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*The Guverner read it wen used in the carry '50s. - Ilmum in

Tout war wh.

wanz

Council subject to reference of the matter in question to

the Foreign and Commonwealth Secretary; thereafter, any

proposals must be approved by the Finance Committee of the

Legislative Council and finally by the Legislative Council

as a whole. The balance of Official and Unofficial

membership of the Legislative Council is such that the

Governor is in theory able to pass legislation if he is

prepared to use both his original and casting votes.

have been no precedents for such use of the Governor's

vote in recent years and its use, particularly on such a

potentially explosive issue as that of the defence contribution,

will certainly embitter relations between Hong Kong and HMG

for a long time to come and may even provoke disorders in

the Colony.

9.

There

Alternatively, the necessary legislation could be

enacted by prerogative Order in Council made under the power

reserved by Article IX of the Hong Kong Letters Patent. (This would avoid the build up of tension in the Colony during the passage of the necessary Appropriation Bill)

There is no Parliamentary procedure for the making of such

an Order, but once it became known that the Order had been

made a Member of Parliament might ask a question about it

or try to initiate a debate.

10. It cannot be denied that Hong Kong could afford to

pay a contribution of £8.5 million per annum (and over a

period of 7 years instead of 5 years an even higher figure

might reasonably be expected). The Colony benefits

3.

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/appreciably

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