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their costs would be so increased thereby as to prejudice their international competitive position, particularly if they find they must attempt
to maintain present take-home pay for 20% less work (again, in distinction, there was in 1959 a substantial gap between Hong Kong export prices and internationally competitive ones now there is not). Labour, on the other hand, is concerned because in general it is suspicious or resentful of any apparent threat to its earning capacity and knows that there is no guarantee that take-home pay would be maintained in thé light of the international competitive position. Labour in many fields is still quite close to management and is often aware of managements problems in these respects. Comparison with the legislation of other Asian countries is not an argument which carries much weight here as it is widely believed amongst local industrialists who should be in a good position to know, that such legislation is not generally or vigorously enforced.
6.
Your paragraph 6. In practice, 100% of female labour in cotton spinning and over 70% in cotton weaving is working an eight hour day now.
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Your paragraph 7. I would not object to the information in my savingram No. 538 being made public if thought necessary, provided the Executive Council is not at this stage publicly committed to anything further. I would prefer no mention of this if it can be avoided.
8.
From my point of view, the important consideration in all this is not speed but the need to make this legislation, when introduced, as effective as possible by gaining for it the maximum possible acceptance and co-operation of labour and management. Without this, the problem of enforcement will be extremely difficult and much of the benefits of the legislation will be lost.
Distribution Hong Kong & West Indian 'a' Dept.
International and General Dept.
D
Copy also sent to:-
Foreign Office
Mr. Foggon
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