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"Once the Council ceased to be able to defend itself effectively against financial requisitions or arbitrary interference with its rights of taxation, its whole position as an independent authority within its own sphere would be undermined, and a vital element in the economic security at present afforded by the Settlement would disappear." (Vol. II, Part V, p. 146.)
(b) Retention but Revision of the Land Regula- tions." The present basis on which the government of the Settlement rests should still be maintained. . . . the present basis is, in effect, that of an international charter. But.... the Land Regulations of 1869 are very far from providing an adequate constitution for the Settlement under the changed conditions of to-day. It is therefore desirable that negotiations for the revision of the Land Regulations should be entered into between China and the Foreign Powers concerned." (Vol. II, Part VI, p. 151.)
"The Settlement, when its position and functions are rightly understood, means too much to China and to nations trading with China-and, therefore, to the world at large to have its affairs left to the hazards of piece- meal and makeshift arrangements, or to be permitted to remain indefinitely a subject for irritating and inconclu- sive international controversy." (Vol. II, Part VI, p. 152.)
(c) Recommended Developments.-The following are the chief developments recommended by Mr. Justice Feetham.
(1) INTRODUCTION OF CHINESE RATEPAYERS INTO THE MUNICIPAL SYSTEM.
"In place of the annual meeting of foreign rate- payers.... two ratepayers' meetings to be held, one repre- sentative of foreign ratepayers and one representative of Chinese ratepayers. The proposals which are, under existing provisions submitted only to the Annual Meeting
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of foreign ratepayers to be submitted separately to each these meetings, and resolutions to be taken thereon; where the two meetings concur in adopting a particular resolution, their joint decision to be binding, but in cases where the two meetings come to different decisions, their resolutions to be advisory only, and the binding decision to rest with the Council, which, before arriving at its final conclusion, will review the question afresh in the light of the proceedings of the two meetings and of the resolutions adopted." (Vol. II, Part VI, pp. 182-3.)
(2) ENLARGEMENT OF COUNCIL.-The Council to be enlarged so as to consist of not less than twenty-two and not more than, say, thirty members; the number of Chinese members to be increased so as to be (a) not less in proportion to the number of the whole Council than it is in the Council as at present constituted, (b) greater than the number of representatives of any other single nationality. Until procedure for the public election of Chinese members can be introduced, the present system of election by Chinese organizations to continue. (Vol. II, Part VI, pp. 184-5.)
(3) STRENGTHENING OF THE COUNCIL.-Power to make bye-laws should be vested in future in the Council instead of special meetings of ratepayers, "the Council to be required, before making any new bye-laws, to give notice of the proposed bye-laws by publication of the draft in the Municipal Gazette, so as to give opportunity for public criticism and to enable objectors to make their views known." (Vol. II, Part V, p. 184.)
(4) SUBSTITUTION OF A NEW COURT FOR THE COURT OF CONSULS.-It was shown in Section III (c) above that the Municipal Council, in its corporate capacity, is amen- able (as defendant) to the Court of Consuls. "The non- inclusion in the Court of any Chinese member is not in harmony with new constitutional developments." (Vol. II, Part V, par. 3 p. 234.) Partly for this reason, and also in order that satisfactory results may be obtained
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