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CONFIDENTIAL

VISIT OF THE HINISTER OF STATE

(LORD SHEPHERD)

TO HONG KONG. MAY/JUNE 1969

Note No. 3

2.

REORGANISATION OF LOCAL ADMINISTRATION

A reorganisation of local administration in Hong Kong, under examination since the publication in early 1967 of an official Working Party Report on the subject, has been delayed by confron- tation and its aftermath. We do not think that the Governor has yet formulated firm proposals about how to proceed; but he knows that the Minister wishes to discuss the subject during his visit,

The attached submission (Annex A) which did not reach the Minister before his departure was prepared with these discussions in view. It sets out (paragraphs 3-11) certain guide lines for the Minister's use. These tend to support the somewhat cautious first steps recommended in Mr. Dickinson's report last year. Sir Arthur Galsworthy agrees with the submission and in his minute of 27 May (Annex B) has suggested that the Minister's attention should be drawn to the example of Gibraltar as a further argument against the Hong Kong Urban Council's proposal for a single local authority having co-terminous jurisdiction with the Central Government. The Minister, has himself stressed the need for caution (paragraph 4 of Annex A).

3. On the point raised by Sir A. Galsworthy in the last paragraph of his minute (Annex B), Mr. Dickinson's proposals envisage that the reconstituted Council would have non-mandatory and non-exclusive powers to provide and operate primary and secondary schools, adult education and evening institutes.

Hong Kong Department 28 May, 1969

CONFIDENTIAL

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