CONFIDENTIAL
(a)
F
(e)
an Annex C detailing the existing functions of the
Urban Council and the changes now proposed, and
an Annex D setting out the proposed new financing
arrangements.
4. We have long been aware of the Governor's view (which we
share) that there must be a gradual and cautious approach to
this matter. This is dictated by the political considerations
involved which are clearly presented in the covering memorandum.
A year ago the Governor informed us of his conclusion "that the
best that can be done for the present is to bring some order
into the present Urban Council and straighten out its more
obviously peculiar features as a local authority. What I am
aiming at therefore as a first step is a process of disentangling
it from the central Government and making it stand as much as
possible on its own feet, with its responsibilities and powers
properly defined".
5. We informed the Governor at the time of our agreement with
this approach which is clearly reflected in the proposals now
put forward.
6. The memorandum (paragraph 4) makes it clear that the
Governor does not regard the "local authority" concept as suitable
in Hong Kong's particular circumstances; that he favours the
existing system of "Government by discussion" through a network
of advisory bodies; and that it would be preferable to offer
the people of Hong Kong an opportunity of participating to a
greater degree in Government processes by developing these
bodies on a Colony-wide functional basis rather than by investing
additional powers in the Urban Council.
2.
CONFIDENT IAL
17.