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growth in the textile industry. The meeting thought that Hong Kong's, and especially Mr Jordan's, negotiating
tactics had damaged their case, and could possibly prejudice other Hong Kong negotiations.
(f) Police and ICAC
Concern was expressed over the Yau ma tei case and it was agreed that Hong Kong should be asked for details of the progress made in prosecuting the offenders. The meeting noted that the Junior Police Officers Association second- round elections would be completed in March. Mr Cater was now not expected to come to London until May, when Mr Crane would probably be able to give his final report. It was hoped that this report would lead to some reorganization in the recruitment of British and Chinese officers. An assessment of the forthcoming BBC series on the Hong Kong police was promised.
ITEM 2: FUTURE SOCIAL PROGRESS IN HONG KONG
(a) After 1980
Although Hong Kong had almost fulfilled the Planning Paper's requirements, it was agreed that the constant surplus in Hong Kong's budgets made possible a further advance in social progress.
In the event of a recession, high unemployment in Hong Kong without adequate social security benefits would be a major threat to social stability. It was decided that, as Lord Goronwy-Roberts had suggested to the Governor, consideration, in close consultation with the Hong Kong Government, should now be given to the next stage of social development. It was hoped that agreement in outline could be ready in time for the Secretary of State's possible visit in the autumn.
(b) Housing
Hong Kong's achievements in housing were acknowledged, but the meeting considered that standards should be raised. Despite the work of the Mutual Aid Committees, it was noted that some areas still lacked adequate leisure facilities.
(c)
Education
It was agreed that beyond the age of 15 education should remain voluntary but that the extension of subsidies paid to families to meet private school fees could be examined. The meeting noted that the question of a visit to Hong Kong by a UK Inspector of Schools had been raised
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