(1) That a system of reserved (V) (a) 'This Conference, while and transferred subjects similar making due allowance for the to that proposed for the necessities or drawbacks of provinces, shall be adopted for transitional scheme, urges that, the Central Government. having regard to the terms of the announcement of August 20, (2) That the reserved subjects 1917, and in order that the shall be foreign affairs progress of India towards the (excepting relations with the goal of a self-governing unit of colonies and dominions) army, the British Empire may be navy, and relations with Indian facilitated and not unduly Ruling Princes, and subject to delayed or hampered, as also the declaration of rights with a view to avoid the contained in resolution IV, the untoward consequences of a matters directly affecting legislature containing a public peace, tranquillity and substantially elected popular defence of the country, and all element being allowed merely to other subjects shall be indulge in criticism unchecked transferred subjects. by responsibility, it is essential that the principle of (3) The allotments required for responsible government' should reserved subjects should be the be introduced also in the first charge on the revenues. Government of India, simultaneously with a similar (4) The procedure for the reform in the provinces. There adoption of the budget should be should, therefore, be a division on the lines laid down for the of functions in the Central provinces. Government into 'reserved' and 'transferred' as a part of the (5) All legislation should be by present instalment of reforms Bills introduced into the and the Committee on division of Legislative Assembly, provided functions should be instructed that, if, in the case of to investigate the subject and reserved subjects, the make recommendations. Legislative Council does not pass such measures as the (b) While, as suggested above, Government may deem necessary, some measures of transfer of the Governor General-in-Council power to the Indian Legislature may provide for the same by should be introduced at the regulations, such regulations to commencement, provision should be in force for one year but not be made for future progress to be renewed unless 40 per towards complete responsible cent. of the members of the government of the Government of Assembly present and voting are India by specifically in favour of them. authorizing the proposed