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Sir
Mr. Bowden again asked Sir Arthur Snelling to reply. Arthur said that this was an extremely difficult question. He felt that a solution should be found in Hong Kong, in that there existed a good deal of short and medium term finance in the Colony, and Hong Kong depositors should be persuaded and encouraged to put their money into long-term development projects. If Great Britain were to assist, she would find herself borrowing from Hong Kong on short-term to lend to Hong Kong on long-term.
Mr. Paul Lim remarked that there were sources for long-term finance with low interest rates, i.e. the World Bank and the Asian Development Bank. He pointed out, however, that Hong Kong was not a member of the Asian Development Bank, and the decision to join rested with the Hong Kong Government.
Mr. Sorby said that it had been made perfectly clear to Hong Kong that the Colony would be most unlikely to be a beneficiary of the Asian Development Bank. He then reported that Hong Kong had recently received an invitation to join the Asian Development Bank, and Mr. J.J. Cowperthwaite, the Financial Secretary, who would be visiting Tokyo next month, would take up the matter there.
Mr. Cumming added that, the realities of the situation were that it was virtually impossible to obtain long-term finance from any source in Hong Kong over, say, a maximum period of 4 years, and there was certainly no possibility of obtaining it at the sort of rates it was available at in neighbouring countries. Furthermore, it was wishful thinking to even su gest that the public in Hong Kong would be interested in long-term low return investment. The situation, however, was slightly different insofar as Government funds were concerned in that Government do not necessarily have to look only to the direct return on money invested in industry. There were indirect returns in such things as increases in the national product and all that it brought in its train, such as a better spread of wealth, greater taxation, etc. etc.
Dr. Chung further illustrated the situation by pointing out the fact that bank loans in Hong Kong, always with the escape clause incorporated in the agreement, could be called back at three months' notice. This, he said, would inhibit the use of the loan, even for medium-term development projects.
Mr. Bowden concluded the discussion by saying that the solution should be sought with the local government, perhaps having another working party to investigate the possibilities.
5.
HOURS OF WORK
as follows:
The final topic of discussion was presented by Mr. Faul Lim
"We are aware that there has been pressure from the International Labour Organisation on the U.k. Government regarding the reduction of hours of work for women and young people in Hong Kong. We would like, therefore, to bring up our views for your consideration.
"Hong Kong's industry has only 15 years of history, an it has done much to give the people of Hong Kong a better standard of living.
"Legislation has been enacted to provide 6 days paid holiday, 12 days medical leave with pay per year, and 60 hours a week work for women and young persons. In fact, the actual provisions are very much better than that, inasmuch as regular workers normally get extra pay at Chinese New Year, subsidised meals and often housing, free medical
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