CONFIDENTIAL
Territories and no agreement at this time as how the need nay best be met. Although it is considered unlikely that the Chinese Government will react unfavourably towards a reorganisa- tion of local Government we must proceed carefully if suspicion of a "transfer of power" is not to be aroused. In addition, in Hong Kong, there is unfortunately a real danger from corruption. We have accepted the Governor's view that the Urban Council should not be allowed to spread its authority
into the new urban areas in the New Territories. The Council's aspirations in this respect are opposed by the inhabitants of the areas concerned. Moreover, Hong Kong is too small a Colony to accommodate both a Legislative Council and a major local government authority. The Urban Council's dissatisfaction with its present role might perhaps be met by widening its responsibi- lities within its present area though this issue is one which the Governor proposes to consider after a new general pattern for local government has emerged.
Hong Kong Department,
February, 1969
CONFIDENTIAL
Page 120Page 121
C.S. 41A
2600077
10,00-2/68-B59873
REF.