CONFIDENTIAL

I have not come to any conclusion about what is needed,

as I am uncertain as to whether the difficulties that have

arisen are due to personal or other factors. At the

moment I incline to the former view and hope that the

position will already be righting itself.

20.

Mr Foggon's opinion was that labour legislation in

Hong Kong has very greatly improved, and that all that is

now needed is to keep things moving and in line with the

steadily rising standard of living. So long as this

happened he thought there should be no real difficulty

about defending labour conditions. He asked me to do what

I could to encourage the Department of Labour and to ensure

that their proposals were not unreasonably blocked in the

Secretariat. He surprised me by saying that opposition to

labour legislation had frequently materialised in the

Secretariat even when it had been agreed by the Labour

Advisory Board.

Salaries and Recruitment

21.

The Salaries Commission Report is an excellent point

of departure. I have discussed it at some length with

Sir George Mallaby. He agreed that the crucial problem

for government was to correct the disastrous fall-off in

intake into the administrative class of both local and

expatriate officers and of expatriates into the Inspectorate

of the Police. When pressed he agreed that the proposals

in the Salaries Commission Report, which were the best on

which he could obtain a unanimous report, would probably not

10. CONFIDENTIAL

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