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Programme of Labour Legislation

5. Professor Turner said that the Hong Kong Government's programme of labour legislation was continuing to attract opposition. A concession had now been made to the employers over the introduction of one week's paid holiday: the "week" could now be divided up into odd days to be taken along with public holidays. Professor Turner observed that most Hong Kong employees probably found it more congenial to be at work rather than at home and that the compromise made was not surprising. He expected that there would be further rumblings as the programme of labour legislation proceeded - the Governor intended to include new items in his speech at the opening of the 1977 session of the Legislative Council but he did not believe that any of the legislation in prospect would affect Hong Kong's competitiveness. Un the contrary, he thought the result would probably be to improve Hong Kong's efficiency.

Plans for the Second Stage

6. Professor Turner said that he had still to put together his team for the second stage. Dr Fosh would be going out to Hong Kong again and he hoped to obtain the services, for a short period, of one of the top Australian labour lawyers in order to look at Hong Kong's Trades Union Ordinance. He was hoping to complete a draft report on the second stage by the end of September and to discuss it in Hong Kong thereafter. He would let the FCO have a copy of the draft so that it could be shown, if thought appropriate, to the TUC and the CBI. He would have to be in the UK in late October/early November for a series of lectures at Cambridge University and, if necessary, could see the TUC (and the CBI) again at that stage.

Financial Arrangements

7. Mr Stewart said that his objective was to reduce the extent to which the FCO and Professor Turner had to consult over detailed financial arrangements. The funds for the second stage had been lodged with the Hong Kong Government and Professor Turner would have discretion to draw money as he considered appropriate, provided he kept within the guidelines laid down in the letter of appointment sent to him on 21 April.

8. Professor Turner said that it would not this time be possible to make use of Bath University for computing the statistical information that Dr Fosh would be producing. Sydney University's facilities would not be available and he foresaw the possibility of an extra sum of about £1,000 having to be found for computer work. Mr Stewart said that he could not at this stage contemplate seeking authority for an increase in the funds already set aside for the second stage and suggested that Professor Turner should enlist the help of Hong Kong University.

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/Professor Turner

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