status of the Colony. If the opportunity presents itself the Secretary of State may wish to explain that the detailed arrangements for transfer of powers to the Municipal Council are to be considered further in the light of the recommendations of a duly appointed Commission.

Similarly, we should wish it to be made clear, if occasion arises, that the proposed changes in the Constitution of the Legislative Council do not imply a lessening of the control which the United Kingdom finds it necessary to maintain in Colonies such as Hong Kong to which financial assistance is, or may need to be, extended.

In the light of our discussion you will appreciate that the Treasury has a very lively interest in the

I therefore revision of the constitution of Hong Kong. ask that in future we may be kept fully informed about the transfer of responsibility to the new Municipal

I take it Council. In particular, the recommendations they will be no more of the proposed Commission on the arrangements for the transfer will be of interest to us, and we should like to be consulted about them before action is taken.

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I have dealt so far with the general questions which we have felt it necessary to raise on the proposals in

There are also several your letter of the 27th February. particular questions which I may take this opportunity of mentioning although, apart from (iv) below, they will require further consideration in the light of the Commission's report.

/ (i)

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