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the Legislative Council a more effective body. He has also covered our other point about not exaggerating the extent of the change in the social composition of the Council.
Labour Legislation: (FCO Tel No 805 and paragraphs 8 and 9 of Hong Kong's telegram)
9. The Governor evidently wishes to stick to the text in Hong Kong Tel No 970 so far as paragraph 7 of his passage on labour legislation is concerned. The only change he proposes is that,
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in deference to our views, the phrase "there is not very far to go to reach the standard we have set" would become "we have to go farther
This change is an improvement. The Governor has confirmed paragraph 8(c) of his telegram that he is confident about the reliability of the wage statistics on which he based his earlier statement about comparability of incomes. There is thus now nothing between us on this point. The Governor says that he does not like the phrase "than our neighbours give to theirs" at the end of the second paragraph of the text in FCO Tel No 805. However, it seems to me that the same thought is implicit in the corresponding part of the text in Hong Kong Tel No 970, and I do not think we need pursue this point.
In short,
I think a reversion to the text in Hong Kong Tel No 970, except for the small amendment already noted, is acceptable.
10.
The Governor has also slightly amended the previous paragraph (paragraph 6) in the version of the passage on labour legislation
I which he gave to Lord Goronwy-Roberts in Hong Kong in August. think that his amendment, which has the effect of mentioning that Hong Kong is not aiming to raise its standards to the level of those in Japan, is unobjectionable.
11.
I recommend that we should thank the Governor for taking account of our amendments/comments, and say that we are prepared to accept his compromise proposals on those of our points which he has not taken fully (paragraphs 3 and 9 above). At the same time, I think we should tell him that we have reservations about the criteria for public assistance to able-bodied males (paragraph above). I accordingly submit a draft telegram.
4 October 1976
The OLA concurs.
J. F. Millon
DF Milton Hong Kong Department CONFIDENTIAL
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