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THURSDAY, SEPTEMBER 1, 1994

"IT IS A CONSCIOUS DECISION TO LINK PENSION BENEFITS TO INSTEAD OF WAGES. THIS IS MEANT TO BALANCE THE NEEDS

FOR THE AGED ON THE ONE INCOME SECURITY LEVEL OF AFFORDABILITY

PRICES FOR A BASIC AND THE HAND, WE HAVE LEARNED FROM OF THE COMMUNITY ON THE OTHER.

THE OVER-COMMITTING OTHER COUNTRIES' EXPERIENCE AND CHOSEN TO AVOID COMMUNITY TO A BENEFIT LEVEL WHICH THEY MAY NOT BE WILLING OR ABLE AFFORD.

TO

THAT

**WE ARE DISAPPOINTED THAT THE GROUP HAS IGNORED THE FACT OUR PROPOSED PENSION SCHEME IS DESIGNED TO HAVE AN IRON-LINK' BETWEEN CONTRIBUTION INCOME AND PENSION PAYOUTS, MAKING IT VERY DIFFICULT ARBITRARY INCREASES TO PENSION BENEFITS TO BE MADE WITHOUT THE CONSENT OF THE THREE MILLION CONTRIBUTORS.

"ON

OBTAINING

ELSEWHERE,

THE

EXPERIENCE OF OPERATING SIMILAR SCHEMES ACADEMICS HAVE CHOSEN TO HIGHLIGHT THE DIFFICULTIES ONLY, BUT IGNORING SCHEMES IN THE TANGIBLE AND INTANGIBLE BENEFITS GENERATED BY THESE

TO MAINTAIN A MORE REDUCING POVERTY FOR THE AGED AND IN HELPING HARMONIOUS COMMUNITY.

"THEY

THE DESPITE

ARE OVER- THE WORLD ARE NEIGHBOURING

HAVE ALSO CHOSEN TO IGNORE THE FACT THAT, DIFFICULTIES EXPERIENCED BY SOME COUNTRIES WHOSE BENEFITS GENEROUS, MORE THAN 85 PER CENT OF THE COUNTRIES IN

SIMILAR OPERATING

INCLUDING SOCIAL INSURANCE SCHEMES, COUNTRIES SUCH AS JAPAN, SOUTH KOREA, TAIWAN AND CHINA.

OF

"THE IDEA THAT THE PROPOSED OLD AGE PENSION SCHEME WOULD AFFECT CREDIBLE. WORK ETHICS AND FAMILY SUPPORT FOR THE ELDERLY IS HARDLY AT A BASIC BENEFIT LEVEL OF $2,300 PER MONTH, A TOTAL CONTRIBUTION 3 PER CENT OF ASSESSABLE INCOME, AND WITH THE TOTAL COST OF THE SCHEME ECONOMIST OR NOT EXCEEDING 1.5 PER CENT OF GDP, IT DOES NOT NEED AN SOCIOLOGIST TO SEE THAT THIS SORT OF ARGUMENT GOES BEYOND THE REALM OF RATIONALITY AND COMMON SENSE."

HONG KONG

་་

AN IMPORTANT MARKET FOR U.S.

THE

FINANCIAL SECRETARY, SIR HAMISH MACLEOD, STRESSED THIS (THURSDAY) EVENING THAT IN ADDITION TO BEING A KEY INTERMEDIARY FOR TRADE AND INVESTMENT BETWEEN THE U.S. AND CHINA, HONG KONG WAS ALSO AN IMPORTANT MARKET IN ITS OWN RIGHT.

SPEAKING AT A DINNER HOSTED IN HONOUR OF THE U.9. SECRETARY OF COMMERCE, MR RONALD H BROWN, SIR HAMISH SAID THIS WAS WELL ILLUSTRATED BY U.S. TRADE FIGURES, WHICH SHOWED THAT U.S. EXPORTS TO HONG KONG, AT ABOUT US$9.8 BILLION, EXCEEDED U.S. EXPORTS TO CHINA.

"NOR ARE WE JUST A MAJOR TRADER IN GOODS

SEVENTH LARGEST IMPORTER IN THE WORLD IN FACT. WE ARE SUCCESSFUL TOO IN SERVICES, PARTICULARLY FINANCIAL SERVICES,' HE SAID.

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SIR HAMISH SAID HONG KONG HAD MAJOR CONSTRUCTION CONTRACTS FOR WHICH U.S. COMPANIES WERE WELCOME TO BID.

AND OTHER

/EXPENDITURE ON

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