local opinion in formulating proposals for the

creation of a largely autonomous municipality,

whose members would be elected under a wide

franchise, and to which would be transferred many

of the Services at present administered by

Government. The Governor of Hong Kong, has, however,

now come to the conclusion that, liberal as

his proposals were, they might not fully satisfy the

aspirations of the people of Hong Kong for a

responsible share in the management of the affairs

of the Colony. With my approval, therefore, he has

now decided to embark upon a different approach to

this problem. He will again take counsel with

responsible public opinion in the Colony with a

view to formulating proposals for broadening the

basis of the Government itself by a system of popular

election of a substantial proportion of the members

of the Legislative Council. In considering his new

proposals, the Government will, of course, have the

advantage of all the thought which has been

devoted to these matters during the past 7 months."

9. I appreciate that in discussion with you before

your return to Hong Kong as in my predecessor's

public statement the view was taken that the most

profitable line of progress was likely to be the

establishment of a Municipal Council. The purpose

of this telegram is that I may be satisfied that, the

factors mentioned in paragraph 3 above are fully

considered before a final decision is taken.

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