CONFIDENTIA L
30
IMMEDIATE CYPHER CAT A
Ops200
FM FCO 101728Z
CONFIDENTIAL
TÓ IMMEDIATE HONG KONG TELNO 624 OF 10 AUGUST
FOR GOVERNOR ONLY.
YOUR LETTER OF 38 JULY: SOCIAL WELFARE REVIEW.
Bu in 10 Days
فاتر کہا
1. PLEASE SEE PARAGRAPH 1 OF LORD GORONWY-ROBERTS' IMMEDIATELY
PRECEDING TELEGRAM.
2. WE HAVE THE FOLLOWING SPECIFIC QUERIES ON THE PROPOSALS
ENCLOSED WITH YOUR LETTER UNDER REFERENCE:
8
(A) PROVISION FOR THE UNEMPLOYED: LORD GORONWY-ROBERTS HAS SAID THAT QUOTE THE PROPOSED CONTRIBUTORY ... BENEFIT SCHEME
MAY BE
AN UNSUITABLE VEHICLE FOR UNEMPLOYMENT BENEFIT BASED ON ENTITLEMENT
UNQUOTE: WE WOULD BE GRATEFUL TO HAVE YOUR VIEWS ON THE POSSIBLE INTRODUCTION OF UNEMPLOYMENT BENEFITS. AS YOU KNOW, SUCH A PROPOSAL WAS RAISED IN JULY LAST YEAR IN YOUR DISCUSSIONS WITH THE MINISTER: (B) THE COSTS OF THE PROGRAMME: WE ARE NOT CLEAR HOW YOU REACH THE CONCLUSION THAT QUOTE THE COST (OF THE PROGRAMME) IS VERY CONSIDER- ABLE UNQUOTE (PARAGRAPH 6 OF YOUR LETTER UNDER REFERENCE) AND WOULD BE GRATEFUL FOR CLARIFICATION. OUR IMPRESSION IS THAT THE MAJOR NEW CONTRIBUTORY SCHEME WILL BE LARGELY SELF-FINANCING AND THAT THE LIKELY INCREASE IN EXPENDITURE CONSEQUENT ON THE REMAINDER OF THE PROGRAMME IS WELL WITHIN THE SCOPE OF YOUR GOVERNMENT'S PRESENT AND PROJECTED FINANCES: AND
(C) RETIREMENT BENEFITS: LORD GORONWY-ROBERTS HAS ASKED FOR YOUR THOUGHTS ON RETIREMENT BENEFITS (PARAGRAPH 2 OF HIS TELEGRAM). OUR IMPRESSION IS THAT THE EMPLOYERS' CONTRIBUTION OF 2 PERCENT IS UNUSUALLY LOW JUDGED BY SCHEMES CLSEWHERE IN THE FAR EAST. IT IS, IN ANY EVEN USUAL FOR EMPLOYERS' CONTRIBUTIONS TO EXCEED THOSE OF EMPLOYEES.
OWEN
FILES
HKYGD,
OLA
ECOND.
PS/LORD GORUNWY ROBERTS,
MR MURRAY
MR. HAYES
MR. POSNETT
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CONFIDENTIAL
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