5

10.

However, the main point of this introduction is to say that

Hong Kong is a very complex place, and quite a lot which may be relevant

is going on or under process, and that the questions put by my ostensibly

simple terms of reference raise many issues which neither I nor my

colleagues have as yet had time to explore as fully as they should be.

For instance, a question of substantial relevance is the overall

distribution of income, and the actual impact of taxation and social

provisions upon it; the peculiarities of the Hong Kong situation here

make this a point deserving detailed study. Again, I accept (from

personal observation over a period, for instance) that there has

undoubtedly been a very significant rise in the worker's standard of

life in Hong Kong over, say, the last decade. But I am unable to

comment on the precision of the indices available to measure this rise

(except to say that it is unfortunate that data is available only on

wage rates, not on actual earnings) nor on the validity or otherwise of

such common statements as that real wages in Hong Kong are second in Asia

only to those of Japan, because I have not had time to study the data in

detail and especially its methods of construction.

J

11.

Similarly, I understand that before the 1967 upheavals a practice

of regular collective agreement had developed in certain industries

which subsequently collapsed; again there has been no time to examine the

back history of labour relations and disputes or even their present

detailed state in several industries to the extent that one might wish,

to fully understand the present state of affairs. Nor, again, would I

care at this stage to comment on the total effect of all the detailed

labour legislation which has been passed in recent years or is in

prospect, or on the adequacy of the present Labour Department's staff

resources to enforce and apply it beyond the remarks, first, that

whatever their historical effects I do not think the laws bearing on

labour relations are now (taking into account their prospective amend-

ment) a major obstacle to the latters' development in Hong Kong; and

second, that to the best of my observation, present regulations on

labour conditions and terms of employment are on the whole as

scrupulously administered as lies in the Labour Department's power. (I

would certainly say that the enforcement of the regulations relating to

labour conditions is considerably more effective than in many developing

countries with superficially more elaborate protective legislation.)

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