CONFIDENTIAL
in endently, to work out a possible alternative to large-scale
changes, based on improving the existing institutions:
this
officer completed his report in March 1968. His recommendations
have been the subject of further consultation with interested bodies.
8. When Lord Shepherd visited the Colony in June, 1969, he held
discussions on this subject with the Urban Council, with the
unofficial members of Executive and Legislative Councils and with
the Governor and officials. In general the Minister made it clear
that he favoured a gradual and cautious approach to the development
of a local authority system: and in final discussions with the
Minister the Governor undertook to formulate proposals as soon as
possible. His proposals are now awaited. We understand that
consideration will shortly be given to these in Executive Council.
The Urban Council's performance or its responsibilities has
not been impressive and there must be serious doubt about the
competence and efficiency of other local authorities that may be
established. In addition there is the danger that, in conditions
of electoral apathy, any predominantly elected body might fall under communist control (as did the Heung Yee Kuk, which was suspended
for this reason in 1958/59).
Accordingly, we think it likely that
the Governor's proposals will be confined to a modest increase in
the functions and powers of the Urban Council, together with a
measure of financial responsibility, and for the rest will do no
more than envisage the establishment of urban councils with
similar functions and responsibilities for the growing urban
concentrations in the New Territories.
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