(85261) Hw.

NOTHING TO BE WRITTEN IN THIS MARGIN.

152

Registry No.

Top Secret. Secret. Confidential. Restricted. Open.

Draft. LETTER/

Pha

"(148)

To:

Insert Telephone No. & Ext.

when appropriate.

Ernest Thornton, Esq., M.P.

Thank

you

I am ting in reply to your letter of

8 February about the problem of overtime in

Hong Kong.

1872.

7.

Let me say at once that I find your

Indeed

concern perfectly understandable. I was my-

self most reluctant

first put to me

-

when the proposal was

to accept the need for the

proposed extension of permitted overtime.

There were, however, three arguments to which

I felt bound to give full weight.

B.

The first was the need to carry local

employers with us if widespread evasion was to

to be avoided. There is a strong inspectorate;

but, with more than 10,000 registered establish-

ments to cover, they are more than fully

stretched.

ما

Secondly (and perhaps more important) was

the need to avoid a fall in the workers'

incomes. Public opinion had stood up very well to recent events, but those on the spot

qualified to judge advised me that any fall in

incomes would be badly received and might give

the communist unions an industrial opening for

further trouble. The whole emphasis in the

new arrangements was therefore on flexibility.

As regards your proposal for compensatory wage

payments, there is of course no legislative

/ basis

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