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ordinary worker from the effects of inflation. To the extent that this is true it of course bears on the central questions of Hong Kong's existence; why four million Chinese choose to live there; and why and for how long they will continue to acquiesce in an alien government without representative institutions.
5. The other and more technical side of Foggon's report is also likely to be of concern to Ministers - particularly the fate of items of legislation, such as the Industrial Relations Bill, the Anti-Trade Union Discrimination Bill, the Severance Pay Bill, and the question of the reduction of overtime for Women and Young Persons. On the last point we are somewhat vulnerable, in the light of George Thomas's statement in the House on 24 January 1968 that it was the intention to move to a maximum of 100 hours per annum overtime as quickly as possible after the 48 hour working week was introduced in 1971.
6. We are of course aware of the dangers of arguing from a British to a Chinese context, particularly in the light of the present performance of the British economy. We are also conscious of the handle which this last point gives to those members of the ExCo who may be reluctant to agree to new items of labour legislation on general grounds. But I believe it would be helpful to Ministers, and would get Hong Kong's relationship with the new Government off on the right footing if you could provide us with a commentary on Foggon's report and the action arising from it, in whatever breadth or detail you think right. We would then submit this to Ministers with the report itself. If your comments on the technical or thei more general aspects of the report have to be delayed, I think it would be better to submit with as much of a commentary as you can manage than with none. But this would be a second best. A preliminary summary by telegram would also be helpful in case we have to put the report to them in a hurry because there are more Parliamentary Questions on it to be answered.
Fours -Jedity Joul
Joris
E Youde
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