TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 91

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expected. The commentary in Hong Kong telegram No 820 is, to my mind, an adequate explanation of why these measures are not in the present scheme but they do not constitute a measured reply to Lord Goronwy-Roberts' request for his thoughts as in paragraph 2 of FCO telegram to Hong Kong No 623.

4. I see no value in going at this subject piecemeal with Hong Kong. Nor, frankly, do I see any point in Mr Stewart taking the subject up when he is in Hong Kong next month, except to warn the Governor that we would like to have a full discussion of the social security legislation programme when he is in London in November. We should aim to get an agreed FCO position ready for such a discussion, based on what remains to be done to complete the social welfare programme, the amount of time left, and the practical and legislative difficulties the Governor may envisage. And, although it is not relevant to the present papers, we must not lose sight of the need for progress on taxation, which is equally important in terms of social reform and in which the Secretary of State has shown a special concern.

5. Meanwhile I think our first step is a thorough discussion with Mr Heppell next month because he is the one expert who, as a UK civil servant, has been involved in the practical issues in recent months. I would like his 'debriefing' to take place in my presence.

Di

DF Murray

2 September 1977

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I have discussed with Mr Murray. We agreed that:-

The first step should be a thorough discussion with Mr Heppell.

There is no point in nit-picking on the present proposals.

We should concentrate on getting the Governor to push on towards the goal of an extended social security programme by the end of 1980; this means that the Governor will need to be ready to discuss with Lord Goronwy-Roberts the points made in Hong Kong telegram No 623.

It is not going to be easy to get the Government of Hong Kong to carry HMG's policies in this matter and we shall have to exercise a good deal of pressure over the next few months,but let us make sure that it is effective pressure.

5 September 1977

HAH Cortazzi

CONFIDENTIAL