TNAG-0316-FCO40-352-Reform-of-local-government-of-Hong-Kong-1971 — Page 89

CONFIDENTIAL

remove officials from the Council (sub-paragraph (j)) the effect would be (at least in theory) to clip the Council's wings very

substantially in this respect. One likely result would be to

encourage the Council to take even greater advantage of its annual conventional debate (see sub-paragraph (m)) to attack

the Government. Adoption of these proposals would make it that

much more important to continue attempts to broaden the basis

of representation in the Legislative Council.

New Licensing Duties:

(b).

This paragraph lists the additional functions to be

given to the Council. These additions are few in number and of no great import. We had been hoping that the Governor would find it possible to give the Council additional functions sufficient to generate a sense of responsibility, but these proposals are unlikely to achieve that object, especially when compared with the additional powers sought by the Council itself (see sub-

paragraph (c)).

Finance:

(f). This sub-paragraph contains by far the most important of the proposals and the matter is spelt out in greater detail

The effect would be to place in paragraph 9 of the memorandum.

upon the Council (which would consist entirely of Unofficial Members) the onus of raising any funds required for new functions by additional rates to be imposed by the Council or (so far as capital expenditure is concerned by raising loans on the open market. This approach presents the best hope of making the

Council more responsible and more efficient.

5.

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