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8507 D.073939 200M. 11/74 Cr.P.C. Gp.839/3

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labour relations and trade union situation in

Hong Kong from some well-qualified source. There did not, in his view, seem at present to be a body of informed knowledge on this subject in this country and he felt that the advice tendered

to you by the Labour Advisory Board did not, on the evidence, adequately cover the spectrum of employer and employee opinion in the Colony, being particularly impressed by the public reactio to the recent Labour Relations Bill. He recognise that the difficulty of making the Board properly representative, given the total non-cooperation of the communist trade unions, was a factor which militated against any development of an adequate dialogue between government and labour even if it were

Xxxxx relatively non-controversial, or at any rate, non-ideological. He was attracted, therefore to the idea of a low profile, academic study to be undertaken by someone of the calibre of Dr W R McCarthy, at present Chairman of tho Railway Arbitration Tribunal. Dr McCarthy undertook a major part of the search undertaken by the Donovan Commission and is generally thought of here as someone who can be relied upon to approach the Hong Kong situation in an objective an practical way. We pointed out the delicacy of the

situation and the need to work out modalities

with you very carefully. I shall write to you further when this idea has been developed a

little further.

6.

Speaking more generally, Mr Callaghan

wondered whether the Labour Advisory Board could

be developed into a body with wider terms of

reference to give advice on economic and social

matters besides the narrower field of industrial

and labour relations. He speculated on the

organis Divon possibility of a quadripartite, consisting of the Government, the employers and the communist and

non-communist trade unions.

Amin On being-

reminded of the non-cooperation of the communist trade unions, he said that he would like

to give more thought to the possibility of

soining

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