TNAG-0279-FCO40-315-Visit-of-Secretary-of-State-for-Foreign-and-Commonwealth-Aff-1970 — Page 44

CONFIDENTIAL

in endently, to work out a possible alternative to large-scale

changes, based on improving the existing institutions:

this

officer completed his report in March 1968. His recommendations

have been the subject of further consultation with interested bodies.

8. When Lord Shepherd visited the Colony in June, 1969, he held

discussions on this subject with the Urban Council, with the

unofficial members of Executive and Legislative Councils and with

the Governor and officials. In general the Minister made it clear

that he favoured a gradual and cautious approach to the development

of a local authority system: and in final discussions with the

Minister the Governor undertook to formulate proposals as soon as

possible. His proposals are now awaited. We understand that

consideration will shortly be given to these in Executive Council.

The Urban Council's performance or its responsibilities has

not been impressive and there must be serious doubt about the

competence and efficiency of other local authorities that may be

established. In addition there is the danger that, in conditions

of electoral apathy, any predominantly elected body might fall under communist control (as did the Heung Yee Kuk, which was suspended

for this reason in 1958/59).

Accordingly, we think it likely that

the Governor's proposals will be confined to a modest increase in

the functions and powers of the Urban Council, together with a

measure of financial responsibility, and for the rest will do no

more than envisage the establishment of urban councils with

similar functions and responsibilities for the growing urban

concentrations in the New Territories.

CONFIDENTIAL

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