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18 and 55. In general, the aim should, in our view, be to produce an agreed scheme of extended benefits to vulnerable groups by 1 January 1978 for introduction in a series of steps by the end of 1980.

27. The next most obvious target for increased expenditure is housing. The Hong Kong Government has made significant progress in housing the immense influx of refugees from China since the Second World. War, and has plans for additional housing which will bring the

age of those

in government housing up to 64% by 1986 by which time it estimates that the back of the problem will be broken. However, we assume that, on past performances, this target should be well realizeable within projected levels of public expenditure. However, it is arguable that standards of accommodation so provided will be too low certainly as compared with Singapore. The Hong Kong Government should be asked to make proposals for the improvement of standards assuming financial resources are to be available and assuming that the programmes will not result in fewer people being housed. The proposals should, we suggest, be available by 1 January 1978.

28. The Hong Kong Government's plans in the fields of education and health certainly compare well with those

in Singapore and that in the field of education considerable efforts have been made to relate these to estimated manpower requirements in certain industries. We believe that educational plans are the most that can reasonably be implemented over the next 5 years, but thereafter, better provision for those over 15 should be aimed at and a plan prepared by 1 January 1979. Medical care seems, on the whole, well catered for (being, for instance, well in advance of Singapore) and there are plans for further expansion over the timescale of this paper.

29. Institutional reform is beset with a number of diffi- culties peculiar to Hong Kong. The normal Westminster pattern of elected Government is barred by the attitude of

Page 91he Chinese (the arpugent developed in Annex Page 91 of 203

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