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circumstances were not thought appropriate or because it was judged that those concerned were unlikely to obey any order he might make. It may, however, be wiser to drop this part of the Bill and rely on the existing powers with regard to a State of Emergency. The remaining provisions would still be important as providing for the first time in Hong Kong a statutory basis for conciliation (and voluntary arbitration) in trade disputes. A high priority should be accorded to this much delayed legislation.

Picketing

17. In my report for 1971 I made a detailed analysis of the problem of picketing in the light of incidents that had occurred in Hong Kong during 1970. No special problems have since arisen, although a recent incident involving a show of force by the police underlines the need for the closest co-operation between the Department of Labour and the police in industrial disputes. In the United Kingdom there have been two recent court decisions* about picketing questioning the right of a picket to obstruct a vehicle even if he does no more than seek peacefully to communicate with the driver or any person being carried. Notwithstanding these decisions in British courts, it is recommended that the existing sensible and effective arrangements in Hong Kong for co-operation between the police and the Department of Labour should continue to be relied upon, and that 'obstruction' should not be to: readily assumed or acted against.

Anti-trade union Discrimination

18. "One contribution which the Hong Kong Government could make to the right of workers to organise would be to incorporate in the law some degree of statutory protection for workers against acts of anti-union discrimination". (1971 Report, paragraph 30). Proposals later placed before Executive Council for a suitable amendment to the Employment Ordinance were referred back. Whether there was any basic objection to the proposed legislation is not entirely clear, but one question raised in the discussion in Executive Council concerned the degree of application of Inter- national Labour Convention No.98 (Freedom of Association and the Right to Bargain Collectively) and whether an amendment on the lines proposed would make it possible to apply that Convention fully. As this latter question is a technical one on which there is more than one view, it will be dealt with in correspondence. It is unfortunate that this modest change in the law, which was endorsed by the Labour Advisory Board and which would have reflected favourably on the Hong Kong Government's attitude to workers' organisations, has been referred back. There is little doubt that discrimination exists and that the legislation is needed.

Broome v DPP and Kavanagh v Hiscock

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/Severance Pay Bill

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