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some leeway as has been shown by the recent decision to release considerably more land this year than last.

13. The Rent Control Act attracted much attention but was generally accepted as a necessary piece of social legislation. It does not so far appear to have affected land values significantly.

Domestic Political Issues

14. Apart from URBCO members, there seem at present few sources of pressure for democratisation in terms of increased franchise. On the other hand some people, including the Chief Secretary, think that this type of demand will grow. Certainly the rise of an educated, and travelled, middly) class is likely to speed this process.

15. For the moment however, the system of appointment of unofficials will remain much more important than democratisation. The character of EXCO and LEGCO in the aftermath of Y K Kan will thus be extremely interesting. No startling change is likely in what is essentially a traditionally minded body. However, the removal of the undoubted inhibition of Y K Kan's domination of EXCO and UMELCO should encourage original thought. Some new blood may be infused using some of the people thrown up by the prospective local government elections. But these resources should not be exaggerated. It will still be necessary to find appointees with time and interest to spare. There are such people ( they are indeed to be found in the young professional middle class). But there are many other demands on their time, including indeed the increasing number of local and functional advisory boards.

16. The Urban Council remains a problem. It does contain competent people. But it is factional and its members spend too much time ctiticising each other. (This came out even during my short session with them). Above all they are dominated and bullied by Mr Sales whose chairmanship they resent but whom they cannot unite to remove. They agree on the need to defend the Council against further erosion of its powers but on not much else. Meanwhile Mr Sales will continue his quite effective, if self-advertising, work in the cultural field, with a rather jealous eye on the Government's own efforts.

Social Questions

17. It is possible that the early Eighties may in fact see more public interst in social and labour matters than in political develop- ment. Industrial discontent in the Civil Service is already exercising the Government and the rich-poor gap is still glaring. The Chief Secretary certainly sees this as a problem. The Governor claims to be less concerned, pointing to the whims of recent industrial legislation, especially the recent workment's compensation laws. However he too sees the need for more concentration on industrial safety and believes that eventually a contributory pensions

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