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ratio of beds from the present 4.1 per 1,000 population to 4.8 by 1983/84. Social welfare expenditure continues to increase. A very substantial programme of labour legislation has been undertaken in recent years and extensive plans exist for the future in this area where it is recognised that the Government has special responsibilities in the absence of effective independent trade unions. The Governor announced further plans for labour and social reform in his speech on 6 October 1976 at the opening of a new session of LegCo. There is currently a public strong feeling in Hong Kong that these plans were imposed on the territory by the British Government, that they are incompatible with Hong Kong's best interests and were designed to reduce Hong Kong's competitiveness vis-à-vis the UK. In response to those misgivings the Governor
of Hong Kong and British Ministers and officials have consistently taken the line that nothing has been imposed on Hong Kong and all that is happening there is with the full agreement of the Hong Kong Government
Constitutional Progress
12. There is a small but vociferous minority in Hong Kong, which enjoys some support in this country, in favour of progress towards some form of representative government. However, the possibility of introducing an elected form of government is ruled out by Chinese opposition to any move which could be construed as setting Hong Kong on the road to internal self-government and independence: and by conflicting political allegiances within the Chinese population. The Chinese authorities are known to be highly sensitive to the risk that any form of election to the Legislative Council might lead to the success of Kuomintang (KMT) candidates. The Governor considers that the way forward is to adjust the social composition of LegCo, without altering its essential (ie non-elective) character a step which was recently taken - and to increase public participation at all levels of government.
Corruption
13.
There have been allegations of corruption in the Hong Kong Police and the rest of the public service for many years. Public
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CONFIDENTIAL
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