CONFIDENTIAL

Reference...

Note by Lord Shepherd on his visit to Hong Kong.

EXTRA C T.

135

18. There has been and probably still is, a marked

reluctance by the Administration to move in the field of

labour and social reform. Three reasons may be ascribed

to this:

(1) Fear of upsetting the competitiveness of Hong Kong

industries.

(ii) A traditional attitude which assumes that the Chinese,

having been granted the basic needs, should be left

alone to develop their own standards.

(iii) A lack of detailed knowledge and expertise on how

reform might be achieved.

Let us examine these reasons

On competitiveness;

this

point has certainly been valid in the past and still is to a

certain extent; but with the expansion and development of

industry there would now appear to be room for gradual progress

in the field of labour and social reform. The traditional }

attitude may have made sense some years ago. Not today. There

is a new generation of young Chinese, born in Hong Kong, who,

through education and contact with Western ideas, will want

to know what Government proposes to do for them. Unless the

energies of these young people can be channelled they will become

an even increasing source of trouble makers. Lack of detailed

knowledge on how reform might be achieved still exists, This

has bred an atmosphere of timidity and caution which, in present

circumstances, needs to be changed, and changed quickly.

RECEIVED IN

ARCHIVES No. 63 23 NOV1967

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