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frustrated by the rofusal of the Communist Unions to recognise that

Govermont has a role to play in labour relations. Nevertheless,

improvement of conciliation machinery and a strengthening of the of the

Government's Labour Department are matters now under examination.

6. In the face of strong opposition from the Communist controlled

Seanens' Union, a Scanens' Recruitment Office was opened in May, 1966

and is performing a very useful function. It has been of particular value

during the seamons' strike and despite intimidation of seamen, has been

able to provide nost ships sailing from Hong Kong with adequate crews.

Hong Kong Department,

October, 1967.

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