Present Position
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in paragraph 6 above.
10.
We have been waiting for some time for the Governor
to send us his proposals for modifying the Local
Government system in the Colony in the light of the
exhaustive investigations outlined in paragraphs 4-9
above. The latest indication that we have of the
Governor's thinking on the subject is contained in
his telegram No. 457 of 10 July (copy attached).
11. We have told the Governor in reply to that telegram
that we fully agree that the first step should be the
rationalisation of the Urban Council by disentangling
it from the Central Government and making it more
efficient and more responsible. An approach whereby
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new functions will have to be paid for out of rates
imposed by the Council seems the key to making it more
efficient. This should also help to create a sense of
responsibility, but we have told the Governor that we
think it important from this point of view that the Council
shouldbe given an adequate range of functions. We have
also told him that we see advantage in the creation of a
new authority in Tsuen Wan and we have asked him whether
paragraph 2(iii)(B) of the attached telegram is intended
të rule out such a possibility.
12. Mr. Royle will be having a meeting with the Urban
Council during his visit and it is more than likely that
the Council will express to him their resentment at the
long delay which has occurred in the formulation and
publication of the Hong Kong Government's decision
in this matter. It would accordingly be advisable for
/the.........
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