TNAG-0578-FCO40-711-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1977 — Page 43

CONFIDENTIAL

COVERING SECRET

GENERAL

1. The Governor will be aware that, in our judgement, the plan of action set out in the Planning Paper is the minimum which would be

acceptable here.

2. It would be very helpful here to have an early announcement of what the agreed package of reforms is to be. A suitable opportunity might be the Governor's annual speech at the opening session of the Legislative Council in October.

3. An announcement could be represented as a further look at the needs of Hong Kong now that the recent difficulties caused by the recession there have been overcome. We would judge it to be advantageous for the Governor himself to announce the proposals rather than to have them revealed here, e.g. in reply to Parliamentary

Questions.

4. We entirely accept that an announcement could not include any detailed formulation of taxation proposals which would involve anticipating future budget statements. But (see Speaking Note No. 2 under FISCAL below) Hong Kong opinion will, we judge, need to be prepared for changes in general budget strategy.

LABOUR LEGISLATION (para 21, Annex C paras 4-6 and Annex D para 1)

1. We are glad that agreement has now been reached on the legislative programme in Annex D which recognises the importance of progress in

this field.

2. We would like to see a timetable for legislation (where this is not already provided for) as soon as possible.

3. This programme will need to take into account the desirability of progress in applying International Labour Conventions which is now the subject of regular ministerial review.

4.

The Planning Paper also proposes that consideration should be given to the introduction of a minimum wage and of statutory hours of work for men. The latter, in particular, would appear to be essential if Hong Kong is to achieve labour standards at least comparable to the best in the region.

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CONFIDENTIAL-

COVERING SECRET