CONFIDENTIAL

Reference....

I note from the policy criteria set out in paragraph 16 of the covering memorandum that it is considered it should be possible for compulsory procedures to be introduced for serious disputes, but not compulsory solutions. This would seem to imply (and this is not unusual in Hong Kong) that nothing need ever come of the procedures so carefully set out in the law. In other words, it seems to give lip service to the need for machinery for the settlement of trade disputes which in practice are unlikely to be resolved by the use of this machinery!

In

7. If we are to pursue actively the deposit of a declaration of application of Convention 98 to Hong Kong, whether of full or modified application, the next step would seem to be to ask the Government to provide a trial report on the basis of the current legislation. The reports we are now exarining do not extend beyond the end of June 1974 and no account is taken in these reports of Amendement Number 2 to the Employment Ordinance. calling for a trial report, however, we should ask the Government of Hong Kong to bear in mind the effect, if any, the Labour Relations Bill, as at present drafted, is likely to have on the application of Convention 98. I would also suggest that the Government be asked to explain the apparently discriminatory treatment of employers' and workers' associations as relected in the minutes of the 35th meeting of the Executive Council.

I am copying this minute to Mr Foggon.

8.

7 Lovember 1974

Miss M M Swan

Gibraltar & General Department

K 273 MA 246

CC: Mr Foggon (OVERSEAS LASCUR ADVISER)

CONFIDENTIAL

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