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Lord Sankey's draft next discusses the reservations to complete responsibility

which must be made in the transition stage. The Governor-General will be respon- sible for defence and foreign relations. Of course, his revenue must be secured for the conduct of these Services, and it is proposed that he should be enabled "to require" the necessary appropriations. In respect of general -finance the Indian Ministers would be theoretically responsible, but the Governor-General would have the power to intervene if he thought that the Ministers' policy seriously prejudiced "the credit of India in the money market of the work!." An important part of the machinery for ensuring sobriety of finance is a Reserve Bank which would control currency and exchange.

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