CONFIDENTIAL
so far heard it was important that there should be movement over both. Mr Cortazzi referred to the more general requirement that the basis of representation in the Executive and Legislative Councils in Hong Kong should be seen to be broadening.
Sir M Maclehose explained how complex it was to make progress on the trades union side because of the structure of Hong Kong trades unionism. On a minor proportion of the labour force was unionized; of that the bulk were divided between 2 unions, one Communist dominated and one dominated by Kuo Min Tang (Taiwan) interests. Independent trades unionism was an insignificant element.
It was politically impossible to contemplate giving the Communists participation in the Hong Kong Government; and it would provoke very serious reactions from Feking if a KMT representative were to be appointed. So far as the residual independent trades union element was concerned the only possible candidate for appointment was not very credible on personal grounds. However, if in the UK Government's view, it was essential, for optical reasons, that such a move should be made he would do his best, although it would be at some cost to his personal position. In response to a question about the chances of developing the independent sector of the trades union movement he expressed considerable doubts. A number of attempts had been made and yet another expert, Professor Turner, would be visiting Hong Kong later in the year to survey the scene and prepare a report. But he was not sanguine. It would also be helpful for him to know what the order of priorities in the social field seemed to be, to the TUC and other pressure groups in the UK, so that he could decide in what order it would be advisable to try to take things forward. Mr Crosland said he would have a word with the TUC, either at one of his regular meetings with the International Committee or in contact with Mr Len Murray, before Sir M Maclehose's next visit to the UK.
3. Mr Crosland said that so far as import controls on Hong Kong products, in particular textiles, were concerned it looked as though HMG were just about able to hold the situation but that domestic pressures for such action were still strong. Mr Cortazzi commented that HMG's ability to do so depended on the general trading relationship between Britain and Hong Kong. Sir M Maclehose explained to Mr Crosland that he fully understood what was meant; it was the ability of British contractors to bid successfully for business arising from the development of the Hong Kong Mass Transit System. He did not want any requests sent to him in writing since he had fully taken on board how desirable it was that as much business as possible should go to the UK and it would have very adverse consequences on his position if it were to come out that he personally was involved. But he assured Mr Crosland that he was doing what he could to help, especially in discreet direct contact with the British industrialists concerned such as Lord Nelson of Stafford, and by speaking privately to the Mass Transit Authority.
4 May 1976
HKIOD
CC: D to enter
FS
PS/Lord Goronwy-Roberts
Mr Cortazzi
dir Male
verseas Labour Adviser, TRED,FED.