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revised arrangements of a more liberal kind. Although the Hong Kong Government are already having to provide extra funds to meet an increase in applications for public assistance under the present rules, they have also made contingency plans to expand the Public Assistance Scheme to enable them to cope with "emergency" conditions (ExCo minutes of 21 January). We are asking the Governor for further details of these plans.
5. The other points covered in Hong Kong's telegram are the pressure on the administration of the public assistance scheme, and the lack of certainty about the unemployment figures in Hong Kong. I will submit on the first question in proposing a reply to Lord Brockway.
6. The reason for the lack of precise figures of unemployment arises from the fact that there are no unemployment benefits in Hong Kong. It has been the experience throughout the world that, in the absence of benefits, there is no incentive to register, and bureaucratic attempts to compel registration have generally been a failure. There are five Labour Exchanges in Hong Kong, but the pattern of employment in family or neighbourhood groups gives little incentive to look outside those groups for work or for workers During 1974 there were only 8,600 job seekers through the Exchanges and only 3,361 vacancies were notified to the exchanges for filling.
7.
As the Hong Kong telegram makes clear, the actual number of unemployed or under-employed must be very much larger than that. The strain has so far been absorbed in accordance with traditional Chinese modes, largely by work sharing and by the family tradition of mutual help. The people of Hong Kong are also basically optimistic and prepared to wait for better times. Moreover, the Chinese Government and therefore the Communist unions are adopting a clear policy of restraint. Lord Goronwy-Roberts may like to see the article on this point by Richard Hughes (whom he met in Hong Kong) in the Times of 13 February. The article also covers the question of democratisation.
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