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Mr Hurst (Overseas Labour Adviser

G 65/G)

HKK 013/2

Reference...

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HONG KONG: REVIEW OF SOCIAL WELFARE

1.

There was some discussion of the Governor of Hong Kong's letter of 11 May at the Standing Committee's meeting last week. After Mr Stewart had drawn attention to the encouraging timetable that the Hong Kong Government propose to work to as regards its review of social welfare, Mr Murray suggested that a letter might be sent to the Governor pointing out the distinction, which is obscurred in his letter, between "social welfare" and "social security" Mr Murray has since said that if we and you are still of the same mind about the confusion over the nomenclature we should ensure that the Hong Kong Government gets it right in future.

2. I am doubtful about pursuing this point with the Hong Kong Government for the following two reasons. First, the distinction between social welfare and social security will, of course, be perfectly clear in Mr Heppell's mind (see in this connection his letters of 17 and 24 March to Mr Stewart, the second of which arrived after Mr Stewart had left on his last visit to Hong Kong). I should have thought that we could leave it to him to ensure that this distinction will be properly maintained in the various papers that are to result from the current review of social welfare. Mr Heppell himself is to play a large part in the writing of a memorandum for Exco, etc. In addition, the Governor has said there will be an opportunity for us to comment before the Exco memorandum is circulated, before his Legco speech is finalised and before a white paper is published. If the distinction between social welfare and social security remains obscure we could put it right later on.

3. Second, and more important, I think it would be a mistake to

It is discourage Hong Kong from using the term "social security". a social security programme rather than an extended programme of social welfare that we want Hong Kong to address themselves (see, for example, paragraph 2 of Mr Stewart's letter of 3 March to the Chief Secretary). Even if the Governor, who is not an expert in these matters, has misused the term "social security" in his letter I would prefer that we should let the matter rest than that we should say anything that would induce Hong Kong to think solely in terms of social welfare. It may be that Mr Heppell has already succeeded in persuading the Hong Kong Government to be social security conscious and if that is so it would be unfortunate if we were to undo the good work he has done by a false move on our part.

4.

Subject to your views, I am inclined to suggest therefore that Mr Stewart should send a straightforward acknowledgement of the Governor's letter along the lines of the attached draft.

D. F. Millon

DF Milton

Hong Kong & General Dept K 247

233 4381

CODE 18 - 77

24 May 1977

cc: Mr Stewart/Mr Daffy

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