(3) Defence: Responsibility for meeting:-

(a) extra military costs during confrontation;

(b) cost of border fence.

(4) Finance:

Minister wishes to consider with you the

employment of your reserves over the next few years

(this has been touched upon in conversation with

Cowperthwaite).

(5) Local Government:

Minister will wish to review with you

progress made in considering recommendations of Working

Party Report.

(6) Labour matters:-

(7)

(a) staffing of Labour Department;

(b) hours of work of women and young persons;

(c) general state of industrial relations, including

protection of trade union rights, joint consultation and conciliation;

(d) report on social security.

Your plans for development of technical education:

Minister is particularly interested in suggestions advanced

by Herries for polytechnic institutions.

(8)

De-salination:

Minister would like to discuss with yoù

prospects for augmenting Hong Kong's water supplies by

this process.

(9)

Export Credit Guarantee Corporation:

Minister will wish

NOTHING TO BE WRITTEN IN THIS MARGIN

(10)

2.

to ascertain in discussion with you precisely what are

the needs of the Corporation in terms of information from

United Kingdom and posts abroad.

Transport Commission: Minister wants to explore with you

what additional powers and functions your Government may

need to assume in order to secure proper functioning of

public transport concerns in private hands.

Grateful to know as soon as possible whether there are any

additional matters which you would wish to raise.

:

3. It is now almost certain that Minister and party will be

travelling to Hong Kong via Kuala Lumpur and not via Singapore

Kuala Jumpin as originally planned. As there is no flight from Hong Kong

/which

(83247) (2) 300M 10/65 St.S.

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