CONFIDENTIAL

ннуу

Mr Murgay

HONG KONG:

A

1.

B

C

D

E

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Corommy

4.4.19

4/2

SICKNESS, INJURY AND DEATH BENEFIT INSURANCE SCHEME

I attach the Governor's letter of 17 February in response to my letter of 12 January about the proposals for providing cover against the risks of extended sickness death and retirement.

2.

19

This reply is disappointing. Sir M MacLehose has made no comment on the various suggestions put forward by Mr Heppell (in the note attached to his letter of 16 November) for getting round the difficulties outlined in his (the Governor's)letter of 1 November. Nor does he acknowledge the strong preference which we have expressed

for a self-contained social insurance scheme as a basis on which to

build. Instead, the Governor implies that he is still thinking in terms of providing cover against each of the three risks separately. In the meantime we have seen a copy of the draft of the forthcoming White Paper on Saial Welfare in Hong Kong. The reference to the insurance scheme (paragraph 3.21) will be on the lines included in the Governor's Legco speech last October, namely that the Hong Kong Government accept the need for the coverage but have not yet reached a conclusion on how best to proceed.

3. The problems mentioned in paragraph 2 of the Governor's letter are clearly genuine, but I believe that we should continue to press the merits of an insurance scheme and urge the Governor to give

consideration to the suggestions made by Mr Heppell. to do this might be for me to discuss the subject with the Governor and others during my forthcoming visit to Hong Kong. given warning that I will want to do this.

HKK23411 Pangun

SIZ

RECEIVED MAN HO. SY

10 APP 070

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The best way

I have already

4

See ниск 23411

1981

27 March 1979

INDEX

No

Copy to:

Mr Cortazzi

Lord Goronwy Roberts

Согоишу

R JT McLaren

Hong Kong and General Department

undry

cive to note the position

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reached.

Life

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reasons

the

giver

CONFIDENTIAL

/ Governor's

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