CO537-2188 — Page 73

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5.

When I mentioned Mr. Mitchell's visit to you on Saturday, you said 'you would be prepared to see him if he/wished. Mr. Mitchell said he was grateful for your offer to see him, but did not wish to take up your time to go over the same ground as he and I had already covered, though he would mention it to his Chairman (Mr. Keswick) in case the latter still felt it necessary that the Association should press their representations.

He thought this, however, would be unlikely.

6.

I told Mr. Mitchell, confidentially, that we hope to arrange publication of the despatches on Wednesday and Thursday of this week.

7. I think we have succeeded in persuading the China Association of the necessity, thoughtnot of the wisdom, of avoiding a set-up on the Municipal Council which would result in a permanent European majority. I think it quite likely that they will now cease to press for the Municipal Council to be given the widest possible powers, and that they will instead wish the Central Government to remain the really powerful body. The danger is that they may not lend the Municipal Council the full support it will undoubtedly require to be a success. Their attitude may be taken as representative of that of the European business community in Hong Kong, so that it is very much to be hoped that the China Association will give the local business community the lead which, indicated above, Mr. Mitchell hoped his Association would.

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