CONFIDENTIAL
For discussion
on 28th September 1971
XCC(71)52
Copy No .... of 27
MEMORANDUM FOR EXECUTIVE COUNCIL
THE URBAN COUNCIL AND THE SCOPE FOR LOCAL ADMINISTRATION
A
B
Honourable Members will recall that on 1st June 1971 after considering memorandum XCC(71) 20 (which is attached at Annex A), Council advised and the Governor ordered:
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that, subject to the matters detailed below, the proposals in the memorandum be approved as the basis for the pro- duction of a White Paper to be resubmitted to Council before it is published and laid on the table in the Legis- lative Council:
(a) the franchise should not be withdrawn from persons
living in the New Territories;
(b) the White Paper should make it quite clear that Govern-
ment approval will be required before the Council can raise capital funds in the open market;
(c) consideration should be given to including in the Council's
share of the rate an amount sufficient to cover interest payments on capital raised in the open market in appro- priate cases where the project could not by its nature be viable;
(d) the powers of the Chairman, and whether or not, if a
member, he would be replaced by another member upon becoming chairman, should be clarified;
(e) the earliest date for introducing the scheme would be
1st April 1973.
A draft White Paper which has been discussed with the Departments most concerned is now submitted for consideration by Honourable Members at Annex B. This paper is based broadly on the arguments contained in the memorandum XCC(71) 20 but some changes have been made in order to make the paper more suitable for publication. The more complicated Annexes, for example, the Annexes dealing with detailed financial arrangements have not been included.
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On 23rd June 1971 the Finance Committee of the Legislative Council considered the implications of giving greater financial autonomy to the Urban Council and took note of the proposals in memorandum XCC(71)20. In view of the fact that the Finance Committee of the Legislative Council has not formally approved the grant of any funds to the Urban Council, no specific sums are mentioned in those sections of the White Paper which deal with financial matters,
CONFIDENTIAL
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