TNAG-0316-FCO40-352-Reform-of-local-government-of-Hong-Kong-1971 — Page 86

CONFIDENTIAL

(a)

F

(e)

an Annex C detailing the existing functions of the

Urban Council and the changes now proposed, and

an Annex D setting out the proposed new financing

arrangements.

4. We have long been aware of the Governor's view (which we

share) that there must be a gradual and cautious approach to

this matter. This is dictated by the political considerations

involved which are clearly presented in the covering memorandum.

A year ago the Governor informed us of his conclusion "that the

best that can be done for the present is to bring some order

into the present Urban Council and straighten out its more

obviously peculiar features as a local authority. What I am

aiming at therefore as a first step is a process of disentangling

it from the central Government and making it stand as much as

possible on its own feet, with its responsibilities and powers

properly defined".

5. We informed the Governor at the time of our agreement with

this approach which is clearly reflected in the proposals now

put forward.

6. The memorandum (paragraph 4) makes it clear that the

Governor does not regard the "local authority" concept as suitable

in Hong Kong's particular circumstances; that he favours the

existing system of "Government by discussion" through a network

of advisory bodies; and that it would be preferable to offer

the people of Hong Kong an opportunity of participating to a

greater degree in Government processes by developing these

bodies on a Colony-wide functional basis rather than by investing

additional powers in the Urban Council.

2.

CONFIDENT IAL

17.