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terms it will be necessary to take into account financial position of Colony and question whether any replacements will be necessary for Central Government purposes. I suggest that the reference to the usual condition regarding the duration of the term of the lease in the case of the New Territories might be amplified to make it quite clear that this relates to the condition which is attached by reason of the New Territories being held on lease, and thus avoiding the possibility of any misunderstanding that the reference is to the discussions with the Chinese on the New Territories, which were mooted in 1943.
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XV.
Reply will agree with your view that question raised in paragraph 40 might also be referred to Commission. It will however add that it will be necessary to consider very carefully whether, without prejudice to the interests of the holders, the posts of seconded officers ought to be retained on Colonial Establishment once their duties have been delegated to Municipality. Reply will state that question raised in paragraph 41 will be dealt with separately.
XVI. My comments on paragraph 42 will be on the following lines:-
The matters raised in this paragraph, which relates to the question of external control of the Municipality, give rise to a number of. important legal, financial and policy points on which I will
communicate with you separately. Among other things, it will be necessary to ensure that while the Colony
is
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