Letter to Government

Actuary

CONFIDENTIAL

ра

30

НКК 2344

234/1

RECEIVED IN JUGISTRY NO. 51 3 March 0 APR 1978

DESK OFFICER

INDEX

PA

по

Action Taken

दह

HONG KONG: SOCIAL SECURITY

As we agreed, I am writing to confirm the decisions made at yesterday's meeting.

1.

2. When Michael Stewart and I visit Hong Kong from 14 April we shall discuss, among other things, the recently published Green Paper on Social Security. At present the Scheme proposed in the Green Paper is a voluntary one and we shall be discussing whether or not the Scheme, when introduced, should be compulsory. We shall also propose that in addition to the contribution from employers and employees, some part of the funding, possibly one-third, should be from a direct Government contribution. We shall also discuss whether, and to what extent, contributions and benefits should be earnings related.

3. We shall also discuss the possibility of the introduction of some form of interim insurance which will be non-means tested and available as a right, as opposed to the present Public Assistance Scheme, for those aged between 15 and 55. We shall also discuss whether such an interim Scheme should be linked to social and security proposals included in the Green Paper or whether this should be/completely separate

scheme.

4. You kindly offered to provide us with whatever data could be gathered in time on costings and benefits for these various proposals.

cc:

Mr Cortazzi Mr M Stewart Mr Hurst

JA B Stewart

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