CO537-2188 — Page 403

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criticism outside Hong Kong that this action was inconsistent with all modern conceptions of equality of treatment and opportunity as between Europeans and Chinese and that such criticism could not adequately be met by explanation on basis of Americans and non- British Europeans concerned being birds of passage. I feel therefore that non-British Chinese community must be treated the same as non-British European and American communities in the matter of residential qualification for membership or franchise. You will no doubt consider whether period of residential qualifica- tion could not be reduced for all so as to go some way towards meeting problem of non-British Europeans and Americans.

As regards point (f), I presume that literacy qualification will debar large proportion of working classes from voting for some time to come. In view of this, and as the trade union representatives will presumably be the only representatives of the pre- ponderating working classes until literacy qualification and jury qualification (as to which, however, see below) become more common among those classes, I hope that on reflection you will be prepared to agree to my suggestio that the trade unions should be given at least three of the ten nomination seats.

5. On further consideration, I feel considerable doubts as to whether the qualifications for the franchise as they stand, are not too restrictive. The literacy condition is unexceptionable but the inclusion of the

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