second of the criteria mentioned above, the question of

overtime. On this, the absolute maximum which would

be acceptable to Ministers would be 300 hours per

annum for the transitional period. Working within this

limit, it might help to fit in with the phasing if the

requirement

existing 26 week agneament on overtime were suspended

during the transitional period and this, too, would be

12is

accepted by Ministers, provided that it was clearly

and the existing cornet's on overtime understood that the requirement/would be reintroduced

at the end of that period.

5. As regards the third criteria, it would very

greatly help in meeting presentational difficulties

here if the actual phased programme were embodied in

legislation, presumably in the relevant Regulations or

Orders to be made as soon as the recently introduced

Bill to amend the Factories and Industrial Undertakings

Ordinance has been enacted. We can see no technical

reason why this should not be done even though the

actual drafting may present problems; and Ministers

attach very considerable importance to this particular

aspect.

Labour Management Relations

appent from techinimal difflemetiè's

6. It seems clear that the deep political split

dividing the trade union movement in Hong Kong would

make it very difficult to achieve effective compulsory

conciliation by legislation; but as a step in the

right direction would it not help if legislation were

enacted providing for the compulsory notification of

to us to he

disputes? This would seem, about as far as legislation on this subject could be taken.at the present time.

Expansion of Activites of Labour Department

7. We are not absolutely clear about your

requirements in this respect. We have learned privately

that Goodwin would definitely be interested in coming

to Hong Kong and we understand from the Governor

that Hong Kong would be glad to secure his services.

Since Goodwin returns to the U.K. this month perhaps

you would let us have particulars of the appointment

that you would offer him, including the terms and duties

NOTHING TO BE WRITTEN IN THIS MARGIN

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