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:

62.

FTU unions have apparently not been averse to taking a more active

part if a gain of membership might result from their appearance; but

they have certainly not been anxious to assume a role of militant

leadership in such cases. Both employers and Labour Department officials

who have dealt with FTU union officers speak of them as "reasonable".

And it was remarkable, for instance, that in the 1974 recession (when in

view of the obvious concern of Hong Kong workers with security, and

their evident willingness to take spontaneous action in cases of

dismissal or redundancy, an active union campaign might have produced

a considerable gain in membership and influence) the FTU undertook no

such initiative. On the contrary, FTU unions are reported to have

organised "consolation meetings" for workers dismissed, and to have

themselves made compensation payments although unemployment benefits

are not generally provided in their rules.

63.

Nor has the FTU been at all militant on the wider field of

legislative and social provision; I gather, for instance that, although

the FTU refuses to entertain any official relations with the Government,

the Left press has not been critical, in the recent public controversy

over legislation to introduce paid annual holidays and reduce juvenile

overtime, of the new provisions as inadequate: but has published letters

defending them. It is especially remarkable that although the major

leaders of the Left and Right union groups maintain public attitudes of

mutual hostility, and their philosophies and associations are clearly

such that no arrangement between them is feasible, there is no evidence

of significant competition - for instance, in wage or other demands - at

the industry and enterprise level. Indeed, there is clearly a good deal

of mutual tolerance at the workplace (the extent of dual membership has

already been noted); and even in cases where a Left union has a greater

membership than a Right union, but -- as is likely to be normal in such

situations the latter is "recognised" to the extent that managements

deal with unions at all, it seems unusual for the Left to challenge the

position.

64. There are several possible explanations of the industrial

quiescence of the FTU group; of which, the most likely is that China

earns a very large proportion (there are varying estimates) of foreign

currency which is vital for the acquisition of equipment and materials

through Hong Kong, and does not encourage its subordinate union group to

action which may disturb that flow. Equally, membership of an FTU union

/is

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