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7.

As regards your sixth paragraph, we agree

to the amendment proposed.

8.

The suggestion in the seventh paragraph of

your letter that the proposals "should be presented

as no more than an interim measure" is not one

which would be acceptable to the Secretary of State.

of cruise,

No measure of constitutional reform should be

regarded as final. On the other hand, it would

be wrong to suggest that the present proposals

possible are interim in character only, with the implication

that they are likely to be followed in the near

future by a further constitutional advance. We

agree, however, with your Unofficial Members' view

that if at some future date direct election to

the Legislative Council is introduced, the principle

that only British subjects would be granted

franchise must then be reverted to. The franchise

proposals now under consideration refer only to

indirect election and those suitable for direct

election raise quite different issues.

9. As to the possible time-table, we agree with

the view set out in the 8th paragraph of your letter.

10. As noted in the 9th paragraph of your letter

we realise that there are likely to be difficulties

in the particular circumstances of Hong Kong in

devolving on the Urban Council more real

responsibility for urban affairs, but we hope that

it will be possible to produce satisfactory proposals

in due course.

11. We trust that, after consulting the Members

of the Executive Council, you will be able to let

us have your further comments as soon as you

conveniently can so that the despatch can be sent

to arrive as soon after Grantham's return as

possible.

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