IN CONFIDENCE TO MEMBERS
OLC (1974)3
FOREIGN AND COMMONWEALTH OFFICE
OVERSEAS LABOUR CONSULTATIVE COMMITTEE
NINTH MEETING
A NOTE ON LABOUR MATTERS
ITEM 3 HONG KONG :
I.
Introduction
Status of Hong Kong
1. In terms of economic activity and population, Hong Kong is by far the largest and most important of our remaining dependent territories. There can however be no constitutional progress towards self-government for the Colony because the Government of the Chinese People's Republic regard Hong Kong as an integral part of China temporarily controlled by Britain and expect the constitutional status quo in Hong Kong to be maintained pending a final settlement.
Economic Factors
2. At the end of 1972 the population of Hong Kong was estimated to be just over 4,103,000 living in an area of 400 square miles. Of an industrial working population of somewhat more than 600,000, about 260,000 are employed in weaving, spinning, knitting and the manufacture of garments and made up textile goods. The plastics industry remains the second largest employer. Since the end of the Korean war, the pace of economic growth in Hong Kong has been remarkable, industrial production growing at such a rate that the Cólony is perhaps the biggest exporter of manu- factured goods of any developing country. In this period of 20 years or so, unemployment has sunk to insignificant proportions in spite of a doubling of the population; wages, in real terms, increased threefold. But over the last twelve months, Hong Kong's economic prospects have become less promising (though recent indications show some improvement). Economic progress has slowed down because of higher import prices (particularly of oil and food) and because of the recession in world trade.
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