TNAG-0876-FCO40-1086-Development-of-social-welfare-policy-in-Hong-Kong-1979 — Page 144

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Oral Answers

21 MARCH 1979

with the Arab States as friends and part- ners for regional security, I think that we should do that—and we are doing it.

Hong Kong

5. Mr. Parry asked the Secretary of State for Foreign and Commonwealth Affairs if he is satisfied with the progress of social services in Hong Kong.

The

Under-Secretary of State for Foreign and Commonwealth Affairs (Mr. Evan Luard): The Hong Kong Govern- ment have an extensive social develop- ment programme designed to ensure that Hong Kong's social services are at least as good as the best available elsewhere in South-East Asia. My right hon. Friend is satisfied that good progress is being made.

Mr. Parry: Is my hon. Friend aware that this year the budget forecast is for a surplus of nearly HK $1 billion-the second largest surplus ever? That was achieved in spite of tax cuts to the wealthy, while taxation of the lower paid remained the same. Does my hon. Friend agree that more money could be spent on improving social services, especially in view of the unsatisfactory replies that 1 received yesterday?

Mr. Luard: I hope I made clear that good progress was being made in improv- ing the social services in Hong Kong. I agree that that is an important aim." Al- ready the Government of Hong Kong have rehoused 2 million people, which is half the population. They aim to rehouse two-thirds of the population by 1985. Nine years' free education is now pro- vided, and education will be compulsory next year. There are almost free medical services and means-tested public assist- ance. Quite a lot has been done.

Mr. Blaker: Does the Minister agree that the progress made in social services by the Government of Hong Kong has not merely been good but remarkable? Is he aware that this progress is based on the Hong Kong system of free enter- prise and low taxation? Will he invite the Governor to send a team of experts en economics, finance and industry to advise this Government so that we may * achieve similar results?

Mr. Luard : I have already agreed that the performance of the Hong Kong Goy-

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ernment in social services was, on the whole, very good. It is true that the Hong Kong economy has, on the whole, been very successful. However, the measures that I described are a form of socialism which could well be imitated by other countries in Asia.

Mr. Ashley: Without defending the Hong Kong system of private enterprise, may I ask my hon. Friend whether he is aware that there are 15,000 refugees in Hong Kong and that their presence places a heavy burden on the social services? Does he agree that the best way to im- prove that situation is to persuade other countries to accept more refugees than Hong Kong and Britain have done?

Mr. Luard: I agree with my hơn. Friend. He knows that we have made approaches to a number of Governments asking them to take a larger number of refugees from Indo-China. I hope that we shall succeed in getting better offers from other countries.

Vietnam

6. Mr. Townsend asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on Great Britain's relations with Vietnam.

But

Mr. Luard: The United Kingdom has full diplomatic relations with Vietnam. After the end of the Indo-China war, relations began to improve and there was a growth in trade and commerce. since 1978 Vietnamese policies on human rights, over the exodus of boat refugees and in relation to Cambodia have caused us increasing concern. We have made this

known

the concern

to

Vietnamese Ambassador in London on a number of occasions and in Hanoi, and recently de- clined on these grounds to provide further bilateral aid, apart from humanitarian and disaster aid.

Mr. Townsend: How did the Govern- ment blunder into agreeing to pay £7-4 million of British taxpayers' money to Vietnam between now and the middle of next year, bearing in mind that that coun- try is now a virtual satellite of the Soviet Union? It despises the West, it recently invaded its neighbour and it has an atro- cious record on human rights.

Mr. Luard: I understand that my right hon. Friend the Minister of Overseas

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