth. I recognise that this modification would considerably enlarge the field of His Majesty's choice, but it hardly appears to me to affect the desirability of treating the question from the general standpoint, for if the question were now decided on the desired lines, with sole reference to the case of Western Australia, citizens of the other States would be marked out for appointment to the Governorship of Western Australia but not for the Governorship of their own States.

4. Even assuming that all the States were in agreement with the proposal of your Premier, the adoption of a uniform system, under which His Majesty's choice of a Governor would be limited to citizens of the Commonwealth, would still remain substantially open to the objection pointed out in paragraph 4 of Lord Crewe's despatch of 9th October, 1908,* referred to above; for the appointment of a Governor would, in the circumstances, practically have to be made in accordance with the wishes of the Ministry of the day.

5. Whilst the States continue to be within their sphere sovereign States and their Governors are appointed by the Crown, it does not appear to me that His Majesty's choice of a Governor should be limited in the manner proposed.

DIEU

AGREEMENT

BETWEEN

The British Government and the Government of the Irish Free State

IN RESPECT OF

Double Income Tax

Presented to Parliament by
Command of His Majesty

LONDON:

PRINTED & PUBLISHED BY HIS MAJESTY'S STATIONERY OFFICE. To be purchased directly from H.M. STATIONERY OFFICE at the following addresses: Adastral House, Kingsway, London, W.C.2; 28, Abingdon Street, London, S.W.1; York Street, Manchester; 1, St. Andrew's Crescent, Cardiff;

or 120, George Street, Edinburgh;

or through any Bookseller.

The British Government and the Government of the Irish Free State, being desirous of concluding an Agreement for the reciprocal exemption from income tax and super-tax of persons who are resident in Great Britain (including Northern Ireland) or in the Irish Free State but are not resident in both countries and for the reciprocal granting of relief from double taxation in respect of income tax (including super-tax) to persons who are resident in both countries, and being desirous of making such supplemental consequential and incidental provisions as appear necessary or proper for the purposes of such Agreement, have agreed as follows:

1.--(a) Any person who proves to the satisfaction of the Commissioners of Inland Revenue that for any year he is resident in the Irish Free State and is not resident in Great Britain or Northern Ireland shall be entitled to exemption from British income tax for that year in respect of all property situate and all profits or gains arising in Great Britain or Northern Ireland and to exemption from British super-tax for that year.

(b) Any person who proves to the satisfaction of the Revenue Commissioners that for any year he is resident in Great Britain or Northern Ireland and is not resident in the Irish Free State shall be entitled to exemption from Irish Free State income tax for that year in respect of all property situate and all profits or gains arising in the Irish Free State, and to exemption from Irish Free State super-tax for that year.

(c) Exemption under this Article may be given either by discharge or by repayment of tax, or otherwise, as the case may require.

2. Relief from double taxation in respect of income tax (including super-tax) in the case of any person who is resident both in Great Britain or Northern Ireland and in the Irish Free State shall be allowed from British income tax and Irish Free State income tax respectively in accordance with and under the provisions of Section 27 of the Finance Act, 1920, provided, however, that

(a) the rate of relief to be allowed from British income. tax shall be one-half of that person's appropriate rate of British tax or one-half of his appropriate rate of Irish Free State tax, whichever is the lower,

(b) the rate of relief to be allowed from Irish Free State income tax shall be one-half of that person's appropriate rate of British tax or one-half of his appropriate rate of Irish Free State tax, whichever is the lower,

(c) for the purpose of determining that person's appropriate rate of British tax, the rate of British income tax shall be ascertained by dividing by the amount of his total income from all sources as estimated for income tax purposes the amount of tax payable by him on that income before deduction of any relief granted in respect of life assurance premiums or any relief granted under the provisions of the said Section 27 as amended by this Article, and the rate of British super-tax shall be ascertained by dividing the amount of the super-tax payable by that person by the amount of his total income from all sources estimated for super-tax purposes,

as

(d) for the purpose of determining that person's appropriate rate of Irish Free State tax, the rate of Irish Free State income tax shall be ascertained by dividing by the amount of his total income from all sources as estimated for income tax purposes the amount of tax payable by him on that income before deduction of any relief granted in respect of life assurance premiums or any relief granted under the provisions of the said Section 27 as amended by this Article, and the rate of Irish Free State super-tax shall be ascertained by dividing the amount of the super-tax payable by that person by the amount of his total income from all sources as estimated for super-tax purposes.

3. (a) Any person who is entitled to exemption from British income tax by virtue of Article 1 (a) of this Agreement in respect of property situate and profits or gains arising in Great Britain or Northern Ireland shall, if and so far as the Oireachtas of the Irish Free State so provides, and subject to any exemption. or relief to which he may be entitled under the laws in force in the Irish Free State, be chargeable to Irish Free State income tax in respect of such property profits or gains.

(b) Any person who is entitled to exemption from Irish Free State income tax by virtue of Article 1 (b) of this Agreement in respect of property situate and profits or gains arising in the Irish Free State shall, if and so far as the British Parliament so provides, and subject to any exemption or relief to which he may be entitled under the laws in force in Great Britain and Northern Ireland, be chargeable to British income tax in respect of such property profits or gains.

(c) Any person who is entitled to relief by virtue of Article 2 of this Agreement shall, subject to such relief, be chargeable, if and so far as the British Parliament so provides, to British income tax in respect of property situate and profits or gains arising in the Irish Free State in like manner in all respects as if he were resident in Great Britain or Northern Ireland but not resident in the Irish Free State and shall, subject to such relief as aforesaid, be chargeable, if and so far as the Oireachtas of the Irish Free State so provides, to Irish Free State income