TNAG-0520-FCO40-615-Visit-of-Lord-Goronwy-Roberts--Parliamentary-Under-Secretary-1987 — Page 89

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Sir D Watson

CONFIDENTIAL

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Brockway

PUBLIC ASSISTANCE SCHEME AND UNEMPLOYMENT IN HONG KONG

1.

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Following his Question in the House of Lords on 4 February about reforms in Hong Kong, Lord Brockway raised supplementary points about unemployment allowance for able-bodied persons between the ages of 15 and 55 in the Colony, and allegations of delay in the payment of social security benefits. As it seemed possible that Lord Brockway would pursue these points with the Minister, we asked Hong Kong for their comments on them. These we have now received.

2.

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Subsequently, Lord Brockway wrote to Lord Goronwy-Roberts to Kistake up his second point (delay in welfare payments) but not the

first. We have asked for Hong Kong's further comments on the two specific cases he quotes, and shall submit separately on these when an answer is received. Meanwhile Lord Brockway's letter has been acknowledged by Lord Goronwy-Roberts's office.

3. As far as Lord Brockway's first point is concerned, it is true that there is no unemployment allowance as such in Hong Kong

and that able-bodied male adults are excluded from the Public

Assistance scheme. The reasons for this as explained in the Hong Kong telegram are crassly expressed and owe much to the general Chinese attitude to work (the telegram is evidently drafted by someone whose language is not English perhaps F K Li, the Secretary for Social Services). But, at least at a time of reasonably full employment it is a defensible position that the limited funds available should go first to those who are unable to help themselves;

that is, to families and to the old and sick.

14.

This policy will however come under severe strain should unemployment continue at present levels or increase. It is therefore proper that the Hong Kong Government, notwithstanding its present

financial problems, should be studying the implications and preparing

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