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chairman of the Markets Select Committee, he did his best to upset the market programme which my predecessor and I had laid out.

MR. BERNACCHI:-Mr. Chairman, on a point of order, I do not think Mr. SALES has any right to stand up on a point of clarification. (Laughter).

MR. CHEONG-LEEN: -Mr. Chairman, Mr. SALES is out of order as usual, but we will hear him. As regards constitutional advance, Mr. Chairman, Members are aware that the Reform Club-Civic Association Coalition will expire in the middle of next year . . . January next year, I beg your pardon. (Laughter).

•

MR. SALES: -Mr. Chairman, the keyword is "expire". (Laughter).

MR. CHEONG-LEEN:-But I must make it very clear, Mr. Chairman, that this decision was taken without the benefit of Mr. WATSON's well- intentioned advice on participation. It is also common knowledge that for the coming March 1965 Election, both sides hope to put up a full slate of six candidates each. As to whether any of the three newly- formed political parties will put up candidates, I must confess my ignorance.

MR. SALES: -Mr. Chairman, the Appointed Members, however, may; I said that last time. (Laughter).

MR. CHEONG-LEEN:-It is up to the Appointed Members to prove their point at the right time, Mr. Chairman. As far as the Civic Associa- tion is concerned, the principal reason why the Coalition Agreement was not renewed was because our General Committee felt that the Colonial Office in London had become more flexible and progressive in regard to constitutional advance for Hong Kong. The Coalition Agreement had achieved its purpose and there was no point in renewing it. It was not a marriage as suggested by a local English daily, nor was it ever intended to be so. But like all good things, Mr. Chairman, it had to come to an end. With the recent change in Government in the United Kingdom, this progressive attitude of the Colonial Office has now gained credence and respectability even amongst some of the more dyed-in-the-wool senior Civil Servants in Hong Kong. (Laughter).

As I have pointed out on several occasions in the past, Sir, my colleagues and I are committed to steady and orderly constitutional advance for Hong Kong. If the people of Hong Kong are to, one day, acquire the status of Hong Kong citizenship, it is vital that we now set about to evolve out of our present colonial status into a new and enlightened democratic society. The Urban Council is an embryo House of Representatives of Hong Kong's nearly four million popula- tion. Its elected members and, of late, its appointed members who

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quite often speak in differing voices on the subject of markets, have always spoken up for the common people, most of the time on sub- jects which have nothing to do with the Urban Council, which, as we all know, has a limited and narrow sphere of responsibility.

In recent months I have often been asked to express my views on the future of Hong Kong. We know that certain Communist or neutral countries have been urging the early return of Hong Kong by Great Britain to the People's Republic of China. We also have the impression that the People's Republic of China is in no great hurry to negotiate over the return of Hong Kong because of the many economic and other advantages that Hong Kong provides. There is more than a grain of truth in the description of "Switzerland of Asia” which The Economist weekly magazine last month gave to Hong Kong. As a haven of investment, stability and enterprise, sitting geographically between Nationalist China and Communist China, Hong Kong exists because it is politically neutral and economically friendly to all. That is why my colleagues and I are not particularly wrought up about inde- pendence or internal self-government for Hong Kong at this time.

We are more concerned about the bread-and-butter issues that affect the livelihood of the people, such as jobs and industrial expan- sion; housing and slum clearance; education and juvenile delinquency; traffic problems; social welfare and medical services.

With this in mind, we will continue to press for the widening of the scope and responsibility of the Urban Council in matters such as public transport, fire services, social welfare, education and medical facilities.

We think too that the name of the Urban Council should now be changed to that of "Municipal Council" and that Government should plan for a separate municipal building as one of its projects on the Central Reclamation Scheme.

We will also press for the Urban Council elected side to have their representatives sitting in the Legislative Council and in Executive Council.

Ultimately, we seek to strengthen individual liberty and the demo- cratic way of life in Hong Kong. The time will come when this preparation will stand us in good stead to meet whatever challenges, political or otherwise, that may be thrust upon us from the outside world.

It is well to remember that expatriate Civil Servants serving in Hong Kong are here no longer as permanent "colonial masters". They are here as overseas members of the British Civil Service, which is well-known throughout the world for its integrity and honesty. We