CONFIDENTIAL

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CONFIDENTIAL BACKGROUND NOTE ON HONG KONG

1.

The population of Hong Kong, a territory which, apart from its harbour, is devoid of natural resources, has increased from 600,000 to about 43 millions in the last 30 years. This has created enormous social problems. The Hong Kong Government deserve considerable credit for the manner in which they have coped with these problems. Its achievements with regard to public housing, medical and health services and education and, in recent years, in improving conditions of employment and social welfare services, have been considerable. At the same time, both HMG and the Hong Kong Government have fully recognised that much remains to be done. Both Governments have agreed that Hong Kong's rapid recovery from the international trade recession of 1974-75 provides the opportunity to make good on past deficiencies and to make a substantial move forward.

2.

It is against this background that HMG and the Hong Kong Government have over the past year reviewed in detail plans for labour and social reform and institutional development in Hong Kong. Some of the changes agreed upon as a result of this review have been announced during the past months. Further proposals were made public by the Governor of Hong Kong in early October. Others will be considered as soon as possible thereafter.

3.

Important recent changes in the labour field, which the Hong Kong Government have already taken steps to implement, are that an Apprenticeship Ordinance has been brought into force providing for compulsory apprenticeship in designated trades; levies have been introduced on industry to provide training for workers in building and garment-making; the number of statutory holidays a year will be increased from 6 to 10 as from 1 January 1977; and further protective regulations have been made relating to guarding and operating machinery, operation of goods lifts, flammable liquids and work in compressed air. An expert from the Department of Employment has completed a review of protective regulations and factory inspections. Significant social changes already in train include extensive programmes in the fields of education, housing and medical and health services. The Legislative Council has been expanded and 8 new Unofficial Members have been appointed with a view to ensuring that opinion in the Council is more representative of all sections of the community in Hong Kong. The new members include a trade unionist and three others closely associated with the working population of Hong Kong and their problems. A system of paid allowances to Unofficial Members has been introduced.

4.

At the opening of the current session of the Legislative Council on 6 October, the Governor announced "a new and special emphasis on labour legislation and social welfare" and stated that the Government would achieve a level of legislation at least broadly equivalent to the best in neighbouring countries well within five years. Measures announced for the current session of the Legislative Council include:-

A Labour

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CONFIDENTIAL

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