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(vi) I understand the Hong Kong Government's proposals for

increasing its adherence to ILO Conventions

(the Governor's paragraph 39) have just been received but we have not yet had a chance to study the document.

Social Security

9.

The Governor makes the case for not considering contributory programmes in paragraphs 11-14 which are based partly on impressions. of what Hong Kong employees want and partly on a misunderstanding of the purposes of social security. We assume that political uncertainties might militate against compulsory social security in terms of retirement pensions; but many social security benefits are immediate, not long term e.g. payments for unemployment, sickness and maternity. There is no evidence that these matters are under serious consideration in Hong Kong; and no evidence that outside advice has been sought.

Relations between Britain and Hong Kong

10.

The Governor refers to the useful role in promoting better understanding played by important visits to Hong Kong (paragraph 49); and by his own visits to London (paragraph 15). Both are true up to a point but some visitors have come away with a feeling not of the underlying goodwill in Hong Kong for Britain but rather the reverse. (Sir Patrick Reilly referred to the atmosphere as the most anti-British

he could recall.) And the planning paper argues that too much burden should not be placed on the Governor (and by implication on his regular visits here) but that there should be a broader exchange of views between Hong Kong and British officials partly to relieve the burden on the Governor.

Omissions from the Planning Paper

11.

The Governor makes a number of points about progress in Hong Kong which should be included in the planning paper in the form shown to the Secretary of State. The ones that immediately spring to mind are progress in combating corruption; in increasing the efficiency of the police force; in providing places at technical institutes and the universities; and in the provision of amenities.

10 March 1976

Mr Larmour

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PL O'Keeffe

Hong Kong & Indian Ocean Dept.

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