CO537-2188 — Page 476

54145/4/47 Hong Kong.

LORD FLIVY SEAL.

You my recall that in March, 1946, I showed you the draft of a statement concerning constitutional

anges in Hong Kong. You agreed with the terus of that aft and the statement was subsequently made here in the House of Commons by my predecessor, Lord Hall, anci in the Colony, by the Governor, Sir Hark Young on the 1st May.

2. The statement indicated that it was the policy of His Majesty's Government that the Constitution should be revised on a more liberal basis as soon as possible, and announced that the Governor had been instructed to examine the whole question in consultation with represen- tatives of all sections of the community. The statement mentioned one possible method of carrying out this policy, namely, the handing over of certain functions of the internal administration at present exercised by the Central Gover.ment, to a Municipal Council, constituted on a fully representative basis.

3. The Governor of Hong Kong, after full consultation with representatives of all sections of the community, has recommended

(a)

the creation of a Hunicipal Council constituted on a fully representative basis which will rudually assume as many of the present functions of the Central Government as can appropriately be assigned to it, and

(b) certain mouifications in the constitution or the cislative Council for the purpose of securing in that body a more direct and a proportionately increased representation of the unofficial community.