CONFIDENTIAL

BRIEF C

Wick 65

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SOCIAL POLICIES AND THE TAX STRUCTURE

1. The Governor of Hong Kong has achieved, or is well on the way to achieving, the great majority of the objectives agreed in the 1976 Planning Paper. This has resulted in improvements in the quality of life in Hong Kong, particularly as a result of the introduction of compulsory free education up to the age of 15 and because the end of the most serious housing shortage is now within sight.

2. When the Planning Paper was written it was not with the intention that it should represent the final objective. It is

therefore important to start now to reach agreement with the Government of Hong Kong on those objectives which should be set

for the future. The following are the main areas where further development is most needed:

a) Further implementation of ILO conventions;

b) Introduction of a statutory minimum wage and maximum hours of work;

c) Improved sickness and redundancy payments;

d) Free medical treatment;

e) Unemployment and retirement benefits;

f)

Improvements in housing standards;

g) Improvements in the quality of education;

h)

Greater efforts in controlling drug abuse and

in the rehabilitation of drug addicts.

Of these (g) is perhaps the most pressing.

The Standing Committee

meeting on 11 November suggested that we offer Hong Kong the

services of one of Her Majesty's Inspectors.

3. The first step is to convince the Governor that further progress

is essential. When this has been done discussions can start

between officials on the way in which such progress could be

achieved.

4. Any further improvements in social conditions will constitute

an added financial burden for the Hong Kong Government.

The

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CONFIDENTIAL

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