CONFIDENTIAL

2.

treatment at the cost of his employer. It will also make an employer responsible for the cost of renewing or replacing a prosthesis or surgical appliance of an injured workman. The former is simple, uncontentious and presents no drafting or administrative problem. But the latter we now realise can only be effected in the circumstances of Hong Kong if the employer at the time of the original injury, who under existing law pays for the first appliance or prosthesis, at the same time pays a deposit to provide for subsequent replacements. Advice is this involves setting up a special fund to hold and administer the deposits. The adminis- trative and legislative drafting sounds to me both complicated and time consuming. A working party is at grips with the detail, and I shall know more about this within the next few weeks, but those concerned are pretty confident this legislation will be enacted by about November.

b) No. 42 - Workmen's compensation (Industrial Diseases) (Revised).

We wish to add silicosis and asbestosis to the schedule of prescribed occupational diseases in the Workmen's Compensation Ordinance and to set up an insurance pool to meet the costs of compensation and had hoped to do this during this session. However after prolonged negotiations the proposals endorsed by the Executive Council proved unacceptable to the Accident Insurers' Association, and this has set back our time table. New proposals will go to Executive Council on 24 May. Thereafter we will have to thrash out with AIA what needs to be covered by legislation and what by agreement. While I am determined to get this through, the subject is as complex as it has proved elusive, and while I hope to see it through this year I cannot be absolutely sure.

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