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that the intention was a wider review looking at our basic
assumptions on Chinese attitudes and assessing how we could
test those assumptions.
2.
Lord Goronwy-Roberts said that the Governor was aware
of the views of the Secretary of State and FCO that a comprehensive social security scheme was essential. He stressed that we were anxious to see the draft of the proposed white paper on the new sickness injury and death benefit scheme
before it is submitted to EXCO. The Governor said that he
hoped the White Paper would be submitted to EXCO before the end of August and that a draft would be sent to the FCO in early August. He hoped that EXCO would accept the proposal, which he was now convinced was right, that the scheme should be compulsory and contributory. He believed however that it might be necessary to omit the retirement and death benefits for the present, because to introduce them could cause speculation in Hong Kong over what will happen in the territory after 1997. The main interest was in the sickness and injury benefits, and the Governor thought it important to introduce these as soon as possible. Other benefits could be added later. Lord Goronwy-Roberts stressed the importance of moving to a comprehensive scheme, which would include unemployment benefit, and a Government contribution of perhaps one third of the total costs, which should be seen as a contribution to all the benefits in the scheme. Mr Cortazzi asked why it was not possible at this stage to bring in unemployment as well as death and retirement benefits. The Governor replied that he did not wish to delay the scheme, and that there was no demand in Hong Kong at present for a non-means tested unemployment benefit. Mr Stewart agreed that he had found little interest in Hong Kong in unemployment benefit but Mr Hurst pointed out that his contacts with trade unionists had lead him to the opposite conclusion. It was agreed to pursue the discussion of this question further once the draft White Paper had been received.
3. Lord Goronwy-Roberts expressed his serious disappointment
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