CONFIDENTIAL
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our concern that the proposals put forward by the Hong Kong Government last year for a semi-voluntary, contributory social security scheme should be seen only as a starting point, and that the ultimate objective should be a truly comprehensive system. On budgetary and fiscal reforms, the Minister might say that he is looking forward with interest to receiving the views of Mr Michael Stewart (who visited Hong Kong from 17-23 April, but has gone on to Japan before returning to London), but that we hope eventually that it will be possible to move towards a more progressive tax system in Hong Kong that will do more to redistribute wealth towards those most in need.
Brunei
DEFENSIVE POINTS
Lord Goronwy-Roberts might explain that we are optimistic that the Sultan of Brunei will now agree to a new treaty and that the Gurkhas will therefore stay in Brunei for a further 5 years. The Minister of State might wish to make clear to the Governor that if events do not proceed smoothly and the Gurkhas have to be withdrawn, the MOD are fully committed to consultation with the Hong Kong Government over the means by which HMG will honour its commitment to reinforce the Hong Kong garrison. We are confident that arrange- ments can be made to provide reinforcements on a level and timescale not significantly inferior to those envisaged by existing plans.
Textiles
If pressed, Lord Goronwy-Roberts may wish to assure the Governor that we will do all we
can to
CONFDENTIAL
/ensure