FCO_49_623_PLANNING_PAPER_ON_HONG_KONG_1976 — Page 3

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Internal Policies (Section V)

5. We have rearranged the material in accordance with Mr Lipsey's assessment of the relative orders of priority to Ministers. We have included target dates for the realisation of the various components of the programme. On Hong Kong's suggestion we have included a new Annex (D) setting out the existing plans for social development in Hong Kong. This has been redrafted in

brief tabular form.

་

6. Labour Legislation (paragraph 21). Since the drafting of the original Planning Paper, the Hong Kong Government has prepared plans for further labour legislation along the lines we suggested, e.g. for increasing public holidays and weekly rest days; and for introducing paid annual leave. These help presentationally, provided the target dates are adhered to and there is no repetition of the difficulties over the introduction of limitations on the hours of work for female labour which was seven years in gestation. It also remains very important for Hong Kong to reconsider the introduction of a minimum wage and statutory hours of work. The latter in particular is likely to become of increasing concern to the TUC.

7. Fiscal (paragraphs 22-25). We sought a compromise here. between the Hong Kong insistence on the traditional approach of considering the components of the social programme on the assumption that the money would be available; and the Planning Paper approach which sought to break with past policy by first setting a fiscal target (25% of the GNP). The object of the latter was, of course, to avoid future arguments about the scope of the social programmes given Hong Kong's traditional self-imposed financial limitations. The compromise is from our point of view not quite as satisfactory but, combined with the setting of target dates for the introduction of social spending measures, I believe we have a workable policy. (Lord Goronwy-Roberts will, in any case, wish to keep up pressure on the fiscal and revenue fronts the record of his meeting with the Colonial Secretary on 11 June.) 8. Social (paragraphs 26-29). Here we have laid much greater stress on transfer payments and rather less on

programmes

for housing and education. This is partly in response to

de

see

Mr Lipsey's advice on the relative importance of these matters

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