CONFIDENTIAL

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Dlauly

Services in fouth

I go out Johann!/

2.

Social Developments in Hong Kong after 1980

1.

When he was in Hong Kong last week, Mr John Stewart gave the Governor a copy of our outline of possible developments in Hong Kong beyond the time covered by the present planning paper. After some initial reluctance to accept the concept of committing his Government to any further plan that was subject to the approval of Ministers in

London, the Governor finally agreed that he would draw on the outline to prepare a brief on future developments in time for the Secretary

of State's visit next autumn.

2. A copy of the outline paper is attached. It was agreed between the Governor and Mr Stewart that the existence of this paper

should not be made known to anybody else in

Hong Kong. When the Governor submits his draft brief for the Secretary of State, it will be presented as if it had been entirely devised in Hong Kong.

3. In fact this is not far from the truth anyway. Most of the proposals in the paper are drawn from Hong Kong's own forward development plans. The only important

additions that we have made are the proposals for a comprehensive social security scheme as a logical development from the limited

scheme which the Government are about to

introduce, and for reforms of the fiscal

and budgetary systems. The Governor told Mr Stewart that he was unwilling to commit

/himself

CONFIDENTIAL

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