1

CONFIDENTIAL

Labour Adviser and the Economists Dept, has recently been looking closely at the Labour Survey upon which these figures are based and we believe it is possible that, if anything, they may understate the true situation as they give no account of the scale of under-

employment. Whatever conclusions one may draw from these figures it is not hard to see why the Hong Kong Government, in the absence of any provision of unemployment benefit, were drawing up contingency plans for the mass distribution of free meals in case distress got out of hand (paragraph 16). This has lessons for the future.

5.

I have thanked the Governor for his Despatch and recommend that this Despatch be printed for FCO/Whitehall distribution.

16 February 1976

cc

Mr Cortazzi

Metallh

PL O'Keeffe

Hong Kong & Indian Ocean Dept.

Premal

177

CONFIDENTIAL

Sir Murray

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