CONFIDENTIAL
we believe it would still be worthwhile to draw up a statement of policy objectives for Hong Kong after 1980.
4.
Although, after more careful study, we may wish to query one or two points of detail, broadly speaking we accept the proposals on housing, medical and health services, education, transport and social welfare: there is no need to discuss
these further now.
5. The proposals on labour will need to be reconsidered and expanded in the light of Professor Turner's report, which is now expected in September.
6. The proposals on Social Security will need to take account of the earlier discussions of the proposed new Social
Insurance Scheme.
7. On the economic, commercial and financial proposals, the Minister may wish to refer to Mr Michael Stewart's belief that as 1997 approaches the Hong Kong Government will have to play a more direct role in managing the economy. The proposals in the paper mostly see the Government in its traditional role of maintaining the conditions in which the normal market forces can operate. Does the Governor accept Mr Stewart's analysis, and if so should his paper not envisage the Government's becoming more directly involved?
8. Mr Stewart also concluded that the Government will need to involve more people, particularly younger people, in the running of Hong Kong. We have already discussed the question of broadening representation in the Executive and Legislative Councils. Localisation is another important aspect of this problem. We note that the Government are firmly committed to a policy of greater localisation in the public service, though there have been too few signs as yet of this being implemented at the top levels.
9.
But we shall need to consider the whole question of Hong Kong's political institutions in the broader context of a
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