CONFIDENFI AL
using Colonial Regulation No. 55 to dismiss the suspected men from the Force. (Under OR55, the Secretary of State may agree to the dismissal of public servants in Dependent Territories, without giving reasons for his actions.) We have indicated our general support for this proposal, subject to our being shown evidence sufficient to convince a reasonable man of the guilt of the officers concerned, The Minister may care to confirm to the Governor our
strong support for his efforts to eradicate corruption from the Police,
and assure him that we will make every effort to enable him to take
rapid decisive action.in the Yau Ma Tei case.
SOCIAL DEVELOPMENT IN HONG KONG
4.
The Minister may care to congratulate the Governor on the 35%
increase in Government spending on social services announced in the
recent budget. With the proposals announced in the Governor's speech at the opening of the Legislative Council session last October (and confirmed in this month's budget speech by the Financial Secretary) the Hong Kong Government have now virtually completed the programme of developments set out in the 1976 Planning Paper. We are now considering the next stage. Our starting point for this will be the Hong Kong Government's own five-year development programme, the third version of which is at present being prepared. The Minister may wish to assure the Governor that, in drawing up
the outline for the next stage, we intend to work in close
consultation with the Hong Kong Government. In return we hope that we can count on the full co-operation of the Hong Kong Government in reaching agreement on targets for future social
development.
VISIT OF MR MICHAEL STEWART
5. Mr Michael Stewart, the Special Economic Adviser to the Secretary of State, plans to visit Hong Kong next month. The
Minister may care to emphasise to the Governor the importance which
we attach to this visit, and seek the Governor's assistance in ensuring that every facility is given to enable Mr Stewart to
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