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special value and we should seek to make a larger allocation of places to Hong Kong. As an immediate aim we should make available 8 places a year instead of the current 4. (I would not advocate a special course for Hong Kong Assistant Labour Officers as much of the value of the present courses derives from the variations of background and experience of candidates drawn from all parts of the world).

59. The Factory Inspectorate now has the services of a highly experienced officer from H M Factory Inspectorate and an improve- ment in the quality of training can be expected. This officer will also be responsible for a full-scale review of legislation on the safety, health and welfare of workers in industrial employment. There have been some changes recently in training arrangements for factory inspectors in Britain and the Commissione: of Labour is being advised of these).

60.

In general it can be said that the quality of organisation and performance of the Department and its staff is excellent. Newspaper sniping at the Department has died away and the positive publicity of the Department (including the work of the Industrial Safety Training Centre and participation in the large scale Industrial Safety Exhibition held on the occasion of the Chinese Manufacturers' Exhibition in January 1974) has much improved the Department's image. The Labour Relations Service of the Department has continued to make an effective and much appreciated contribution to industrial peace through its patient handling of disputes and grievances and the encouragement of joint consultation. The range of publications - - all available free, in English and Chinese issued by the Department is superior to anything I have seen outside Western Europe.

Future Priorities

61. The enactment of the legislation already described, taken together with additions made since 1967 in Hong Kong's labour legislation, will significantly improve the conditions of the work force and help to reduce industrial friction. The contribu- tion this should make to improved productivity is an additional - and often ignored - gain. But the pace has been slow and it might be well to consider the next phase and what objectives shouli be over, say, the next two to three years.

62.

(a)

(b)

The following is proposed for consideration in Hong Kong:-

Review problem of social security with particular reference to the aged on lines suggested in paragraph 49. (The establishment of a new Working Party would be justified).

Review problem of wages and possible revised minimum wages legislation. (This was a recommendation of the 1967 Inter-departmental Working Party on Social Security see paragraph 49).

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