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accepted that a plan should be prepared by 1 January 1978.

We offered to find an appropriate expert in the field of

social security to help.

6. On institutional reform, I said that I would be recommending

that you accept his proposals for an expansion of the Legislative Council to make room for representatives of the lower income groups and for those with a known interest in

industrial conditions: it was, however, most important for

these to be supplemented with the appointment of a trade unionist. I commended his proposal to approach the Chairman of one of the public service unions. It seems to me that

the trade unionist might take the place of an existing

member of the Legislative Council who is resigning for

health reasons; but if the Governor wishes to substitute the trade unionist for one of his present nominees and leave a post on the Legislative Council in reserve, this would,

I think, be acceptable.

7. I recognise the pressures on your time at present and do not think you need to go into much detail with the

Governor tomorrow. However, it would help greatly if you

could emphasise the following points:

CONFIDENTIAL.

/ (a) the

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