TNAG-1051-FCO40-1301-China-s-economic-relationship-with-Hong-Kong-1982 — Page 39

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CONFIDENTIAL

CONFIDENTIAL

DESKBY 1510300Z

FM HONG KONG 150950Z DEC 81

TO IMMEDIATE FCO

TELEGRAM NUMBER 1129 OF 15 DECEMBER

20

YOUR TELNO 935: PQ'S OF 9.12.81

HICK

07111

17 DECIVO!

INDUY

SUGGESTED REPLIES TO A, B AND C.

No

17122

Ronn

QUESTION A.

~1

ECONOMIC COOPERATION BETWEEN HONG KONG AND CHINA IS DEVELOPING STEADILY. A GROWING NUMBER OF HONG KONG FIRMS ARE ENGAGED IN COOPERATIVE VENTURES IN CHINA, PARTICULARLY IN GUANGDONG AND THE SHENZHEN SPECIAL ECONOMIC ZONE. CHINESE GOVERNMENT AGENCIES CONTINUE

O FOSTER TRADING AND OTHER ECONOMIC LINKS. I FIND THIS VERY SATISFACTORY.

QUESTION B.

DURING THE FIRST 9 MONTHS OF 1980, 69,501 ILLEGAL IMMIGRANTS FROM

CHINA WERE ARRESTED IN HONG KONG. THE EQUIVALENT FIGURE IN

1981 WAS 8,445. THE DAILY AVERAGE OF ARRESTS FOR THE WHOLE OF 1980 WAS 225 AND FOR THE FIRST 11 MONTHS OF 1981, 30. THE ESTIMATED

NCREASE IN HONG KONG'S POPULATION ATTRIBUTABLE TO THIS IMMIGRATION IS 107,000 IN 1979, 64,000 IN 1980 AND 5,000 IN 1981.

QUESTION C.

See /22

''SINCE 1980 BENEFITS INCLUDING INCREASED RATES OF COMPENSATION FOR INJURY AND DEATH HAVE BEEN APPLIED TO ALL EMPLOYEES. FURTHER AMENDMENTS TO THE EMPLOYEES COMPENSATION ORDINANCE WILL COVER COMPULSORY INSURANCE AND SIMPLIFIED COMPENSATION PROCEDURES. THE EMPLOYMENT ORDINANCE HAS BEEN EXTENDED TO COVER NON-MANUAL WORKERS EARNING UP TO HK DOLLARS 6,000 PER MONTH AND TO PROVIDE PAID MATERNITY LEAVE. 47 ILO CONVENTIONS HAVE BEEN APPLIED IN

HONG KONG,

2. SUPPLEMENTARIES.

(A) SICKNESS BENEFITS.

THE EMPLOYMENT ORDINANCE WILL SHORTLY BE AMENDED TO IMPROVE THE PROVISION OF SICKNESS BENEFIT FROM 1 DAY FOR EACH MONTH OF SERVICE

UP TO A MAXIMUM OF 36 DAYS, TO 2 DAYS FOR THE FIRST 3 MONTHS OF SERVICE AND THEREAFTER 4 DAYS PER MONTH TO A MAXIMUM OF 120 DAYS.

(B) INJURY AND DEATH BENEFITS.

THE EMPLOYEES COMPENSATION ORDINANCE PROVIDES GRANTS FOR DEATH

AND INJURIES RESULTING FROM EMPLOYMENT, SEPARATE PROVISION WILL NOW BE MADE UNDER EMPLOYMENT ORDINANCE FOR DOLLARS 3,000 GRANT PAYABLE BY EMPLOYER AFTER QUALIFYING PERIOD OF ONE YEAR'S EMPLOYMENT IN CASES OF DEATH NOT COVERED BY OTHER PROVISIONS.

CONFIDENTIAL

WHERE