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essential that steady progress should be made in realising further resources by raising both domestic and commercial rents to real- istic levels. Use can be made of the existing machinery to ensure that where the means of individual tenants are not equal to increased rents, special assistance should be provided. Borrowing could make a contribution; and the Hong Kong Government is at present negotiating a loan of approximately HK$ 300 million from the Asian Development Bank for this purpose. Additionally, a scheme is shortly to be introduced to encourage better-off tenants to buy new flats through a home purchase scheme, thus releasing existing accommodation for those in more need.
10. In spite of the improvements of recent years, there are weaknesses or gaps in the social security system, though to some extent these are attributable to the absence of any contributory element. There is no direct provision for unemployment benefit (though in Asia such benefits are only paid in Japan, and in Hong Kong the requirement is to some extent met by public assistance). Pensions are small and are available only to persons of 75 and over; though medical treatment is available without contributions, sickness benefit is an employer's liability and does not extend beyond 24 days (though public assistance would be available). Similarly there is no pension for widows as such, though they are eligible for public assistance. The full details
of the current scheme are in Anex D. There appear to be two alternatives. The first is to build on the present scheme whose administration is now well established, is working well, and is technically capable of considerable modification or expansion if such are considered desirable. By such means a complete system of social security based on need, however defined, could be established. Alternatively, a new system based on compulsory contributions by employers and employees could be substituted within the form of a Provident Fund or along UK lines. The objections to either of the latter concepts is that with the uncertain future of Hong Kong the population would resent deductions from their disposable income now in return for a promise of
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