NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

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Patent (power of legislation by Order in

Council). The consequences of imposing

a contribution will however be much less

serious if, as is possible with (c), the

proposals are supported by the Executive

Council.

7. The Governor has strongly advised that

HMG should not impose a contribution on

Hong Kong without making some further attempt

to reach agreement with the Unofficial

Members. In addition to the danger of

provoking disorders in the Colony (and the

Governor could expect little or no public

support on such an issue) this would wr

undoubtedly embitter relations between

Hong Kong and HMG for a long time to come.

I am sure that if at all possible we must

avoid the use of the reserved powers for m

issue

this puppepe,

8.

I recommend that the Governor be

authorised to negotiate a settlement on

the terms at Annex I and that the question

of the use of the reserved powers be left

over until the Governor has reported on

the outcome of his approach to the

Executive Council and, if that approach is

successful, on the likely reaction of the however Legislative Council. I understand that the

The Baker Excheeper

Chancellor and the Defence Secretary

prefer the course in Annex II.

In the view of

The shotlegs of time if the Governor is to resume discurs was

I propose that

with his Executive Comment,

between is should be verolied in The Committe,

3.

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any difference

AD-H

your

(145181) Dd. 737490 750M 1/71 Hw.

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