CONFIDENTIAL
last word should rest with HMG.
However, local awareness of
Hong Kong's importance as a trading power and the Chinese sociological attitudes prevailing there, often leads to demands that decisions on what are regarded as purely local matters
should be taken without regard for the possible implications for HMG.
10. Relations with Hong Kong are therefore rarely, if ever, straightforward and in recent times they possibly have been more
strained than normal. There are a number of issues, none of them vital, but cumulatively important, which underlie the present uneasy relationship.
Social Progress
11. There is some critical interest in labour and social conditions
in Hong Kong amongst various influential bodies in this country, including the TUC and the NEC of the Labour Party. This was given fresh stimulus a year ago by the publication of a Fabian Society pamphlet entitled "Hong Kong: Britain's Responsibility" written by Joe England. In considering criticism of labour and social conditions
in Hong Kong it should be remembered that the Hong Kong Government continues to face grave problems in the social field resulting mainly from a seven-fold increase in population since 1945. The present Governor has done much to promote social and labour policies more in line with currently acceptable standards. An increasing proportion of public expenditure is being spent to ameliorate the conditions of the lower income groups in Hong Kong. The Hong Kong Government has already provided free primary education for every child up to the age of 12 and is aiming, by September 1978, to provide subsidised secondary education for all children up to the age of 14 and for 40% of those up to the age of 16. In the field of housing 1.7 million, or 43% of the population, have already been accommodated in government-subsidised housing and there are plans to provide public housing for a total of 3.3 million, or 54% of the then estimated population by 1983/84. There are plans to increase the
:
CONFIDENTIAL
/ ratio