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Hong Kong affairs from Eastern to the Pacific Department to study the draft Bills in detail. They have been mentioned to Mr. McPetrie, but he has not yet seen them. I was surprised to see in the Governor's address to the Legislative Council on the 19th March (see 7) that he was awaiting the Secretary of State's comments on the draft Bills (I could have understood it if he had said he was waiting for the Secretary of State's further despatch referred to above). (122) on the 1947 file Part II (the only communication we have about these draft Bills) suggested to Mr. Mayle and to me that the drafts were sent for preliminary information, not for specific comment, at this stage, and that we might expect amended drafts after our further despatch had been received and after the drafts had been considered in the Executive Council..

5. I have discussed the position with Mr. McPetrie and we suggest that we should now send Hong Kong a savingram on the lines of the draft herewith to try and clarify the situation.

6. When this has gone (if it is approved) the file should go to Mr. McPetrie for a preliminary examination of the drafts to see (as Mr. Mayle suggested) if there are any important legal points to be raised.

7. Mr. Mayle has himself recorded a note (in the file cover with the draft Bills) commenting on the most important of the draft Bills viz. the Municipal Council Ordinance. It will be seen that some of the points he raises are Treasury points which it would really only complicate matters to discuss with the Treasury before we have the later drafts from Hong Kong amended in the light of (5):

8. I note in passing that the draft clause referred to in para. 1 of (122) on the 1947 file part 2 (the draft is in the separate cover with the draft Bills), intended to provide for "default powers", is not in line with para. 4 (ii) (b) of (5) in that it does not provide that the Secretary of state's prior approval shall be necessary in the case of complete supersession of the Municipal Council.

9. I do not burden this already bulky pouch by including further files but I note for information that in despatch No.255 of the 8th August 1947 on Leg. Co. file 54243/47, the Secretary of State informed the Governor that, since provision is to be made for the Municipal Council to nominate two of the unofficial members of the Legislative Council, it would be preferable for the Municipal Council to be estab- bished before the constitution of the

Legislative Council is amended. He added,

however,