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C.
Taxation
It was agreed that conventional solutions
were often inappropriate in the special circumstances of Hong Kong. Nonetheless, it was felt that there case for making certain changes, for example on the questions of the territorial-source basis for taxation, and aggregation of income from all sources for the purpose of income tax.
d.
Social Policy
Mr M Stewart reported that local opinion strongly favoured a sickness, injury and death benefit scheme that would be both contributory and compulsory. This was welcomed, but some concern was expressed over the apparent lack of support for a wider social security scheme. It was understandable that people might be reluctant to support a contributory old age pension scheme from which they might never benefit. But the absence of a non-means-tested unemployment benefit was a source of particular criticism in the UK, and it was politically important that such reform should be seriously considered. It was agreed that the Secretary of State should be briefed to discuss this question with the Governor.
Item 3: The future of the Standing Committee
It was agreed that the Standing Committee should continue to meet, even though its original role (to review the implementation of the recommendations in the planning paper) had now been largely fulfilled. more appropriate title would be adopted in future.
Item 4: Any other business
A
There was agreement that the Royal Hong Kong Police Force would continue to be a sensitive subject for some
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