CONFIDENTIAL
3-
11.
Some progress is being made in our programme of labour legislation. Trade Unions continue to be motivated principally by political interests, but some slow progress is being made in the establishment of consultative committees.
12.
Early in 1968 we established the City District Officer scheme with the appointment of ten administrative officers in small offices throughout the urban areas. Their responsibilities are to explain government policies and to act as the articulate spokesmen of those who need help or redress. "uncles", as sections of the press rather regrettably insist on calling them, have been well received and should play a useful part in welding the community together.
13.
These
Substantial problems remain to be overcome, the most important being the administration of resettlement estates; the very large number of hawkers who provide a useful service, but create a serious health and traffic problem; and the large numbers of illegal mini- buses which came into existence when normal bus services were unable to meet public demand.
14.
These problems, together with deficiencies still to be remedied in our social services, provide an opportunity for Communist exploitation which is not being overlooked. The Communists have reduced the virulence of their propaganda attacks and have progressively sought to restrain their supporters from openly breaking the law, but their objective of dominating the Government remains unchanged. The adoption of a softer line has not helped them to maintain the morale of hard-core Communists. During the disturbances some 15,000 workers in the government service or in the public utilities went on strike or were dismissed. The Communists paid large sums in "strike pay" and then sought unsuccessfully to enforce the reinstatement of the "strikers" without loss of benefit or seniority, but were eventually obliged to put pressure on the "strikers" to find their own jobs. By the end of the year the majority had succeeded in doing so, and strike pay had virtually stopped, with the result that numbers of workers deserted their unions.
15.
There has on the other hand been a disquieting expansion of Communist schools, which, while catering for only about 2% of the school population, showed a 25% increase in places during 1968; plans are in hand for further expansion. Communist schools can cater for only about one third of the children from Communist families and they attract few from outside the fold. Under pressure from parents, some improvements
have been .......