TNAG-0608-FCO40-756-Planning-paper-on-progress-made-on-social-security-in-Hong-K-1977 — Page 96

Mr Walsh

Reference...

3.4.

CONFIDENTIAL

Deputy Overseas Labour Adviser

Mr Smith

Senior Economic Adviser

Separate copies

29

HONG KONG:

SOCIAL WELFARE REVIEW

1. The Governor of Hong Kong has now responded to Lord Goronwy- Roberts' and my own Head of Department's telegrams of 10 August (FCO telnos 623 and 624 respectively) and I would be grateful for your views on what he says (Hong Kong telnos 819 and 820 of 12 August).

2.

There is no especial hurry about this: might I have reactions by, say, the end of next week.

CODE 18 - 77

۵ در گشته که که

T J David

Hong Kong & General Department

17 August 1977

Mr David, HK&GD

1. My main concern is that the meagre level of benefits payable under the contributory scheme will offer little inducement to employees to join the scheme and that it may as a result get off the ground very slowly. That would give Hong Kong an argument for avoiding extension of the contributory scheme to cover the contin- gency of unemployment. We will need to follow up Lod Goronwy Roberts' request for the views of the Governor on the introduction of an unemployment benefit scheme - we might suggest at the end of two years' experience of the sickness, injury and death benefit scheme.

2. The contributory scheme offers little to workers in employment and nothing to them except for repayment of their contribution on their retirement. I fear that there will be very little incentive to join the scheme and the improvements of the public assistance scheme may be taken in Hong Kong as pointing the way for the extensio of protection against unfortunate contingencies generally, on the basis of the means-tested assistance principle. We should put to the

CONFIDENTIAL

/Governor