TNAG-0280-FCO40-316-Visit-of-Parliamentary-under-Secretary-of-Foreign-and-Common-1970 — Page 81

Present Position

CONFIDENTIAL

in paragraph 6 above.

10.

We have been waiting for some time for the Governor

to send us his proposals for modifying the Local

Government system in the Colony in the light of the

exhaustive investigations outlined in paragraphs 4-9

above. The latest indication that we have of the

Governor's thinking on the subject is contained in

his telegram No. 457 of 10 July (copy attached).

11. We have told the Governor in reply to that telegram

that we fully agree that the first step should be the

rationalisation of the Urban Council by disentangling

it from the Central Government and making it more

efficient and more responsible. An approach whereby

•

new functions will have to be paid for out of rates

imposed by the Council seems the key to making it more

efficient. This should also help to create a sense of

responsibility, but we have told the Governor that we

think it important from this point of view that the Council

shouldbe given an adequate range of functions. We have

also told him that we see advantage in the creation of a

new authority in Tsuen Wan and we have asked him whether

paragraph 2(iii)(B) of the attached telegram is intended

të rule out such a possibility.

12. Mr. Royle will be having a meeting with the Urban

Council during his visit and it is more than likely that

the Council will express to him their resentment at the

long delay which has occurred in the formulation and

publication of the Hong Kong Government's decision

in this matter. It would accordingly be advisable for

/the.........

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CONFIDENTIAL