CO537-6046 — Page 308

an effective safeguard.

On the other sort of issue, however, there would surely be great reluctance to risk alienating the whole local community, both Chinese and European, by using reserve powers in a matter not of vital importance to the Colony; in these circumstances the value of such powers is obviously doubtful. If we are going to give the Unofficials any real power this is an implication which must be faced whether we agree to the majority proposed or reduce it to something narrower makes little odds. The alternatives seem to be to refuse or delay the introduction of an unofficial majority or to safeguard the official position by making certain that the 3 Nominated non-Chinese Members are persons who will in all circumstances support the Government. But I doubt whether at this stage we can retrace the steps already taken, however hesitantly in the direction of constitutional reform and certainly the Governor has given us no reason to think that he would support any such move.

2

BR

(R. E. Radford.)

30/3/1950.

Schmiattached

Grafommandy

Mr. Sidebotham.

Mr. Paskin has been very busy with the Air Lines dispute in Hong Kong and as he is unlikely to be able to deal with these papers before the Easter holidays I have retained them for you.

You will see from (10) that the Governor wishes that the Constitution question to be dealt' with with all reasonable speed. Further action is now required on the lines proposed in your minute of 1/3 and Mr. Paskin's minute of 2/3 i.e. consideration of the reserve powers issue.

I agree with Mr. Radford's appreciation of the situation. On any vital issue affecting the British connection in Hong Kong I think the voting would go in favour of Government for the reasons given in paragraph 40 of the despatch at (58) on the '49 file. On domestic or financial issues the voting might well go against the Government.

we have had two cases recently when the Government may have been defeated if there had been an unofficial

X majority. (a) Hong Kong telegram No. 252 of the

X

10th March when the unofficial members informed the Colonial Secretary and Financial Secretary that they would vote solidly against the Appropriation Bill until the War office agreed to pay satisfactory compensation for requisitioned property and (b) Hong Kong telegram No. 335 of the 30th March in which the Governor stated that if the proposal to increase the standard rate of earnings and profits tax from 10% to 15% was pressed, opposition from the unofficial members would almost certainly be unanimous.

/In

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