7.

however, to the absence of a contributory social security framework, particularly in relation to the aged. The Governor has told us that this aspect is being re-examined, taking the report of the 1967 Working Party as a basis. However, the general opposition in Hong Kong to a contributory scheme (evidenced in part by the neglect of the 1967 Working Party Report) justifies us in seeking somewhat firmer assurances than are given in the reply, that the problem will be looked at comprehensively.

(a) Paid Holiday Entitlement. Legislation entitling

workers to 6 paid public holidays (out of a total of 17) has only recently been enacted. The Labour Adviser has suggested that the future legislative programme should include legal entitlement to paid vacation leave. The list of future priorities has been "generally agreed" by the Hong Kong Government but it would be valuable to emphasise the importance we attach to this particular proposal.

These comments, for which I am indebted to the Labour Adviser and with which I agree, suggest that we should seek further and early discussions with the Governor on outstanding problems. The opportunities for this are at hand in Sir D Watson's visit to Hong Kong at the end of May and in the Governor's own visit to London in mid-June. There is UK political interest in the Labour Adviser's report, which has been mentioned in Parliament; but I recommend that we should regard both it and our exchanges on it with the Governor as internal and official communications, not for general discussion. We have been careful to keep our relationship with the Government of Hong Kong on this basis, and it is undoubtedly the best way to get action. When the discussions with the Governor are complete and we have received his promised general despatch,

CONFIDENTIAL

/I would

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