CONFIDENTIAL

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5.

However, the White

Several of the elected members on the Urban Council have

made it clear that they are generally dissatisfied with the

White Paper particularly for not giving the Council the

additional powers it had been asking for.

Paper's reception by the present unofficial members of the Urban

Council appears to have been less hostile than one would have

expected. The one proposal which the elected members are

objecting to formally is the composition of the Council, and they

have written to the Government requesting that the proposed

ratio of membership in the "new" Council of 12 appointed and

12 elected be changed to 12 elected and 10 appointed.

6. In the Legislative Council Debate on 9 February, the White

Paper was supported by an overwhelming majority of unofficial

members and its proposals

despite their limited scope

accepted in general as a practical proposition under Hong Kong's

present economic and political atmosphere.

7. We have heard no more from the Hong Kong Government since

seeing the reports of the Legislative Council Debate. The

proposed date of implementation of these changes quoted in the

White Paper remains as April 1973.

8.

When we examined the proposals last summer we thought that

the new financial arrangements would at least give an opportunity

of seeing whether the Council could and would face up to

responsibility in the efficient performance of its proper

functions.

A copy of the saving despatch sent to the Governor

in June 1971 is attached.

3.

CONFIDENTIAL

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