CONFIDENTIAL

(B)

(i) Local Government.

(a)

Annex F to (B)

(b)

(c)

While there is room for argument on details in

the Department's memorandum, it is clear that

enough work has been done for a decision to be

taken. (If ever a broth was in danger of being

spoiled by too many cooks, this is!)

The Governor's telegram No.457 shows that his

views are turning towards keeping the existing

sphere of territorial responsibility subject to

the erection of a new authority in Tsuen Wan. I

agree with that approach, admittedly instinctively

rather than intellectually. But I do not think we

should lightly break up a body with so long a history

as the Urban Council unless there are clear advantages

to be gained in terms of efficiency and the case for

increased efficiency from any new arrangement seems

far from proved.

But the Urban Council needs to be more efficient and

more responsible. Its present position as an elected

body dependent on the Central Government for funds

and staff and subject to day-to-day approval of its

"decisions" is a recipe for creating discontent and

turning it into a veritable Cave of Adullam, The

approach whereby new functions have to be paid out

of rates imposed by the Council seems the key to

making it more efficient.

CONFIDENTIAL

3-

/(a)...

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