TNAG-0788-FCO40-992-Development-of-social-policy-in-Hong-Kong-proposed-contribut-1978 — Page 153

AKK 234.11.

Foreign and Commonwealth Office M London SW1A 2AH

LV Martin Esq

Government Actuary's Department

Steel House

Tothill Street

London SW1H 9LS

Telephone 01-2531069.

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Your reference

Our reference

Date

ས་;

MAD 1973

15 March 1978

12

1

1. You recently sent us a copy of your comments on Hong Kong's proposed Sickness, Injury, and Death Benefit Scheme. We take a very close interest in the proposed Scheme and are anxious that it be extended as fully and rapidly as possible. We therefore found your Department's comments very interesting and I wonder if we might impose on you for your comments on two hypothetical points.

2. The first touches on the future extension of the Scheme. Our view is that Hong Kong could include_non-means tested unemploy- ment benefit and retirement benefit and I would welcome your opinion on a compulsory contributory scheme providing for such benefits. I say compulsory largely because of your comments on

/ the danger the existing proposals of allowing both parties to contract out.

3. In addition we would appreciate an estimate of the scale of benefits which would be possible with a contribution of HK$50 per month, shared equally by employer and employee. This would represent a 5.6% contribution at the average industrial wage in 1977 of HK$910.

4. I should explain that the purpose of my request is to establish before approaching the Hong Kong Government the validity of any suggestion we might wish to make. There is no question of our holding up your views as proof of the rightness of our ideas.

J Thompson

Hong Kong and General Department