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Legislative Council."

The Crown however reserves the power of disallowance and the power to legislate by Order in Council for

the peace, order and good government of the Colony.

4. The names of members of Executive Council and Legislative

Council appear in the attached personalities list. There is no

elected element on either Council, mainly because the Chinese Government have made it clear that any constitutional progress

towards self-government would be unacceptable to them. However

some aspects of local government are directed by the Urban

Council, just over one-third of whose members are elected.

REFORM OF THE MACHINERY OF GOVERNMENT

5. At the outset of his term of office, the Governor appointed

a firm of consultants, McKinsey & Co Ltd, to review the machinery

and planning processes of Government, and to make recommendations.

As a result the Colonial Secretariat has recently been reorganised

into six Policy and two Resource Branches. The former deal

respectively with Economic Services, Environment, Home Affairs

and Information, Housing, Security and Social Services. The

Resource Branches deal with Finance and the Civil Service.

reorganisation should speed up the process of Government.

ECONOMIC BACKGROUND

This

6. The population of Hong Kong is 4,103,500 (98% Chinese by

language and race; nearly one-half under 20 years old). The

Colony has few natural resources except its harbour. The

buoyancy of its economy depends largely on overseas trade and

/on

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