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though with somewhat reduced powers and functions and a greater degroo of supervision and control by Central Government. Under their proposals a Municipal Council would be sot up for the urban area of Hong Kong and ono, or possibly two, for Kowloon and Now Kowloon. An Urban District Council is suggosted for Tsuen Wan but apart from this the Working Party saw no good reason for changes in the Now Territorios Administration which was generally regarded as satisfactory by the inhabitants. All the new councils would havo a majority of nombors elected on a liberal franchise but a systom of appointod members would be retained to guard against the possible future of the cloctive principle. The report is not unanimous, one member being in favour of a single authority for Hong Kong and Kowloon and three members suggesting an intcrin stage of Rogional Consultative Councils to educate
the public in domocratic procedures.
7. At the same time, an ad hoc Committee of Unofficial Members of the Urban Council has produced its om report on the future scope and operation of the Urban Council. This report was accoptod by the Urban Council in Octobor 1966 (officials abstaining). It proposes that thore should be a "Greater Hong Kong Council" or "Municipal Assembly" covoring the whole of the Colony which should have administrative responsibility for "strictly internal matters" other than security. This Council would be supported by subordinato District Councils established initially for Hong Kong, Kowloon and the New Territorics. The roport is in essence another bid by the Urban Council unofficials to oxtond the Council's authority and it bears many signs of over hasty proparation. Pross comment on its publication was critical particularly in regard to the cost and complications of the proposals.
8. The Governor has emphasised that the devolopment of Local Government should in his opinion be approached with caution; there is vory littlo prossuro for change particularly in the Now Torritorios and no agreement at this time as how the nood may bost be mot. Although it is considered unlikely that the Chinese Government will roact unfavourably towards a ro- organisation of local Government we must procood carefully if suspicion of a "transfer of power" is not to be aroused, In addition, in Hong Kong, thoro is unfortunatoly a real danger from corruption. We have accepted the Governor's view that the Urban Council should not be allowed to spread its
The Council's authority into the now urban arcas in the New Territorios. aspirations in this rospect are opposed by tho inhabitants of the arcas concerned. Moreover, Hong Kong is too small a Colony to accommodato both a Logislativo Council and a major local governont authority. The Urban Council's dissatisfaction with its present role might perhaps be met by widening its responsibilities within its prosent area though this issuc is one which the Governor proposes to consider after a now goncral pattorn for local government has omorgod.
Hong Kong Department,
October, 1967.
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