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the constitution, it was not possible to move towards an elected Government. Appointment of Unofficial Members in their personal capacity should be continued. But members must represent the
whole population of Hong Kong, and not sectional interests. membership should be increased and broadened. Progress would not be easy, but the Mutual Aid Committees might help to throw
up suitable people.
3.
The
On the defence contribution, Hong Kong was committed to
a huge social programme involving vast increases in expenditure on housing, medicine, education and social welfare. This had the full support of UMELCO and it was very important to continue it. A large-scale increase in the defence contribution could only be at the expense of the social programmes, and would
seriously affect relations between Hong Kong and the UK. Some people might say that the tax structure was low. But there would have to be considerable increases to fulfill the social programmes.
Further increases to meet an extra defence contribution would discourage overseas investment, and this in turn would depress employment. Other countries in the area were offering all sorts
of inducement to investment.
4.
On labour legislation, UMELCO were in favour of imple- menting legislation where there were clear benefits to Hong Kong workers, and a number of measures had already been passed. But legislation on political grounds to pay lip-service to ILO conventions was most inappropriate in Hong Kong. Hong Kong's competitors paid no attention to them. In addition, discrimination against Hong Kong in the EEC was an important factor. UMELCO hoped that HMG would strongly oppose it.
5.
Finally, there had been criticisms in the press and Parliament in UK of Hong Kong: some were justified, and some not,
but all made headlines in Hong Kong. This lead to a feeling
that Hong Kong as a Colony was not wanted. He asked the Minister
/to
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