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8.^ It is fair to say that things have gone according to plan, since the Governor's last visit. The programme of measures, at least over the short-term, provided for in the Planning Paper, has been made public in the Governor's statement to the Legislative Council, though without, of course, any explicit reference having been made to HMG's involvement in drawing up the programme. So far, the programme has not given rise to any significant overt opposition in Hong Kong, though there may be some from industry when its effects on production costs begin to be felt. There have been rumours that the programme results from pressure from HMG but that was to be expected.
9. The commitment of the Governor himself to the implementation of the new programme within the agreed time-scale is not in doubt. There have already been signs, however, that certain conservative
elements both inside and outside the Hong Kong Government, are not happy and may seek to whittle down the programme. It will remain important, therefore, to keep the Hong
ment' implementation of the programme under constant review in order to ensure that the target dates for the various measures are met. The objective would not be to criticise the Hong Kong Government, though any shortcomings would have to be drawn to their attention, but to assist in overcoming any obstacles that may be encountered. The provision of a social security expert is a case in point (see paragraph 5 above). A Standing Committee of officials, which is to meet quarterly and to report to Lord Goronwy-Roberts, has been established to facilitate this monitoring process. (The Governor is aware of the setting-up of this Committee and has received the minutes of its first meeting on 21 October.)
10. As things stand at present, and subject to the outcome of the discussions on the budget prospects for 1977/78, there are no immediate matters which give grounds for concern. Looking ahead, however, it would be useful to have an indication of the Hong Kong Government's plans for labour legislation in the second and subsequent years of the programme provided for in the Planning
/ Paper
CONFIDENTIAL