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them the pride of belonging to Hong Kong-sentiments which are both fundamental and essential for our internal stability and economic progress.

His Excellency the Governor in his budget speech earlier this year hinted the need for some change in local government structure at Urban Council level to give the people more say in local affairs.

The Ad Hoc Committee has proposed setting up a number of District Councils to take charge of matters relating to local govern- ment and internal administration, all responsible to and co-ordinated by a Central Local Government Authority to be known as the Mu- nicipal Assembly or Greater Hong Kong Council. These proposals would give wide local responsibilities to Hong Kong people. At the same time they reserve adequate control by the Legislative and Executive Councils particularly on matters of finance, internal security, industry and commerce. The scheme will very much lighten the re- sponsibilities of the over-burdened Colonial Secretariat and will help to decentralize and streamline the administrative structure.

It has been suggested in some quarters that a Municipal Assembly with centralized and co-ordinating powers would be unnecessary and all that is required is the breaking up of the present Urban Council into a number of District Councils.

I sincerely believe that if this suggestion were accepted it will be a very retrograde step and would give the impression that the British Government is following a "Divide and Rule" policy in Hong Kong.

Mr. Chairman, the Ad Hoc Committee's report is a clear blue print for the future development of local government in Hong Kong. This report and the views which have been expressed today by mem- bers, both elected and appointed, should be studied carefully by Government. We hope that the report will not be shelved like many other reports have been in the past but will be fully accepted and implemented by Government.

I support the motion.

MR. LOBO: Mr. Chairman, I would like to add my compliments to those of my colleagues on the very admirable Report of the Ad Hoc Committee regarding the possible measures relating to the future scope and operation of the Council. Whatever one's reservations might be about the advisability of certain particular aspects of the Report, there is little doubt that the overall recommendations are such as can be accepted as possible of future realization.

But while accepting the recommendations contained in the Report in principle, I am of the opinion that in some of the Report's proposed

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areas of extention and responsibility this should be a matter in which haste, if haste has to be made, should be made slowly.

The Report urges that the Council be transformed into a local municipal-type authority that will control the operations of almost all Government departments with whom the man-in-the-street comes into

contact.

Unfortunately, discussions on the subject of further development of local Government institutions in Hong Kong are often hampered by confusion, between, on the one hand, local institutional reform, and, on the other, overall constitutional or even political changes.

When one considers that this confusion afflicts those who have been resident in Hong Kong for a number of years, and who have taken a close interest in its affairs, I feel that the proposed 12-month residential qualification for district elections franchise is much too optimistic. The task of educating the public in civic responsibilities is no easy one and even in the best and most co-operative circum- stances will take time.

It is commendable that electoral participation in local Government along the lines of the newly introduced franchise is recommended as suitable for a proposed national franchise, but it is important too that attention be paid to the streamlining of the bureaucratic machine which runs our day-to-day affairs. It seems to me that very often, too much attention is paid to the subject of political reform without due con- sideration of the preparations required in the realm of Government departmental machinery and of the educating of the public.

It is no secret in Hong Kong that Government suffers from a severe administrative bottleneck through the present system that the affairs of over 30 Government Departments are being channelled through the Secretariat. In terms of sheer paper-work alone, it is obvious that this is more than any Department can be expected to cope with effectively and quickly.

If this Report were to be accepted in toto, Hong Kong would obtain a significant measure of internal self-government, since large areas of the Colonial administration would come under the policy and financial control of a largely elected body.

It is apparent from official statements made in the past that Government believes our local Government institutions should be ex- panded as part of an effort to keep pace with the advancing aspirations of the citizens of Hong Kong. But we must be realistic about the lack of professional competence in several of the Report's proposed areas of expansion of responsibility.