It is hoped that the Secretary of State will be able to deal with Drafts X and B by the 16th June when Sir Mark Young is due to reach this country from Hong Kong, so that we may show them to him then and get them off. If any amendments are made in either Draft X or B, the terms of Draft C, which has already been passed, subject to approval of Draft B, may have to be revised. Sir Mark Young himself is very anxious that his despatch and the Secretary of State's reply should be published as soon as possible, and at the China Association's luncheon to Sir Alexander Grantham, which took place yesterday, there was a reference to the absence of any further news about the Municipality. It is, therefore, I think desirable that there should be no undue delay about setting the details and publishing them, but clearly the need for giving the details proper consideration comes first.

As noted in my minute of the 4th June, Sir Alexander Grantham has had a copy of the earlier version of Draft X. I would propose to let him have a copy of the revised draft, as approved, by the Secretary of State, at the same time as it is shown to Sir Mark Young, so that he may have an opportunity of offering any comments. He has, of course, been given copies of all the relevant correspondence about the Constitution and has been kept informed of developments. He has commented on one or two aspects, and I think that it is unlikely that he will have any further comments.

In addition to Drafts X and B, for which the Secretary of State's approval is now required, there are also the questions referred to in the last paragraph of my minute of the 4th June to be settled.

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