CONFIDENTIAL & PERSONAL

This is

UK/Hong Kong Relations

6.

The Governor's suggestion that the PUS might speak to

Sir Y K Kan on this matter is a useful one. The PUS might take the following line:

hardly

Recensary

bres meeting.

in a

(i) We recognise the substantial progress made in Hong Kong

in some respects over recent years and that we recognise

that the Government there must work in a sociological

and economic environment very different from the United

Kingdom.

(ii) Nonetheless, the Secretary of State is bound to be

mindful of the concern here about certain aspects of

Hong Kong society, most notably where, as in the case of

working conditions in industry, the standards fall below those of Hong Kong's neighbours.

[(iii)It is very important that Hong Kong will, for instance,

shortly introduce a weekly rest day (as opposed to the present 4 rest days a month); additional public holidays (from 6 to, say, 10) and paid annual leave. All these are common in the region and we look to the Executive Council to support the Governor's attempts to introduce these measures in Hong Kong.7

increased transfer payments to (iv) Taxation reform, and the introduction of Provident Fund

poorer members of the community

help

The Ingements are other instances where progress will need

to be made.

7. Sir Y K Kan may well defend the measures at present being taken as adequate, or at any rate all that Hong Kong can afford; and he may seek to argue that Hong Kong affairs should not be susceptible to political pressures within the United Kingdom. The PUS might reply that Ministers are certain to feel that these measures a re indeed right in themselves; and in Hong Kong's own interests. The new generation growing up in Hong Kong may well grow increasingly dissatisfied with working conditions out of line with practice elsewhere in the region; and with ever-widening disparities of wealth which Hong Kong's economic success is creating. This presents evident dangers to the current industrial peace which

-3-

CONFIDENTIAL & PERSONAL

Page 90Page 91

Share This Page