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Mr. Foggon

Confidential

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Reference..

Labour Conditions in Hong Kong

I have at last been able to get down to a reply

to Mr. Holmes' letter to me of 10 August. I find that

there is not in fact much that can be said. There is of course the whole question of the part played (or not played) by the Government in helping labour in the absence of a strong Trade Union movement. I have deliberately not said anything about this for two reasons. First, we do not yet know whether labour relations came up during Mr. Royle's recent visit to Hong Kong. Secondly, I think it would be counter- productive to launch an attack, even in a minor way, on the Hong Kong Government on this front at this particular

time. I hope you will agree.

2. I have made only a passing reference to Mr.Royle's talk with Mr. Gibson, a copy of the record of which is

attached for your retention. We shall of course have to discuss the labour situation with Mr. MacLehose before he goes to Hong Kong; meanwhile, however, I do not think that we would gain anything by sending a copy of the

record of that meeting to Hong Kong.

3. I should be grateful for any comments you may have on the draft letter to Sir Hugh Norman-Walker.

Erlain

E. 0. Laird

Hong Kong Department

16 October, 1970.

HKK 5/3

Mr. Laird.

I agree that there is not a lot that we can say in reply to Mr. Holmes' letter now, particularly as we do not want to take a positive line until after Mr. Royle's return. On the other hand, a short letter now might give away too much (for example, paragraph 6 of the draft). I have suggested one or two modifications but I would see advantage in lying low until the current exchanges about the Trade Union Registration (Amendment) Bill are completed and we know what was said during Mr. Royle's visit.

(G! Fogg on)

20 October, 1970.

Confidential

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