CO537-2188 — Page 14

21. Foreign Office 22. from thong Key

23. From

-F2990/376/10 Secret Lal $522 Jfice (40 sta 14)

17, 18, 20 and 21 can be put by.

Y-3-47.

24.3.47 27.3.47,

In 19 the Governor comments on the eight points of detail which we raised with him in our telegram at 4. These points are referred to below by the same letters as are used in the outward and inward telegram.o 4€ 19,

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(a) On the question of the proportion of Chinese,

the Governor agrees with the view expressed in 4 that the possibility of altering the present division of seats (which is 50/50) as between Chinese and non-Chinese should be kept under review, but urges that the

intention to undertake this review should not be made public. I think we should agree for the reasons which the Governor gives.

(b) The Governor's objections to using nomination

as a means of securing membership for those American and non-British Europeans who would not qualify for the period of residence required for non-British Chinese are convincing.

If the y are accepted, the alternative lies between recognizing a different racial qualification for American and non-British Europeans from that required for non-British Chinese, with the possible implication of racial discrmination (although the Governor discounts this) and between increasing the period of residential qualification required for American and non- British Europeans from one year to six in the case of electors and from one year to 10 in the case of Councillors. The objection to the second alternative is that the Council might be deprived of the services of useful members, but on the other hand, if as suggested in (a) above, the number of Chinese members is increased in the future, the need for non-Chinese members will be proportionately less. I suggest that the period of residence required of American and non-British Europeans should be extended so as to bring it into line with that required of non-British Chinese as regards qualification for voting, but that in the case of American and non-British Europeans the period of residence required for membership of the Council might be six years (as for voting) keeping the 10

/year