recommendations made to me by Sir Mark Young,

particularly since Sir Mark Young has assured me

that his recommendations can be regarded as carrying

the assent of the majority of those who displayed an

interest in the subject.

It is, as you know, the intention that

both Sir Mark Young's despatch containing his detailed

recommendations and my despatch in reply shall be

published in Hong Kong. The date fixed for publication

is the 24th July and on the 23rd July I hope to make

a further announcement in the House. I shall of course

see that copies of these documents are sent to you.

Correquently

There is no pointstaanduva in my explaining in

detail in this letter why we have decided to adopt

30 as the correct number for the Municipal Council,

since the reasons for this decision are given fully

in Sir Mark Young's despatch.

point.

I will therefore go straight en to your second

There are, I feel, certain fundamental differences

between the circumstances of the former International

Government of Shanghai and those of a Colonial

Government in Hong Kong. I do not feel we can rightly

assume that experiences derived from a system of

administration appropriate to the former would

necessarily be reproduced in the case of the latter.

We shall moreøver be.retaining in Hong Kong a Central

Government which, though it will delegate to the

Municipal Council a large number of its functions

(and it is very definitely the intention that the

Municipal Council should have the substance and not

aurizont

will the mere shadow of power), it nevertheless remain

responsible for laying down the general policies of government. But quite apart from considerations of

this nature, I feel that, at the stage we have reached

to-day in British Colonial affairs, we should find it

impossible to defend any system which, in the circumstances

(see para.2

of H.K. despatc of 22 October)

of

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