CO537-3703 — Page 52

-545

R.03

DRAFT DESPATCH TO GOVERNOR, HONG KONG.

FOR TREASURY CONCURRAGE

Coury

24

No87

Sir,

Please send a

send a copay

to Mr. Pitblado Tsy with dr. Rayle's comps. - recive to Dr. Mayle

( MAR 1948

Establishment of Municipal Council

in Hong Kong.

119. 5

In my despatch No.222 of 3rd July 1947 I indicated

in paragraph 3(1) that a measure of external control

over the Municipal finances would be necessary in certain

Ι respects, and, in paragraph 3(o) reserved for further

examination the general question of whether or not the

affairs of the Municipal Council should be subject to

any form of external control.

2. I have now given the subject further consideration,

in the light of practice in the United Kingdom and in

other Colonies, and my provisional conclusions are as

follows. They are, however, for the present subject to

any comments you may have to offer.

3. I have already sent you copies of (1) and official

note prepared in the Ministry of Health dealing with the

administrative control by central Government Departmenta —

of local authorities in England and Wales, (ii) a

summary note on powers of control of Municipal bodies by

the central Government in the United Kingdom and some of

the Colonies and (iii) copies of the Colonial enactments

referred to in (11).

4. (1) Financial powers of the Municipal Council.

In my despatch No.222 I indicated that it would be

necessary to make specific provision for the application

to the municipal finances of that measure of external

control which it is necessary to exercise over the

Colony's finances whilst it is in receipt of financial

assistance from His Majesty's Government and for the

carrying out of the Colonial Government's responsibility

in respect of any scheme under the Colonial Development

and