Private Secretary
HONG KONG
SECRET
P.A
Jeels
1. A defensible policy on Hong Kong must set out the ways in which a discernible acceleration in progress in the Colony may be made.
2. The Planning Paper represents, I think, the minimum which Ministers could defend. The policy in no sense represents an egalitarian solution; it offers a "safety net" for the worst off in a basically unreconstructed capitalist society. Because of the Chinese dimension no concessions are made to democratisation. An (anomalous) British garrison is to remain in the colony.
3. I put prime emphasis on labour legislation, since only the TUC of those who press us on this subject have not only an altruistic interest in the people of Hong Kong but also a direct interest in their members' jobs. Here, the paper seems to be along the right lines. However, I do not believe that the TUC will be satisfied unless there is a real prospect of progress towards a minimum wage. The Governor does not believe that this could be introduced and enforced in the near future: but we might seek some rather more concrete methods than are embodied in the Planning Paper of working towards it.
4. On public expenditure, the paper seems to be along the right lines, though we shall have to monitor the balance between means-tested and non-means tested benefits. Public assistance for able-bodied men under 55 may be a first step, but unemployment benefit as an entitlement may be needed at some stage.
5. On the membership of LegCo, and while recognising the Governor's difficulties, the appointment of a Trades Unionist seems to me to be presentationally an absolute necessity.
6.
Subject to these points, I am convinced that the policy set out in the Planning Paper is right. It will not completely satisfy all our critics, but it will represent a position which Ministers can defend with a clear conscience.
David Lipsey
David Lipsey
19 July 1976
PS/Lord Goronwy-Roberts Mr Larmour
c.c.
PS/Mr Rowlands
PS/Mr Luard
Mr Cortazzi Mr Male
OLA
Economists Planning Staff
PS/PUS
FED
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SECRET
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