and a strong Manufacturers' organisation. They seem to have learnt little from the social history of this country or any other developed country in this respect.
The Commissioner of Labour in the colony introduces, from time to time, proposals governing factory legislation and there is a really comprehensive Factories Act, very similar to that in the United Kingdom, but unfortunately, due to there being so few factory inspectors, and the fact that there are such a large number of small units of production in the colony, the establishment of these standards in the various factories is very difficult to maintain. It is anticipated, by legislation, that the working week is to be reduced to one of 48 hours by 1972, with a maximum number of hours overtime of 300 per year, but in industry that already has a 48 hour week, they will continue to work the 48 hour week and no reduction will be applicable to those industries, by law. Further information in respect of hours of work, workloads, etc., will be found in the appendices at the end of this report.
By law, no factory in Hong Kong may employ a person under 14 years of age and persons between 14 and 16 must work 48 hours per week but they are not allowed to work overtime until they are 16 years of age. We saw some very young-looking 14 year olds and 16 year olds during our visit to the colony.
The factory is accepted as a place using power machinery or an establish- ment employing 20 or more people. We were told that there was a great shortage of labour in Hong Kong although when we visited factories, we were of the unanimous opinion that a great deal of labour was being wasted and there could have been a quite easy attainable increase in production of 122/15% by a more efficient use of the labour available. Hong Kong itself, as a labour market, is in a most peculiar position since it is the only colony or country having a com- pletely free money market and the advantages of imperial preference, together with being an under-developed country in respect of GATT. Because of these advantages, coupled with low wages, they are able to gain entry into a number of markets on very beneficial terms.
We again emphasied to the Government officials that encouragement should be given to the establishment of the free Trade Union movement; that there should be greater co-operation between themselves and the trade unions and one step in this direction might very well be the establishment of a com- pletely independent industrial tribunal where problems and disputes could be taken in the knowledge that they would be discussed and conciliated upon by an independent person or persons.
Following our discussion with the Commissioner of Labour we were privileged to meet Mr. Purvis, the Senior Officer in the Commerce and Industry Department of the colony. The responsibility of this department is to attract capital and industry into the colony and they are responsible for ensuring that the investment policy and law affecting capital is adhered to. The policy of the department for the next few years will be trying to increase the capital investment in the colony with particular reference to American capital, and in this sphere no preference whatsoever is given to any country. All they are concerned about is the bona fide of the person or company wishing to invest capital in the colony. There is no aid given in respect of cheap rents, cheap factories or income tax relief to any person investing in Hong Kong. The fact of the Hong Kong
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