4. THE URBAN COUNCIL ARGUED THAT THE SINGLE COUNCIL WOULD BE MORE ECONOMICAL AND WOULD AVOID A CONFUSION OF CONFLICTING POLICIES: THAT IT COULD ALSO AVOID UNDESIRABLE RIVALRY FOR RESOURCES: AND THAT IT WOULD BE MORE CONSISTENT WITH THE POLICY OF REDUCING REGIONAL DIFFERENCES. THE URBAN COUNCIL ALSO CONTENDED THAT THE ARGUMENT THAT A SINGLE COUNCIL WAS TOO BIG AND UNWIELDY WAS UNCONVINCING IN THAT MOST OF THEIR BUSINESS WAS DELEGATED TO SMALLER COMMITTEES.

5. THE HEUNG YEE KUK AND THE DISTRICT BOARDS IN THE NEW TERRITORIES WERE STRONGLY OPPOSED TO THE CONCEPT OF A SINGLE COUNCIL. THE KUK ITSELF HAS BEEN ACCUSTOMED TO HANDLING THE INTERESTS OF THE VERY SCATTERED INDIGENOUS RURAL POPULATION WHICH IT REPRESENTS. THE DISTRICT BOARDS FELT THE INTERESTS OF RESIDENTS IN THEIR DISTRICTS WOULD BE BETTER SERVED BY A COUNCIL SPECIALISING IN THE PROBLEMS OF THE NEW TOWNS AND RURAL AREAS AND ABLE TO DEVOTE MORE ATTENTION TO THESE THAN WOULD A COUNCIL SUPERVISING THESE SERVICES FOR THE WHOLE OF HONG KONG.

6. MOST OF THE DISTRICT BOARDS IN THE URBAN AREA ALSO THOUGHT A SEPARATE COUNCIL FOR AREAS NOT COVERED BY THE URBAN COUNCIL WOULD BE PREFERABLE.

7. THE FINANCIAL AND ADMINISTRATIVE ARGUMENTS WERE FINELY BALANCED: BUT FACED WITH THE OVERWHELMING DESIRE FOR A NEW COUNCIL BY THE PEOPLE OF THE AREAS WHICH SUCH A COUNCIL WOULD SERVE THE GOVERNMENT HAS DECIDED IN FAVOUR OF A NEW REGIONAL COUNCIL.

8. MUCH OF WHAT WAS SAID BY THE URBAN COUNCIL IN PRESENTING ITS VIEWS ON THESE PROPOSALS IS VALUABLE. SOME MEANS MUST BE FOUND TO ALLOW BOTH COUNCILS TO SUPPORT ACTIVITIES IN EACH OTHER'S AREA OF JURISDICTION SO THAT, FOR INSTANCE, THE URBAN COUNCIL WOULD BE ABLE TO SPONSOR SPORTS TRAINING AT THE JUBILEE SPORTS CENTRE AS WELL AS THE QUEEN ELIZABETH STADIUM AND THE NEW REGIONAL COUNCIL WOULD NOT BE BARRED FROM SPONSORING EVENTS IN THE COLISEUM. I AM SURE THE EXPERIENCE OF THE URBAN COUNCIL WILL BE OF GREAT HELP IN DRAWING UP DETAILED PLANS.

9. THE GOVERNMENT'S INTENTIONS ARE THAT THE NEW REGIONAL COUNCIL WILL BE COMPOSED OF FOUR TYPES OF MEMBERS:

12 DIRECTLY ELECTED, CONSTITUENCY-BASED MEMBERS:

9 REPRESENTATIVES ELECTED FROM THE NEW TERRITORIES DISTRICT BOARDS:

3 EX-OFFICIO MEMBERS FROM THE HEUNG YEE KUK, WHO WILL BE THE CHAIRMAN AND THE TWO VICE-CHAIRMEN: AND

12 APPOINTED MEMBERS, THREE OF WHOM WILL, AT LEAST AT THE START, BE MEMBERS OF THE HEUNG YEE KUK, ESPECIALLY CHOSEN TO REPRESENT THE THREE CONSTITUENCIES OF THE KUK.

THIS MAKES A TOTAL OF 36 MEMBERS.

CONFIDENTIAL

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