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to take over the functions of the Anti-Corruption branch of the police, with wide terms of reference to include education and prevention as well as the detection of corrupt practices; and the arrival of Mr. John Prendergast to lead the operations section of the new Commission.

25. But the problems facing the new Commissioner are immense. In this oriental city what is involved is nothing short of a quiet revolution; and this must somehow be achieved within the limitations of the British legal system, and without the sort of witch-hunt that might totally demoralise the public services on which Government depends.

The Urban Council

26. In the course of the year the Urban Council was established as an entirely non-official body, financially independent, through being funded by a rate of its own, and administering its own sphere of activities. So far, the success of this reform has been striking. Administrative responsibility has quite changed the Council's fractious and negative tone, and has brought a new impetus to the Urban Services Department.

Reform of the machinery of government⠀

27. We have spent a great deal of effort and thought in the past year in initiating and implementing reforms of the machinery of government recommended by consultants. It has been a most time-consuming business, but the result has been a considerable strengthening of the policy-making and controlling system at the centre. This is to be coupled with a matching delegation of authority on day-to-day matters downwards in the Secretariat and outwards to Departments. To my surprise, the latter appears to be a more difficult thing to achieve than the former, but we will persevere in 1974.

Popular attitudes to Government

28. In view of the pressures to which it is, and is likely to be, subject, promotion of cohesion and loyalty amongst the population of Hong Kong is vital. Indeed I do not see how we can hold the Colony together indefinitely unless these civic senses are considerably advanced. The problem is all the greater because the Government is not elected and is expatriate dominated.

29. In spite of this the Government must manage things so that the popula- tion feel that the Government is theirs, and identify themselves with it. The network of unofficial advisory bodies, the dedicated work of unofficials of Executive and Legislative Councils, the work of the Urban Council and that of the City District Officers, taken together produce a good starting point. But it is nowhere near enough. This problem has been my constant care.

30. One approach is to aim at civic pride through drawing up and dramatising adequate social programmes. This we are attempting, and by it have achieved at least a quickening of interest.

31. Another approach is to involve the public and unofficial organisations in the larger decisions of Government affecting the population. This is done by means of the green-paper-and-public-debate technique which I have described above. Though of limited application it too is having its effect.

32. The third method is by direct participation. Though in the Chinese tradition, this is new in Hong Kong. We used this technique of direct participa- tion with striking effect in the 1972 campaign to clean Hong Kong. In 1973 we

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