of child labour, it is in Hong Kong's interests to

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ure that standards of education for all are improved. Industry in Hong Kong is becoming increasingly sophisticated and this in turn calls for a more sophisticated, ie a better educated labour force. Governor has recognised this by pressing ahead with plans for the Polytechnic and for technical schools but the products of these must be supported by a better educated general labour force if Hong Kong is to continue to compete.

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Undoubtedly there will be people in Hong Kong who will argue strongly against the notion of free compulsory education and their main argument will be that the Hong Kong Government cannot afford this. first thing which is required therefore is to determine what free compulsory education would cost. At present, the Government subsidises 60% of secondary school students (although, contrary to what the Governor says, none is subsidised 100% see Hong Kong telegram no 302 of 22 March 1977), and as more and more places are provided for secondary school students so will a greater number of poorer children be enrolled. Consequently, the cost of subsidy will go up. Before any proper guidance can be given to the Governor on this question it is important that the facts should be disclosed. Accordingly, I submit a draft reply for the Minister's signature asking the Governor to provide the necessary figures. The draft has been agreed by the Overseas Labour Adviser who suggested a valuable addition.

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