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significant overt opposition in Hong Kong to the measures the Governor had announced. It was true that industry might have things to say if and when the now measures had an impact on production costs. Lord Goronwy-Roberts assumed that people in Hong Kong would say that the new measures had been introduced as a result of pressure from HMG. The Governor would expect him to deny this strongly: an alternative policy would be impolitic. He thought HMG had been reasonable both in the parameters of what had been suggested and the tone of voice with which the suggestions had been made.
4. Hong Kong's ability to implement the programme was not in doubt. However, he was uncertain how the programme would be funded. He had no dogmatic views on how the money should be raised but was convinced that it should be raised on as socially equitable a basis as possible, without of course impairing the peculiar economic situation in which Hong Kong operated.
5. He would be interested to hear how the Mass Transit Railway Project was being funded. It was, of course, separate from the budget. How quickly did Hong Kong hope to amortize its loans and what was Hong Kong's general policy on amortization? He also wished to know to what extent the Governor felt that the Hong Kong Government would have to come to the aid of the MTR to make capital repayments.
6.
Lord Goronwy-Roberts said that progress on educational development had been considerable and Hong Kong had wide-reaching plans. However, if he had reservations, it was on the subject of education; that was never an easy matter to assess or fund. At present Hong Kong had plans, as set out in the Planning Paper, to provide secondary school education for 40% of the 15-16 year-old age group by 1980. Yet the Governor's speech on 6 October seemed to suggest that this objective had slipped and that there was at present provision for only 29% of the children concerned to receive secondary education by the target date. He knew the Governor would understand the importance he attached to the target being reached. He also felt that, while higher education was of course very important, technical and pre-technical education were vital. He would be interested to know what preparation was being made in primary and secondary schools for later technical education.
7. Sir M MacLehose said that he entirely shared Lord Goronwy-Roberts' general feeling of relief and satisfaction. Both these sentiments were in place.
It must be difficult for those at the table to recall just how frustrating were the years of Hong Kong's recession. It was a pleasure now to be able to report progress.
8. As to reactions to his LegCo speech, the first reactions were little more than polite genuflections. The fact, therefore, that the speech had a good press was relatively unimportant. It was the secondary reactions which mattered. He expected a very wide reaction, particularly from small businessmen whose fears would be fanned by the Communists. He expected the measures he had announced to get a reasonably rough passage. But he was confident that he could ride through it. He expected some members of LegCo to lose their nerve in the process; this was one of the accepted penalties of the present constitutional system. He expected he would get through all the measures during the current session. However, it was a formidable programme and, at the very worst, one or two measures might be left over to be taken up immediately at the start of the next session.
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