SECRET

reception both from management and labour, despite the unanimous suppat the Bill received from the Labour Advisory Board on which employers and workers are equally represented. The Bill is being re-examined. All this suggests that both the Governor (who was privately doubtful about one of the Bill's main provisions) and the Department could profit from some independent assessment of the state of industrial relations. It may be that the Governor will react adversely to the proposal for even a low-profile academic examination but from the Departmental point of view there is much to recommend it.

In my view we must convince the Governor of the rightness of what is proposed before any further discussion of the subject with the NEC or TUC.

Trade Union Ordinance

I see no political objection to the proposal that a dialogue should be agreed between the OLA and the Labour Commissioner on ways in which the trade union legislation in Hong Kong could be simplified.

Hong Kong & Indian Ocean Department

17 July 1975

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