RESTRICTED

frustrated by the refusal of the Communist Unions to recognise that

Government 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

Soanens' Union, a Seauens' Recruitment Office was opened in May, 1966

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

during the seamens' strike and despite intimidation of seanen, has been

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

Hong Kong Department,

October, 1967.

RESTRICTED

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