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Flagged B.

of these powers.

These misgivings were conveyed to the Governor

in the Secretary of State's Saving Despatch No. 663 (copy attached).

The Despatch informed the Governor that although notification of

non-disallowance of the Ordinance would not be withheld (notifica-

tion of non-disallowance has in fact already been conveyed to the

Governor), its provisions in certain respects represented a departure

from the fundamental principles inherent in the British system of

justice and that further amending legislation would accordingly be

required to remedy the situation.

Flag (3)

4. This Despatch occasioned a reply from the Governor in the form

of a letter to Sir Arthur Galsworthy (copy attached) in which he

queried the conclusions in the Despatch both on legal and practical

grounds. In Sir Arthur Galsworthy's absence, Mr. Moreton replied

(tag to the Governor in a letter dated 8 May (copy attached) in which

he mentioned that our Legal Advisers were taking advantage of the

presence in London of Sir Michael Hogan, Chief Justice, Hong Kong,

to discuss the matter with the latter.

5.

In the course of these discussions, which duly took place, our

Legal Advisers explained the difficulties with which we were con-

fronted in the matter and the course of action which had been

suggested to the Governor in order to remedy the situation.

These are set out in detail in the Despatch. The Chief Justice

mentioned that he had been consulted over the preparation of the

draft Bill: he appeared to favour our suggestion that as part of

the action which we were now proposing (paragraphs 6 and 7 of the

Despatch), consideration could be given to giving District Judges

and Magistrates wider powers for dealing with contempt (although

not so wide as those of the Supreme Court). But he thought that

our proposal that the provisions of the Ordinance should come into

force only when so ordered by the Governor, after receiving a

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