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achieve conditions at least up to [comparable to] the
guppe standards excluding Japa best Asian equivalents (eg Singapore) within 5
•
years. This should include better provision
for rest days and statutory holidays and introduction of compulsory holidays with pay, the prohibition of employment of people under 14 years of age by 1978 and of people under 15 by 1980 (ie as soon as there are assisted secondary school places available), wider coverage by safety regulations and improved sickness benefit and redundancy payments. The absence of statutory hours of work or provision for overtime are also particular subjects of criticism. The
more tapy programme must also ensure steady progress in the appli- cation of ILO Conventions. Although significant progress has been made in labour legislation in recent years, it is essential to be satisfied that this will continue along the lines and within the timescale suggested above. This is particularly important because the Trades Union movement is weak and heavily fragmented. Such membership as is independent of the main groups of Communist and KMT is very small indeed, ie about 15% of total union member- . ship and 21% of the work force.
22. The programmes outlined in paragraphs/below will,
26-28
of course, add an extra financial burden, particularly at a time when the Hong Kong Government has already. undertaken a number of other programmes essential to the development of an urban society: eg, organised recreation and other services for youth; a modern communications system including an ambitious underground railway; and urban renewal and improvements (see Annex D). We have some doubts of the Hong Kong Government's ability to finance this programme without an increase. in the level of direct taxation or recourse to borrowing or probably both. As a preliminary step, a Committee has been set up to make recommendations about reform of the fiscal
system, and these are expected by early next year. We cannot at this stage expect proposals from the Hong Kong
Government on the fiscal measures that will then follow.
The Hong Kong Government considers that the correct approach
to forward
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