RESTRICTED
#
{
arguments against a public probe. There is the danger of a possibly critical reaction from China, which seems to be keeping a strong grip on the Communist trade unions in view of its interest in a stable internal situation in Hong Kong. We must reluctantly accept, moreover, that criticism in Hong Kong of the current industrial relations scene in the United Kingdom would cause official and business circles in Hong Kong to be deeply suspicious of a UK-based commission and reluctant to finance or support its activities. Without local support, it is unlikely that anything of practical application would result from a public formal enquiry. If a useful and dispassionate assessment of the state of labour relations in Hong Kong is to be made, the arrangements should be as informal and unpublicised as possible.
Recommendation
5.
It is recommended, therefore, that a survey be carried out with the minimum of publicity by an industrial relations specialist of proved reputation. For our purposes, an academic of the standing and reputation of Dr W R MacCarthy, at present Chairman of the Railway Arbitration Tribunal, would carry the right amount of weight. lle undertook a major part of the research initiated by the United Kingdom Donovan Royal Commission and could be relied upon to approach the Hong Kong situation in an objective and practical way. In view of the present delicate situation, the modalities would have to be worked out carefully, the first step being to approach the Governor of Hong Kong.
Overseas Labour Adviser &
Hong Kong & Indian Ocean Department
17 July 1975