real wages of workers in the manufacturing industries have

risen by an average of 5.7 per cent per annum. A wide-

ranging legislative programme, including an Industrial

Relations Act and the establishment of Labour Courts, is under

consideration.

Request for Loan from HMG for extension of Airport

8.

The difficulties in the way of granting a loan for the

development of the airport have been explained to the Hong

Kong Government.

Britain's Entry into EEC

9. The Parliamentary Under-Secretary did not discuss this

matter during his visit since it had previously been examined

during the visit in September of my honourable Friend the

Chancellor of the Duchy of Lancaster.

Confrontation Prisoners

10. The sentences of the sick prisoners recently released

/the

were remitted by the Governor on humanitarian grounds under his

prerogative powers conferred by the Letters Patent.

Link between Confrontation Prisoners in Hong Kong and British

Subjects detained in China.

11.

Just as we are concerned about British subjects detained

in China, so have the Chinese expressed concern to us about the

Communists serving prison sentences in Hong Kong. But I must

make it clear that the sentences of long term prisoners are

remitted solely in accordance with the normal procedure under

prison rules for the review of prisoners serving long term

sentences.

This procedure does not affect the use of the

Governor's prerogative powers.

Governaship

12. The announcement that Mr. C. M. MacLehose, presently

Ambassador in Copenhagen, is to be the next Governor of

/Hong

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