TNAG-0750-FCO40-954-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-UK-1978 — Page 20

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contribution will both be introduced within an agreed period.

We envisage a Government contribution equal to one-third of

the scheme's revenue.

4. Although we see advantage in linking the introduction of these two measures, it would be a mistake to suggest that the unemployment benefit should be funded in its entirety by

the Government contribution. To do this would increase the pressure to make the unemployment benefit means tested and would of its introduction being condemned as a "loungers' charter".

A contributory scheme is likely to be more acceptable to Hong Kong public opinion (since it would carry with it the clear understanding that the contributions created an entitlement to the benefits) and to aid the realisation now lacking in Hong Kong that periods of unemployment are inevitable in an advanced industrial society and need not be regarded as cause

for shame.

5. Since we have not yet seen the draft White Paper, we cannot usefully go into any detail. We can however try to impress on the Governor that the initial proposals should be regarded as an interim measure which provides the basis for the comprehensive scheme we have in mind.

∙Carry

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the risk