TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 114

CONFIDENTIAL

ment present and projected finances;

2.

(c) I am also concerned that retirement

benefits appear to have been given a secondary rôle. The employers' contribution of 2% is unusually low - 5% would appear more suitable

and usual judged by schemes elsewhere in the Far East and it is, in any event, usual for both employers to contribute more per capita than their employees; and

(a) I would be interested to know why the contributory scheme is not to be introduced for 3 years.

This would seem an excessively long gestation period. It would be helpful to know whether an employee's contributions would be subject to abatement if he withdrew them from

the scheme, and what would happen in that case to the employer's matching contributions.

2.

I appreciate the problems that you foresee in attracting public support for what in Hong Kong terms are ambitious re

forms.

CONFIDENTIAL

032717 E.W.& S., Ltd. 164m 3/67.

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