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CONFIDENTIAL
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URBCO had some autonomy in financial matters through receipt of a percentage of rates. However, it would be dishonest to expand the franchise of URBCO since it would produce public expectations which could not be fulfilled. Mr Blaker asked whether the problem of a possible confrontation of pro-Peking and pro-Taiwan supporters in an URBCO with an extended franchise was a serious problem. The Governor said that this was a point which could be used for public presentation but the main ob- jection was the danger of inspiring further demands.
A Commission of Enquiry or a Step-by-Step Approach?
8.
Mr Blaker suggested that the Governor should set up an independent enquiry into local government in Hong Kong which could be publicly announced. Its terms of reference could be devised to exclude electoral reform at the higher level and to avoid causing offence to Peking. If Ministers were to deal with parliamentary pressure it was important for them to demon- strate that the subject was being taken seriously. The Governor said that he would much prefer a pragmatic step-by-step approach in which action was taken in one area after another, with a public statement as each move was made. What he had in mind was to start with the introduction of some electoral element into the Advisory Board for Tsuen Wan which could later be copied in other parts of the New Territories.
9.
Mr Blaker said that the announcement of a commission of enquiry would go down much better in Parliament.
It would have the advantage of the appearance of impartiality rather than of government direction. It would be difficult for Ministers to say definitely that no moves were to be made on the Urban Council if they could not match this with a state- ment of intention about local government in general. The Governor suggested that Ministers could refer to the Hong Kong Government's intention to experiment in new ways of achieving more public participation in local government and would be able to refer to action in Tsuen Wan as soon as this was taken. Mr Blaker asked whether it could be made clear that the Governor's intentions in this field included the urban areas as well as the New Territories. The Governor said that it would be very difficult to move too fast. We were still at a very early stage. He repeated his objection to the idea of a commission of enquiry.
Conclusions
10.
Mr Blaker asked the Governor to consider carefully whether there was any scope for more electoral development taking account particularly of parliamentary pressure and the need to a partisan clash in Parliament. There was no very great urgency. Ministers could for some months continue to say that the matter was under consideration.
CONFIDENTIAL
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