Mr O'Keeffe

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Mr Larmour

CONFIDENTIAL

26

4

1. Sir Y K Kan came on to see me and we went over much the same

ground except that I did not of course discuss the question of

Sir Murray MacLehose's appointment. My main concern was to get

across to Sir Y K Kan the need for faster social progress in Hong

Kong, with a more progressive taxation system and a better safety

net for those in need including unemployment benefits. Sir Y K Kan

took this in good part and indicated that in his view Hong Kong

could bear some higher taxation without loss of confidence. He

said in passing that he had told the Governor that he would prefer

not to serve a further term on the Legislative Council.

2. I should be grateful if Mr O'Keeffe could look into the point

in paragraph 6 of the PUS's minute about Hong Kong and the

Commonwealth Parliamentary Association.

West Collingd

HAH Cortazzi

8 June 1976

CONFIDENTIAL

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