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competitive, with the result that children were forced on to the labour market, giving rise to the much-publicised problem of child labour in Hong Kong. The crash housing programmes, especially before 1964 were inadequate even in the face of the daunting problems posed by the constant influx of refugees from China. these harsh and unimaginative social policies were the result of the Government's explicit philosophy that the private entrepreneur

knows best.

All

4. Why does China stand by?

China's silence over Hong Kong is puzzling. However, it can be explained by the economic advantages of foreign exchange earnings in the Colony, and political advantages of Hong Kong as a contact for the outside world and as a means of leverage over Britain. is therefore clear that, for the foreseeable future, responsibility for Hong Kong rests both in law and reality with the British

Parliament.

It

5. What can be done?

Options of handing Hong Kong back to China, of leaving Hong Kong to its own devices, or of continuing the present bewildered apathy, cannot be defended. There is only one course: to assume paternal responsibility and initiate a vigorous programme of social reform. Specific recommendations are:-

(a) the appointment of a Commission of Inquiry into conditions

in Hong Kong;

(b) the appointment of a House of Commons Select Committee

on Hong Kong to monitor events in the Colony;

(c) reform of the Legislative Council by payment for service,

increasing the size of the Council, and allowing the election of Unofficial Members;

(a) the appointment of an ombudsman;

(e) a review of the system of appointments to advisory boards; (f) initiation of social reform through legislation and other

means such as increasing the strength of the trade unions;

/(g) reducing

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