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THIRD REPORT FROM THE EXPENDITURE COMMITTEE

industry and commerce, is bound up with the confidence which the de facto accommodation of the British and Colonial Governments and the Peoples' Republic of China provides. We would regret any further altera- tion in the presence of British forces which might affect adversely the all-important confidence in the future of Hong Kong (Q.15).

An Amendment proposed, to leave out from beginning to "In" in line 3.- (Mr. Hooley.)

Question put, That the Amendment be made.

The Committee divided:

AYES, 3

Mr. Frank Hooley Mr. Arthur Lewis

Mr. Julius Silverman

NOES, 7

Sir Frederic Bennett

Mr Bernard Conlan

Mr Geoffrey Finsberg

Colonel Sir Harwood Harrison

Mr. Anthony Kershaw

Mr. John Loveridge

Mr. Nicholas Winterton

Another Amendment proposed in line 13, to leave out "but a withdrawal of British Forces might well force a change of attitude ".-(Mr. Hooley.)

Question that the Amendment be made, put and negatived.

Another Amendment proposed in line 17, to leave out from "elsewhere" to end of paragraph and insert:

"To a very high degree Hong Kong now acts as a sovereign city state in financial and commercial matters with its own representatives to deal with GATT, UNCTAD, the EEC and major trading partners. Some bene- fit accrues to the UK balance of payments from invisible earnings but this is offset by the UK deficit in visible trade which in 1974 amounted to HK $796 million. Hong Kong exports of textiles clothing, electrical goods, etc, to the UK, are serious competitors for firms in the UK and a potential threat to employment here. Labour conditions have come in for major criticism over the past decade and a great deal of child labour is still legal in the Colony. There is no specific legislation applying ILO Convention No. 102 of 1952 which lays down standards for medical care, sickness benefit, unemployment benefit, employment injury benefit, family benefit, maternity benefit, etc. We find it hard to justify the continuing expenditure of money from the hard pressed British taxpayer to uphold law and order in a Colony where there is gross public squalor, immense private affluence, and notorious corruption. If radical social reform is not feasible within a short period of years the complete withdrawal of the British garrison should be considered.”—(Mr. Hooley.)

Question, That the Amendment be made, put and negatived.

Paragraph 5 agreed to.

Paragraphs 6 to 26 read and agreed to.

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