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11.

I should add that a move along these lines might sooner or later raise the question of devolution of power from Westminster, though perhaps not in so acute a form as in the case of an elected or partially elected Legislative Council. It is true that HMG has been accustomed to ride Hong Kong on the lightest of bits, but nevertheless the Secretary of State is constitutionally responsible to Parliament for every act of the Hong Kong Government.

Though it has rarely been found necessary to use this constitutional power to change the preferred course of policy or action in Hong Kong, it has occasionally happened. But suspicion of such intervention is chronic, and is worked on by the Left Wing and affects the Government's credibility. Dependence on Britain is entirely accepted here, as is the proposition that when UK interests are directly involved the last word must be with IMG. But it is strongly felt that on purely local matters the last word should be local and be seen to be local. It would be prudent to expect that the more power is placed in local hands the more will this point of view be pressed.

12.

Apart from a change along the above lines it must be my constant pre-occupation to appoint members to Legislative Council from as wide a cross-section of the community as possible. Two and a half years ago I came here determined to do this, but have only succeeded a little, and I am depressed at how difficult it has proved in practice, as I know my predecessor was before me. The crux of the matter is that if one is not to have a legislature whose authority stems from democratic election, it is necessary to achieve authority and effectiveness by the application of other criteria, such as professional expertise, capacity for conducting business, time to devote to it, and knowledge of the English language, and some distribution of members between the main groupings in the Colony. It is also necessary before appointment, that members command the respect of a significant section of the public. In practice this tends to restrict candidates to people who have come to notice through the time and effort they have devoted to public and charitable work, which in turn usually means that they are well-off,

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