CO537-2188 — Page 12

I took note of all these points on which Mr. Helsby promised to let me have a letter as soon as possible. In the meantime, we may go ahead with the statement, so far as the Treasury is concerned.

I have now sent a copy of the draft in its latest form to Mr. Kitson, warning him that the Prime Minister has yet to approve the Secretary of State's proposal to make the statement on Wednesday.

16. No. 10. Downing St.

15.

10.

L.M. Helsby - "vay. -

Miss Ruston

4.3.47

3.3.47.

3-3-47

As you know, the Prime Minister approved and the statement was duly made on Wednesday, 5th March, unfortunately in the form of a written reply.

We must now consider the questions on which a further telegram has been promised (paragraph 7 of No.4), namely, (a) the Governor's recommendation that no power either of veto or of certification should be reserved to the Governor or the Governor-in-Council, and that the regulations, rules and byelaws of the Council shall not be subject to the provisions mentioned in the Governor's despatch, and (b) the suggestion in paragraph 33 of the despatch that a Commission should be appointed under the Commissioner's Powers Ordinance, 1886, to institute and conduct an enquiry and to report on the measures necessary to effect the transfer of responsibi- lities and duties to the Municipality. We must give some consideration here to the further question (c) of the arrangements to be made, including the preparation of the necessary legislation, for the creation of the Municipality and the transfer to it of the powers and duties which it is to assume at the outset. These matters will not be dealt with by the Commission, if as I think we should we accept) the Governor's view in paragraph 33 of the despatch.

In dealing with all three questions we must

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keep in mind tend that the

Arrangements

that