CO537-3703 — Page 42

Note prepared for word winstroval this request

Proposals for constitutional development

in Hong Kong.

J. Cast pare. J(9)

The Secretary of State last year accepted the recommendation of the Governor of Hong Kong, made after consultation with all communities and all interested persons in Hong Kong, that the most suitable method of constitutional development there would be by means of the establishment of a Municipal Council which would gradually assume as many of the functions of the Central Government as can be appropriately assigned to it. At the same time it was agreed that the constitution of the Legislative Council should be modified so as to give a more representative character to its unofficial element and to increase the actual proportion of the unofficials as compared with official members.

The Municipal Council is to consist of 30 members, 20 of them directly elected, the remaining ten nominated by certain unofficial bodies including Trade Unions. The Legislative Council consists at present of nine official members (excluding the Governor) and eight unofficial members. As reconstituted it will consist of seven official members and eight unofficial members and instead of all eight unofficial members being appointed by the Governor as now, four only will be so appointed, the remaining four being nominated by unofficial bodies (two of the four by the Municipal Council).

Legislation establishing the Municipal Council is under preparation. The Secretary of Stato's despatch indicating what measures of external control (financial and otherwise) over the Municipal Council would be necessary was sent to Hong Kong on the 27th Merch.

Note for Lord Listowel's information.

Mr. Sloss recently told us that there is little enthusiasm in Hong Kong in unofficial circles (except in the Kuo-in-Tang) for the proposed Municipal Council because it is believed that its main effect will be an increase in Chinese Nationalist influence. The Kuo-min-tang will use every effort to pack the Council and will probably be successful, since non-political Chinese are unlikely to date to stand against them. 7

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