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in political terms here and partly because Hong Kong can show that, with the momentum picking up again after the recent recession, there is less room for improvement on their existing plans for housing and education. We have suggested a hybrid social security. scheme (part contributory, part non-contributory) with payments related to entitlements and not, as at present, need; and it will be observed from the record of Lord Goronwy-Roberts' meeting with the Colonial Secretary that Lord Goronwy-Roberts endorses this concept. (We cannot of course set out a detailed scheme but only indicate. the general lines of what is desirable.)
9.
there
Institutional (paragraphs 29-32). We agreed that the primary aim should be to broaden the social background of the Legislative Council and, while this would result in a larger Council, are real objections in making the body too big. The most important is the one cited in paragraph 30 of the Paper: that a large Council would be less responsive to influence by the Governor in the pursuit of other, more important, objectives., There is also the risk of misunderstanding of our intentions on the part of the Chinese (paragraph 7 of Mr Youde's letter of 24 May to Mr Cortazzi); but the argument is strong enough as it stands without citing this objection which we know did not greatly appeal to the former Secretary of State.
Britain and Hong Kong (Section VI)
10. In the interests of establishing a firm programme for action with Hong Kong, we agreed to omit references to the conservatism of the Hong Kong establishment and its capacity to obstruct progress. This only provoked the Hong Kong redraft to be over- defensive and to produce once again the unconvincing argument that
We the population as a whole is opposed to social advance. could not accept the Hong Kong description of the problem which, incidentally, led Mr Lipsey to object to the complacent tone of their draft and there was thus agreement to waste no more time on what is, essentially, a side issue.
11.
We also agreed to place less emphasis on interventionism in Hong Kong affairs by HMG (but of course retaining the possibility" of issuing Instructions). This is because Hong Kong have
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