CO537-2188 — Page 512

widening of basis of the Legislative Council. Thus the lack of enthusiasm which I reported is not less but more marked towards H.M.C. proposal for a popularly elected Legislative Council than for Municipality, and it would be regarded here as a mistake and a misunderstanding of the situation if it were used as an argument in favour of the former proposal,

10. The Chinese Protestant Churches were the only representatives which suggested that an elected Municipal Council should have vested in it the functions of the Legislative Council, and this body qualified its suggestion by stating that it regarded this as an ultimate aim and recognised the difficulties.

11.. No other body went further in its proposal than what I have suggested in paragraphs 44 and 45 of my despatch No. 145, and this still represents, in my judgment, the proper degree of constitutional change so far as the composition of the Legislative Council is concerned.

12. Other points which arise in connection with the argument drawn from lack of enthusiasm are

(i) Reference the facade in your paragraph 4. I feel that the present proposals are recognised as genuine attempt to give the inhabitants an effective share in administration, whereas proposal to liberalise the Central Government in the manner suggested e.g. by Bishop Hall, whose views I think you know, would be much more likely to be criticised by responsible and informed opinion as unrealistic.

(ii) Kuomintang influence. I agree of course with the view that this is a strong argument in favour of the Municipal Council proposal. The contrary argument, mentioned in your paragraph 5, that the potentially subversive elements, if admitted to the Legislative Council, would be more controllable there, owing to the presence of official members, than in a wholly unofficial Municipal Council is not valid, The prominence of aliens would enhance, while the presence on it of officials could do little if anything to diminish, the volume and damaging effects or anti-British utterances inspired by the Kuomintang.

/13.