CO537-2188 — Page 16

Presumably gume tarpmary contest will have

he super Grad when the

Granty on dec

gefoval

should be reserved, the Government relying on its ability in the last resort, to control the Municipality either by Order rescinding or varying the lists of services transferred, or by legislation amending the Municipal Ordinance, the Secretary of State's prior being required in the event of either course being adopted. Informed opinion has been to the effect that, within its allotted sphere, the Municipal Council should have real power and I think that we should accept as the aim the Governor's recommendation on this point, subject to the provision that if full responsibility is transferred to the Council in respect of any matter (e.g. port health administration) which is subject to any international convention, arrangements will be made to ensure that the stipulations of the convention are observed. For the time being, however, the Treasury control the expenditure of the Colony and their letter at 15 makes it clear that they would not agree to financial autonomy being given to the Council while the central Government is grant-aided. I suggest, therefore, that we should ask the Governor whether he would wish to modify his recommendation that there should be no external control of the Council so as to take account of this factor.

(ii) The Governor's proposal in paragraph 33

of his despatch that a Commission should be appointed in Hong Kong to report on the measures necessary to effect the transfer of responsibili- ties to the Council. I attach Volume I of the Hong Kong Ordinance and have flagged that under which the Commission would be appointed. The Governor suggests, and I think we should agree, since there is every advantage in associating members of the Council with responsibility for the detailed planning that will be necessary, that this Commission should include representatives of both Government and Council. If this is accepted it will be necessary therefore to bring the Council into being before the Commission can be appointed. In his letter to Mr. Hazlerigg at 68C Mr. Roberts-Wray said that the question of electoral machinery should probably be dealt with by local Ordinance which would be drafted by the legal staff in the Colony. I think that Mr. Roberts-Wray has yet seen this file. Subject to his views I suggest that in replying to 19 we should authorize the Governor to arrange for a draft Ordinance to be prepared and submitted to the Colonial Office for approval before it is laid before the Legislative Council and also for preparation of electoral registers.

1

I not

In his minute of 7.3. Mr. Mayle has suggested that these preparations, both as regards the necessary legislation and the electoral machinery, may require additional staff. We could put this suggestion to the Governor in our reply.

}

Since beginning this minute the telegram at 22 has arrived. It does not seem possible to secure the decisions on all these points in time to get off an open despatch or telegram that could be published before April 5th and it seems undesirable that the Governor's despatch

/of