TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 104

CR 220 IMMLOIATE

CYPHER CAT A

CONFIDENTIAL

29

FM F C O 10165OZ

CONFIDENTIAL

(??)

TO IMMEDIATE HONG KONG TELNO 623 OF 10 AUGUST.

See

YOUR LETTER OF 30 JULY TO STEWART: SOCIAL WELFARE REVIEW FOR GOVERNOR ONLY FROM LORD GORONWY-ROBERTS.

1. I HAVE SEEN YOUR LETTER OF 30 JULY TO STEWART ABOUT SOCIAL WELFARE REVIEW AND THE DRAFT EXCO MEMORANDUM. I NATURALLY WELCOME THE NEW PROPOSALS AS A GOOD STEP FORWARD. GIVEN THE PROBLEMS THAT YOU FORESEE IN ATTRACTING PUBLIC SUPPORT FOR WHAT, IN HONG KONG TERMS, ARE AMBITIOUS REFORMS, I WOULD NOT WISH TO SUGGEST ADDING ANY OTHER MAJOR PROPOSAL TO THE MEMORANDUM, THOUGH STEWART WILL BE TELEGRAPHING SEPARATELY WITH SOME QUERIES TO CLEAR UP OUR UNDERSTANDING OF IT.

2. MY MAIN CONCERN NOW, AS I IMAGINE IS YOURS, IS TO SEE THE REST OF THE SOCIAL SECURITY PROGRAMME IN THE PLANNING PAPER CARRIED OUT WITHIN OUR AGREED TIMETABLE. I ACCEPT THAT THE PROPOSED CONTRIBUTORY SICKNESS, INJURY AND DEATH BENEFIT SCHEME AS NOW PREPARED MAY BE AN UNSUITABLE VEHICLE FOR UNEMPLOYMENT BENEFIT BASED ON ENTITLEMENT. AM, OF COURSE, DISAPPOINTED AT THE ABSENCE FROM THE MEMORANDUM OF ANY PROPOSAL FOR UNEMPLOYMENT BENEFIT. WE MUST NOT OVERLOOK THIS MAJOR OBJECTIVE AND I HOPE TO HAVE YOUR THOUGHTS ON THIS BEFORE LONG. I WOULD ALSO LIKE TO HAVE YOUR THOUGHTS ON RETIREMENT BENEFITS WHICH SEEM TO HAVE A VERY SMALL ROLE IN THE NEW PROPOSALS.

3. FINALLY THERE IS THE QUESTION OF TIMING. 1 SEE YOUR DRAFT MEMORANDUM SUGGESTS THAT THE SICKNESS, INJURY AND DEATH BENEFIT SCHEME SHOULD NOT BE INTRODUCED UNTIL APRIL 1981. COULD I ASK YOU TO LOOK AT THE TIMETABLE AND SEE WHETHER THIS CAN BE BROUGHT FORWARD TO THE END OF 1930 WHICH IS OUR GENERAL OBJECTIVE? IF WE SLIP ON THIS, THERE IS PRESUMABLY A RISK OF FURTHER SLIPPAGE ON THE REMAINING MEASURES, E.G. UNEMPLOYMENT BENEFIT. OWEN

FILES

HK & GD (5)

FED

OLA

ECON D

PS/LURD GORONWY-ROBERTS

MR MURRAY

CONFIDENTIAL