CO537-6046 — Page 342

f

I need not, I think, add greatly to these minutes. The main points of the letter at (52) are brought out in Mr. Anderson's minute of 15.11.

At (53) will be found a comparison of the voting strength which emerges as a result of (52) with that shown at 'X' of Sir Charles Jeffries' minute to the Secretary of State of 29.10. The difference lies in the abandonment of the suggestion advanced by Sir A. Morse for the inclusion of an additional Unofficial Member secured by indirect election by the Social Welfare Association. This is apparently full of practical difficulties and the proposal now endorsed by the Executive Council is that the Governor should nominate a member instead.

In view of the strong objections mentioned in paragraph 2 of (52) to Sir A. Morse's proposal, I feel that it cannot be pressed. The additional and extra nominated member not being indirectly elected will enable the Governor to dispense with one of his votes and he prefers to retain his casting vote. I think we should agree to this as also to the action in two stages in relation to the extension of the franchise of the Urban District Council, and to the proposal that only Elected Members of the Urban District Council should qualify for election to the Legislature.

653

Mr. Anderson has added a useful table at my suggestion, indicating the pattern of events` after the publication of our formal despatch.

I agree that we should now clear the draft with the Foreign Office, Ministry of Defence, Treasury and Common- wealth Relations Office, and, when this has been done, submit it to the Secretary of State for final approval.

[

#

}

17. 11. 50.

1

I agree with Mr. Sidebotham that the Secretary of State need have no hesitation in accepting the relatively minor changes now proposed in the arrangements which were discussed while Sir A. Grantham was here, and that accordingly the despatch should issue as in the revised draft annexed to No. 52.

hovern

Since the (undeclared) intention is that, if and when proposals emerge from Hong Kong on the lines of those discussed semi-officially, they will be accepted by the Secretary of State, I also agree that the situation should be explained to the Foreign Office, Ministry of Defence and. Commonwealth Relations Office, and their concurrence sought.

As regards the Treasury, I am not aware of any general convention that they have to be consulted even when, in a case like this, the proposal is to create an unofficial majority in the Legislative Council which (nominally at any rate) will mean that financial proposals which are unacceptable to the Legislative Council could in future. only be achieved by the use of the Governor's reserve power. But in this particular case, I understand from Mr. Sidebotham that, apart from the general background of our relations with the Treasury over Hong Kong finance, there are matters

/ shortly

}