At present the Urban Council makes by-laws on a wide variety of subjects and these have the full force of law; but its financial inter- est is restricted to a scrutiny of the department's annual budget and of its building programe before these are submitted to the Finance Committee (wholly unofficial) of the Legislative Council. If it or its successor is to have the power to impose special taxation for specified municipal services this will be a complete, though probably not imprac- ticable, breach with local tradition. A recent Governor quoted by Lennox Mills said in Council "This Colony is so small and compact that it is in effect a large township and the Government of Hong Kong is and must always be mainly concerned with municipal affairs".
26th November, 1946.
Chatham House
10, St. James's Square, London, S.W. 1,