that this step is taken in Hongkong,

it must be taken also in the other Eastern

colonies as I do not feel confident that

the change in any

or all of them

will be a change for the better.

(2) because as the Chinese will be

excluded more rigidly, probably,

from the "Executive than from the Legislative Council.

(3) because Sir William Robinson &

other Governors

have already consulted unofficial

Members on matters on

which their advice is valuable.

I am inclined to think that, if any change is made, it should be in the

direction of trying to separate purely

municipal matters from the work

of the colonial government and entrusting

them entirely to an unofficial Board

where there is an unofficial majority.

It will be exceedingly difficult to

make such a division, and it will be

seen that the Governor

does not regard

such scheme with favour.

It occurred to me that the Sanitary Board, which has an unofficial element,

might be expanded into a municipal council.

Being given the proceeds - or such proportion of them

as comes from the Town -

of the "Assessed taxes", i.e. the rates, which now

contribute to the colonial Revenue $400,000

per annum;

Page 459

and I see that some such

change is suggested in the Weekly Press.

13 June

But I have been talking

to M. Cooper

the Director of Public Works, and the difficulty

seems almost insuperable of deciding what

Public Works should be done by Imperial government & what by a municipality.

If the drainage, Water supply, and roads of the Town of Victoria are

placed under municipal

control, there will be little left for

the colonial government & its Public Works department

Still there may

be some practicable compromise on the subject

and it is worth while suggesting

to the Governor for future consideration.

2. I should suggest that the despatch

be answered

1. with a no uncertain declaration that

Hongkong will

remain a Crown Colony;

2. with an addition to the effect that

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