}

consider the suggestion.

4. Mr Pendry said that there were so many issues which put

Britain in a bad light in Hong Kong. Examples were the

uncertainty over the sterling agreements and the apparent milking

of the Stock Exchange by British institutions. The media had been

Effective action on the Godber case would take the

unhelpful.

sting out of all this.

5. Sir Alec Douglas-Home said that he knew the Governor had been

unhappy about police morale for some time because of the crime wave.

Mr Pendry thought that the anti-crime drive was succeeding. But

some policemen might well resign if Mr Slevin became Commissioner.

He thought the Anti-Corruption Branch should be separate from the

police. When he talked to the Press, he would avoid mentioning tho

possible amendment to the Fugitive Offenders Act because of the

danger of scaring Mr Godber away.

6. Mr Pendry then said that one of his pet subjects was industrial

relations. Some other time he would like to talk about the

application to Hong Kong of various ILO conventions.

He thought

that collective bargaining machinery was poor. Mr Crowson said that

he understood two new pieces of legislation on this subject were

being drafted in Hong Kong. Mr Pendry said he had heard of this

and welcomed it publicly as a first step.

7. Sir Alec Douglas-Home said that he would be having discussions

with Sir Murray MacLehose next week. He agreed that the Godber cano

loomed large, and would certainly be talking about it with the

Governor. Mr Pendry said he thought Hong Kong had made miraculous

achievements. Much credit was due to the Hong Kong Government; it

was help they needed rather than criticism. Even the Communist

Chinese Trade Unionista participated well in the system. He thought

#

3- CONFIDENTIAL

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