16.
Lord Goronwy-Roberts agreed with this but only because he felt that social objectiven had been set to match the money available, and suggested that a re-assessment of objectives, both quantitative and qualitative was required. Only when this had been done could there be an accurate assessment of the funds required.
17. Lord Goronwy-Roberts reiterated his belief that an improvement was required and suggested that officials should get together as soon as possible to consider the next stage of development. One particular area where he felt help could be offered was in the provision of one or more Education Advisers (formerly HMI). Sir Murray MacLehose suggested that Mr Stewart write to the Director of Education in Hong Kong for his views on the timing of any such assistance and what form it should take.
18. Lord Goronwy-Roberts turned to the question of the budget and impressed on the Governor the need for an early preview of the 1978 proposals. Sir Murray MacLehose agreed that this would be provided but explained that it was going to be a difficult budget to forecast because of the uncertainties about textiles and general world trade. In the current financial year the Government surplus was expected to be about HK$450 millions rather than the budgeted HK$30 millions. Next year his Govern- ment was budgeting for a deficit of about the same size as this year's expected surplus. Expenditure would rise by 19% in money terms, on the assumption of a 7% growth in GDP, but he expressed serious reservations as to whether this would be achieved. Nevertheless, he accepted fully the need to complete social programmes and explained that if the deficit proved to be greater than forecast it would be met either from increased taxation, borrowing or the use of reserves. Lord Goronwy- Roberts welcomed the Governor's readiness to let us have the full details as soon as possible and suggested that they be provided perhaps a month in advance.
19.
He then moved on to the sickness, injury and death benefit scheme which the Governor had proposed and asked whether early results could be expected. Sir Murray could not guarantee that there would be any speeding up of the programme until discussions with trade unions and employers, which were themselves dependent on actuarial calculations currently being carried out by the Government Actuary. * The target date of 1981 was one which Mr Heppell of DHSS had felt was the earlies practicable. when agreement had been reached there was still complicated pleted legislation to draw up.
*had been
com-
Even
20. Mr Hurst suggested that assistance on drawing up the legis- lation could be given from the UK. He went on to explain that in his view current proposals were a first step to a full social security scheme. Sir Murray MacLehose did not dissent but
/made