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(but not to the bigges
of 50%)
b)
prices would come down rather than go up). If
the Governor is right and prices do come down this
arrangement will be to the advantage of Hong Kong.
If on the other hand prices go up the arrangement
could be even more advantageous to HMG than our
original proposals.
The Governor reckoned last week that he would be
able to obtain support for his proposals from a
majority of the Unofficial Members of the
Executive Council;
he was much less certain about
the attitude of the Unofficial Members of the
Legislative Council. He suggested it might be
necessary to use the reserve powers to get the
necessary legislation through even if the proposals
were supported by a majority of the Unofficial
Members of Executive Council. I think we need
to think this matter through most carefully and
it would be helpful if we could have the views
of the Governor on the following points -
(i) If Ministers decided to give the Governor's
proposals their blessing should they be advised
to take a decision at the same time about the
use of the reserved powers? In other words,
should there be a decision here and now that
there can be no going below £7.5 million a
year for 7 years? Alternatively, should such
a decision be coupled with and dependent upon
support for the proposals by a majority of
the Unofficial Members of the Executive Council?
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/(ii)