CONFIDENTIAL
K.271.
P.R.R.
1.2-7110/70 79
-$18/8/20
COLONIAL SECRETARIAT,
HONG KONG,
66
CR 17/5701/69
Dear Land
Mr Kaneo
$6,8.8.20
10th August, 1970.
REF
NEW
REF.
67
83
Please refer to your letter dated 6th May, 1970, addressed to Sir Hugh Norman-Walker who is now on leave. I might make the following comments on your account of Lord Shepherd's meeting with United Kingdom trade union officials.
2.
Labour Conditions.
These are substantially better than the officials appear to have represented. Their opinions should be treated with caution.
3.
There are a number of references to night-work for women. Five textile factories are now operating night-work schemes for women and a further six have been approved. None of these schemes has been in operation for more than a month and it is not possible yet to assess their results.
4.
The reference to "low-cost imports" by the trade unionists throws substantial doubt on the genuineness of their concern about their fellow-workers in Hong Kong, and arouses serious suspicion that their real motivation is a desire to cause increased production costs in Hong Kong and to reduce the competitiveness of Hong Kong goods in export markets. I need hardly point out that the result of this would be unemployment in Hong Kong - exported from the United Kingdom and the remainder of the West.
5.
Hong Kong's livelihood depends almost wholly on exports; and basically we export our labour and our enterprise. Because of our geographical, political and economic situation, our earning power is determined largely by our competitive position in world markets; and we must be flexible enough to react to changes in that position. Anything which increases costs is, therefore, dangerous, particularly if it also reduces the flexibility of the
E.O. Laird, Esq., C.M.G., M.B.E., Hong Kong Department,
Foreign and Commonwealth Office, LONDON, S.W.1.
CONFIDENTIAL
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