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Fide &

HRK

CODE 18-77

CONFIDENTIAL

Reference...........

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Fir Foggon, OLA

Fogdon,

TRADE UNIONS IN HONG KONG

1. You will wish to see the letter at folio 1 below from Hong Kong about developments in the trade union movement since David Lai wrote 16 months' ago.

2. Fr Sweetman reports that there has been little change in trade union recruiting trends since David Lai wrote and that, not surprisingly in the present economic circumstances, there has been a decline in strikes and industrial action. Although Mr Sweetman makes no mention of it, the low profile taken by the FTU is no doubt attributable to instructions from Feking not to stir things up and to avoid major confrontations with the Government.

3. I shall be drafting a reply from Mr O'Keeffe to Mr Sweetman thanking him for this report and would welcome any comments you may have.

0 4kk stib HKK

1973 (36)

Amkon

A L Wotton

Hong Kong & Indian Ocean Dept.

14 April 1975

Encl

Mr Wotton

TRADE UNIONS IN HONG KONG

1. Mr Sweetman has gone to considerable trouble in presenting this latest picture of the local labour scene, which is on the whole reassuring. The marked decrease in strikes and man-days lost says a great deal for the common-

I recall sense and discipline of the Hong Kong workers. that when I put the question to Mr Tim Fook Tsui about how labour would react in Hong Kong to a continuing fall in real wages, he expressed the firm view that labour would understand the problems of employers and would act with patience (Para.9 of my February 1974 report).

2.

It is clear also that the severance pay legislation was introduced just in time.

CONFIDENTIAL

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