5. The Governor shares the view that gradual development is necessa in this field; it is known also that he lays great emphasis on full consultation with all interests in the areas affected by any proposal: prior to their introduction. With this end in view he envisaged from the outset in 1966 the introduction of broad enabling legislatio on lines widely adopted throughout our former African territories. This would give the Governor-in-Council powers to establish local authorities for specific areas after processos of local consultation; to allocate such functions and powers to these authorities as would be appropriate having regard to their sizo, experience and capacity to undertake them; and to withdraw functions and powers having regard to their performance. So far as we know, this type of legislation remains the Governor's objective. In our view it should provide the necessary flexibility for the gradual development of a local authority system.
6. As to the extent of the changes to be made in the first instance, he has emphasised the need for caution in the aftermath of communi st confrontation, The dangers are that in present circumstances :-
(a) China may react to local government changes (although we
do not think this likely);
(b) local communists may seek to control or disrupt local
authorities with a large number, if not a majority, of elected membors (they made an attempt to gain control of the New Territories Advisory Council in the late fiftics). The 1967 Working Party report was not intended as a blueprint for immediate action; its main purpose was to examine the possible lines of development. The Dickinson report on the other hand contains proposals for the first instalment of reorganisation, taking account of public reaction to the Working Party report and the implications of confrontation. Consideration in Hong Kong is now likely to be centred on the extent to which the Dickinson proposals should be amended in the light of the comments thereon by the Urban Council and the Heung Yee Kuk (which we understand are now available), The proposals can be broadly divided into the following five categories :-
/ (1).
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