CO537-1651 — Page 63

on 54149/46 (dup. attached)

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5.

I recognise that the lack of enthusiasm

for the Municipal Council proposal is due in

part to the fear of domination by the Kuomintang,

and that there is some basis for this fear.

I have read in this connection, with some concern,

the memorandum enclosed with your confidential

despatch of 28th November, from which it appears

that the Kuomintang are in a strong position to

influence the Chinese population in Hong Kong.

To

Muis

JOMA

This is, of course, a factor which did not arise

in the case of Singapore and one which might

is an argument

provide support for the Municipal Council

Since

proposals in Hong Kong, on the ground that the

Kuomintang would have less opportunity of

influencing important decisions of policy through

unofficial representation on a Municipality than

through an increased and elected unofficial

membership of the Legislative Council, which would

be the alternative course of constitutional

development. On the other hand, it is arguable

that in practice, it would be possible to

exercise more control over elements who might

be subject to Chinese political influence,

were they elected members of the Legislative

Have

Council (on which at the present stage it would be

a story repientation of fried unders reasonable to retain an official majority) than

it would be if they were elected members of a

largely autonomous Municipal Council, of which

there could be no official representation of the

Central Government. (In this connection I may say

that I heartily agree with your view that it

is essential that if a Municipality is created,

it should have genuine authority, including

financial responsibility, within its allocated

functions

6. It