Mr. H.H. Stewart. Hong Kong Department.

(56)

to note

Regarding your minute of 9 February overleaf which was waiting for me when I got back from Cairo this weck, there is one essential piece of

The concession background which ought to be recorded.

on overtime was made roluctantly in order thut final agreement could be reached on the reduction of hours

It was also of work of women and young persons.

made in the belief that the full extent of the concession would not be used since it would involve the paymont of overtime. It was also clearly under- stood that at the end of the transitional period

I there would be a review of permitted overtime. quite agree with the Commissioner of Labour that there cannot be a sudden reversal of permitted over- time at the end of the transition period. I would expect the rates to be reduced back to 100 hours (the permitted level in this country) over a period of three or four years. I think, however, that it would be too late to begin looking at this overtime question at the end of the transitional period. I think it needs keeping under review and the authori ties in Hong Kong made aware that we are watching the position closely. We cannot, of course, press for a reduction of overtime before the transitional period ends, since this was part of the package deal; but if there was evidence that few employers were taking advantage of the relaxation, an early reduction would, I think, be a legitimate matter for negotiation. So far, however (as you yourself point cut) this latter situation seems unlikely to arise.

2. In the light of the foregoing, I think that we are justified in proceeding as recommended in paragraph 5 of my minute of 19 January.

"

(G. Foggon)

19 February, 1970.

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