NOTHING TO BE WRITTEN IN THIS MARGIN

3

CONFIDENTAL

Why

not?

14 Hồng Kong and the United Kingdom..

But he was

presumably right in thinking that there was a greater

gap in social services and education. Sir David Trench

agreed. Some things were impossible, for instance

contributory pension schemes could not be accepted in

absence

Hong Kong due to the business of long term security.

Hong Kong's medical schemes were cheaper than those in

Britain. Shall contributions to the health service and

to schooling did no harm. There was no taxation

specifically for education. On education the problem

was that one in four of the population were being

educated; 40% of the population/were under 15.

12. Mr. Stewart said that on labour legislation he under-

stood that there was a case for greater penalties

for infringements.

Sir David Trench explained that the

Government could not get the courts to impose the

maximum fines, which were adequate. Mr. Roberts explained

that the courts acquitted people rather than applying

minimum fines. The Government had not had much success

in persuading the courts to increase penalties.

perhaps 13. Mr. Stewart said that labour conditions were/some-

thing that the Communists might exploit. Sir David

Trench pointed out that since they were better than in

China there was a limited field for this. Sir John

Cowperthwaite pointed out that labpur legislation was

not popular with the workers themselves who wanted to be

free to make as much money as they could. Rules against

night work for women had been unpopular. Fortunately

legislation was coming at a time of rising wages.

Sir David Trench pointed out that it was very difficult

to police the legislation.

place in smaller factories.

Most infringements took

In general Hong Kong's

Labour legislation was not in any way out of dak

Corruption

14. Mr. Stewart said that he understood that the Hong

/Kong

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