2

The Governor and his Advisers held these consultations

and after considering other alternatives he came to the

conclusion, with which I agree, that

(a) a Municipal Council should be set up in

Hong Kong on the widest representative basis possible.

The majority of the members will be elected, and the

Council will gradually assume as many of the present

functions of the Central Government as can appropriately

be assigned to it. The Municipality will include

Kowloon, but not that area of the New Territories outside

Kowloon which by reason of its rural character is not

entirely suitable for immediate inclusion in the area to

be administered by the Municipal Council.

(b) That the constitution of the Legislative

Council should be modified with the object of securing

on that body a more direct and a proportionately increased

representation of the unofficial community. Under his

recommendation, which I have accepted, the official members

will be reduced to seven, and of the eight unofficial

members two will be directly nominated by the Municipal

Council, and one each by the Hong Kong General Chamber of

Commerce and the unofficial Justices of the Peace. The

remainder will continue to be nominated by the Governor.

His Majesty's Government are satisfied that these

measures constitute the best means of achieving their

genuine desire and intention to give the people of Hong

Kong a practical and effective share in the management

of their own affairs,

[Ends].

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