CONFIDENTIAL
3. There is no Labour Attache at the U.S. Consulate- General in Hong Kong although it is known that an officer there concerns himself with labour matters generally. It is not of course the normal practice formally to designate the specific functions of members of Consular Missions here, and we have no knowledge of any request to appoint a Labour Attache as such to the U.S.C.G.
4. Subsidiaries of American companies and of companies from other countries are operating in Hong Kong. Confidential information has been given to us but it would be a breach of confidence to disclose this information even on the basis of the types of industries in which they operate. But the overall figures are as follows:
(a) Wholly or partly subsidiary American firms or
firms owned or partly owned by American nationals:
Commercial 235 Industrial 76
(b) Others:
Commercial, at least 9 Industrial, at least 53
We consider that even this information should not be provided to Mrs. Jager. Although the difference in wage rates is one of the several reasons why American subsidiaries have established themselves here, there is a risk that the American Trade Unions might use the above information to our disadvantage.
5.
Hermann will be briefed by the Commissioner of Labour on local conditions before he leaves Hong Kong. This had already (7been? arranged) and I would like to defer considera- tion of a special visit by a labour expert until Hermann has had the opportunity of assessing, on his arrival in Washington, the extent to which further information or assistance might be required from Hong Kong.
[Passed to D.S.A.0. for transmission to
Washington]
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