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Government's plans for labour legislation in the second and subsequent years of the programme provided for in the Planning Paper. In particular, it would be helpful to know whether the Hong Kong Government have given further thought to statutory provision for a minimum wage (or minimum wages in various occupations), for limits on the hours of work of adult males and for overtime rates.

It was agreed with the Governor that he would not make any

specific reference to these three measures in his statement to the Legislative Council but that, if questions were asked, it would be said that the general formula in his statement on raising standards in Hong Kong to a level broadly equivalent to that in neighbouring countries (see paragraph 3 above) was to be understood as meaning that measures of this sort would have to be considered at some stage. All three measures present considerable difficulties in Hong Kong terms. The Hong Kong Government will not be able to consider them in detail until the present substantial legislative programme is completed. It is, however, important that the Hong Kong Government should begin to prepare the ground as soon as it is politically feasible to do so.

11. Similarly, while the Hong Kong Government's present plans for improving social welfare arrangements are in line with those provided for in the Planning Paper, it is important that they should move ahead as quickly as possible in preparing the new, comprehensive programme envisaged. The acceptance of the offer of a UK expert is a welcome step since we look forward to the introduction of a non-means-tested system of benefits as soon as possible. We shall need to look carefully at the terms of reference

proposed for the expert.

12. There is also some cause for concern as regards the Hong Kong Government's plans for secondary education. At present, these plans, as acknowledged in the Planning Paper, provide for secondary school education for 40% of the 15-16 year old age group by 1980. But, as the Governor announced on 6 October, the Government's programme for achieving this objective has slipped and there is

/at present

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