CO537-2188 — Page 317

(1) Audit arrangements (paragraph 36).

My view is that the audit of the Municipality

accounts should be carried out by the Colonial

Audit Department.

(k) ..

Transfer to the Municipality of movable

and immovable property (paragraphs 37 and 38).

I 1

I should be glad to be consulted further on the

question of the terms on which property should be

transferred or leased to the Municipality when

details of such property are available, In

deciding upon the terms, regard will have to be

paid to the Colony's financial position at the time

and to the question whether any replacements will

be necessary for Central Government purposes.

(1)

Secondment of staff to the kunicirality

(paragraph 40). I agree that this question should

(m)

be referred to the Commission proposed in paragraph 33

of Sir Mark Young's despatch, but it will be

necessary to consider very carefully whether,

without prejudice to the interests of the holders,

the posts of seconded officers should be retained

on the Colonial Establishment once the duties of

those posts have been transferred to the Municipality.

Secondment of an experienced Town Clerk

(paragraph 41). As you will be aware, Sir Mark Young

subsequently suggested, after further consideration,

that steps should be taken to select and engage an

experienced Town Clerk from the United Kingdom for

a period of approximately two years to supervise

the establishment of the Municipal Government in

Hong Kong I agree with this proposal, and

enquiries are now being made for a suitable officer.

(n) external control over the affairs of the

Municipality (paragraph 42). The question whether

or not the affairs of the Municipal Council should be