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REGISTRY,
20 September, 1967
Thank you for your letter of 6 September addressed to the Foreign Secretary's Private Secretary about labour costs in Hong Kong. This has been passed to this office for reply as long Kong is the responsibility of the Commonwealth Secretary.
The cheapness of your camera and indeed of many other Hong Kong products, particularly in the plastic, electronic and textile fields, is not due entirely to the cheapness of labour. Most of Hong Kong's industry is comparatively new, developing from foundations laid in 1949 when the Communist accession to power in China drove labour, capital end expertise from the mainland to the Colony; as a result its machinery is very modern and its techniques are of the newest. Large scale production and the innate Chinese skill in these lines contribute further to the cheapness of the product.
It cannot be denied however, that low labour costs contribute also to the cheap selling price. "ages are low by hestern standards, but not by Eastern ones and in general, working conditions in Hong Kong are second only to those in Japan amongst countries in the area. (The index of wage rates has almost doubled since 1949). Nonetheless, more remains to be done, particularly over maximum hours of work and the Government are actively pursuing these matters.
In the present disturbances in long Kong the question of wages and general conditions of employment have not been an issue; it is entirely a political struggle. Despite intimidation, bribery and appeals to blood ties Communist sympathisers have had singulorly small success in winning support and it is probably for this reason that they have now resorted to terrorism.
LAST REF.
#EX]
REF.
118
(D. P. R. Mackilligin)
Private Secretary
MH
B. A. F. Brunskill, Esq.
Wood End,
Watermill Lane,
Pett,
Hastings, Sussex.
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