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5. Although the Hong Kong Government are bearing the major part of the cost, the terms of reference make it quite clear that Professor Turner is reporting to the British Government.

6. The present state of labour relations in Hong Kong is charac- terized by a multiplicity of small ineffective unions. There is little collective bargaining as such, though consultation does take place. In his interim report Professor Turner found that there were no social, economic or labour market reasons why an effective labour movement should not emerge; nor were there any cultural or serious legal obstacles. But the existing trade union organization is unwilling or unable to take up that role. His final report should explain why this is so, and recommend the measures to rectify the position.

7. In the meantime, the Hong Kong Government have been carrying out an extensive programme in recent years to improve labour conditions. Among other improvements introduced in the past two years, provision has been made for compulsory rest days, paid annual leave and improved sickness and severence payments. Safety legislation has been extended. Overtime for young people has been progressively abolished. The Public Assistance Scheme has been improved and a recent Green Paper on social welfare includes proposals for a voluntary contributory sickness, injury and death benefit scheme. In addition, compulsory and free education up to the age of 15 will help put an end to child employment in all sectors of the economy (it is already illegal in the industrial sector, and will become so in other sectors by 1980).

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