Mr Farrar (PPD)
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HONG KONG DEPARTMENT: PROPOSAL TO INCREASE THE ESTABLISHMENT
1.
Mr Morgan, in paragraph 3 of his minute of 28 May 1976 coverme his report on the inspection of IKIOD, recorded my predecessor's view that the shape of what has since become HKD "will need further consideration when all the various uncertainties about the future relationship with the Hong Kong Government are resolved". Elsewher in his report Mr Morgan said that the Planning Paper on Hong Kong, which envisaged a new relationship with the Colony, was still under consideration and that it was not therefore possible at the Lime of his inspection to assess staffing implications if it weri
were to be accepted (paragraph 10 of Part I of Mir Morgan's report). Mr Morgun alluded elsewhere in his report to the possible need to increase the establishment of HKD in the light of decisions on the Puning Paper, e.g. paragraph 22 of Part II.
2.
The Planning Paper was approved by the Secretary of State in late July last year and HKD has now had 6 months experience of working the new relationship with llong Kong embodied in it. provides for the "monitoring" of the Hong Kong Government's plous for progress in various fields, including labour matters, welfare services, education, housing, etc, and in general for a more "interventionist" policy towards Hong Kong. The result that IKD keeps a closer watch on Hong Kong's affairs general 17 specially in the sectors I have mentioned than did its predeces.to Department. A new system of quarterly reports from all the gebes in the Hong Kong Government Secretariat has been justiluted on of the previous flow of ad hoc reporting. The Department, considers these quarterly reports and other material and brings watter of interest to the attention of a Standing Committee of Oricinta up to give guidance on the monitoring of the Planning Tiper. Committee meets quarterly and reports to Lord Goronzy-hober: (he takes a close interest in the implementation of the Plming Pee). The processing of the quarterly reports and the servicing of Standing Committee has placed an increased work lond on HFD. enlist the help of the Overseas Labour Adviser, one of the Senior Economic Advisers, FRD and others, where appropriate, in serubini in the reports, but the work falls primarily on my Department. have tried but failed to "farm out" responsibility for more specialized aspects of Hong Kong's affairs to other Whitehall Departments (paragraph 10 of Mr Morgan's report).
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3. It was also envisaged that the "new relationship" with Hong Kong would involve more personal contact between the Governor and officials in Hong Kong and my Department. This has turned onl to be the case. A dozen Heads of Hong Kong Government Departm were in the Office during the last three months of 1976, and the Governor also made one of his regular six-monthly visits during
ADMINISTRATION IN CONFIDENCE
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