CONFIDENTIAL
30
37)
Mr Male
Mr Cortazzi
rtazzi
PS/Lord Goronwy-Roberts
HONG KONG:
M. Custway
M..
شکوند
川
M. Mm. P
ú/10.
GOVERNOR'S STATEMENT TO THE LEGISLATIVE COUNCIL: CRITERIA FOR EXTENDED PUBLIC ASSISTANCE
1.
The Governor of Hong Kong telephoned this afternoon on receiving Flag A Lord Goronwy-Robert's reply (photocopy attached) to his telegram Flag B No 1002. He explained that while, as we had understood, he would
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not mention the proposed criteria of eligibility for public assistance in the case of 15-55 year old able-bodied males in his statement to the Legislative Council tomorrow, 6 October, (paragraph 2 of Lord Goronwy-Roberts' telegram and paragraph 2 of Hong Kong telegram No 1002), he expected to have to face up to questions on this point at a press briefing afterwards. The Governor said that he therefore wished us to know more about his thinking as regards the criteria and to enquire further into our attitude.
The Executive
2. The Governor said that he hoped we appreciated that Hong Kong's proposed new scheme would be the only one of its kind in the area, with the exception of Japan. His primary concern was to get it started as soon as possible. It would make no real difference at present when there was full employment but it would be advisable to establish the scheme and get it working properly against the possibility of a recession, when it would be most useful. Council had given the scheme its full support and taken the view that it did not matter how much it cost. The Executive Council's one proviso had been that the scheme should not "distort current labour practice" The Governor explained that this proviso, which he said might sound quaint in UK terms, was meant to take account of the present situation in Hong Kong where there was a very rapid turnover of labour at the initiative of employees. The demand for labour was so high at present that workers could switch jobs easily and could even afford to stop work for, say, a week or two before going back to the same job or to another one. It was therefore necessary to guard against the risk of an even greater turnover of labour by requiring that a worker should be unemployed for a reasonable period before becoming entitled to benefit. The Governor thought that, as stated in paragraph 2 of his telegram No 1002, a period of two months would be about right.
3. The Governor pointed out that benefits under the public assistance scheme as it stands at present are not paid until a person has resided in Hong Kong for one year. It was necessary to lay down a more restrictive residence qualification in connection with the extension of the public assistance scheme in order to avoid the obvious criticism that it would otherwise be too easy for immigrants
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CONFIDENTIAL