CONFIDENTIAL
3. International events may of course have had repercussions in Hong Kong; for instance the admission of China to the UN and the expulsion of Taiwan. Also Hong Kong has obviously not been immune from worldwide increases in the cost of living and we imagine this may be further exacerbated by the revaluation of China's currency against the Hong Kong dollar.
4. However, these in themselves do not explain the poor performance of the Hong Kong TUC affiliated unions. Perhaps the various restrictions of the Trade Union Ordinance (eg on employment of paid officials) is operating in favour of the Communist-led unions where there is no shortage of money?
5. We would be interested to know whether this increase in support for the FTU affiliated unions has continued during the first half of 1973 and if you could let us have your views on the implications of this trend.
CONFIDENTIAL
}
Yours
Andrew
A C Stuart
Hong Kong & Indian Ocean Department