CO537-2188 — Page 117

I will therefore go straight to your second point. There are, I feel certain fundamental differences between the circumstances of the former Lornational Government of Shanghai and those of a Colonial covernment in Hong Jons. I do not feel we can rightly assume that experiences derived from a system of administration appropriate to Fomer would necessarily be reproduced in the case of the latter. te shall moreover be retaining in Hong Kong a Coltral Government which, though it will delegate to the Municipal Comcil a large number of its functions (and it 13 very definitely the intention that the Hunicipal Council should have the substance and not the mere shadow of authority, will nevertheless remain responsible for laying dom the general policies or goverment. But quite apurt frota 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 ircumstances of a territory such as long one's appeared to have the intention of ensuring a permanent

uropea: majority on the unicipal Council.

in your third point, namely, the right of the recognised trade unions to nominate two representatives to the Council, we considered very carefully a suggestion put furaru by r. Mitchell that this provision could better be desi nated in the present circumstances to the Colony as the right of organised labour to nominate representatives, 1.6. omitting any express reference to the trade unions. It is, however, my belief that, untried as those unions are as yet in Sung Tong, it will in the long run be to the Colony'. såviltage" that they should from the very outset have this Emall share in kunicipal representation. It is my hope, and, 1 Mink, not an unreasonable one, that this responsibility, together with certain other measures

which