CONFIDENTIAL
XCC(71)20
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Conclusion. This paper accepts the Urban Council as an established fact of life in Hong Kong with a useful role to play in the Colony's administration and offering scope for individuals anxious to play some part in the Colony's affairs. While its antics are at times irritating it does not command widespread public support; and to this extent it can and does provide a useful safety valve for those citizens with an inclination to politics. This paper makes proposals for putting an end to the long debate on the proper area of activities for the Urban Council and seeks to make this decision more palatable to the Councillors and the public by giving the Council more autonomy, both financially and otherwise, within its proper sphere. In general, the aim has been to reduce possible areas of friction between Government and the Urban Council and to give the latter the maximum dis- cretion in planning and executing their activities. It is not possible in this situation simply to do nothing; the changes proposed in this paper (regard- less of pressures by the Urban Council) deserve to be put in hand as soon as possible.
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proposals for publication on the following lines!
Summary, Honourable Members will be invited to approve
(a)
the establishment of District Councils is not acceptable;
(b)
apart from the additional licensing duties listed in paragraph 8(c), it is not intended to impose additional functions on the Council;
(c)
(d)
(e)
@4
(f)
(g)
no decision has yet been taken on how best to co- ordinate public housing efforts;
henceforth the Urban Council's proper area of activity will be defined as follows :-
(i)
environmental public health, including
sanitation and hygiene;
(ii) recreation and amenities, including the provision
of entertainment by the Council;
(iii) the provision of cultural services;
the Urban Council's title will remain unchanged;
S
the Council will be given substantial financial autonomy by having its own rate (derived initially from net expenditure in 1971/72 on recurrent and Special Expenditure - but not Works items). It will be required to raise capital funds in the market, with Government guarantee. However, before determining the rate for each subsequent year the Legislative Council will have to approve the Urban Council's budget for that year;
for its first financial year under these new arrangements
· Government will give the Urban Council a "pump- priming" once-for-all grant of up to $20 million to spend as it pleases on capital or recurrent items;
CONFIDENTIAL