CONFIDENTIAL

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5.

A copy of Professor Turner's report has been sent to the Governor of Hong Kong for his comments. He has, however, told me that he will not be in a position to comment until he has discussed the report with Professor Turner, who returned to Hong Kong on 16 February before going on to Australia to complete a sabbatical at Sydney University. I would have preferred to have the Hong Kong Government's comments on Professor Turner's report before deciding what action needs to be taken but there is a certain urgency involved.. I, therefore, think that we must manage without their comments at this stage.

Further Action

6. Mr Callaghan, when Secretary of State, told members of the International Committee of the TUC of the proposal to appoint an academic authority to carry out a "low-profile and independent"] study of labour relations in Hong Kong. The General Secretary of the TUC then asked that the academic chosen to carry out the task should be accompanied by persons with practical experience of trade union and managerial problems. Mr Callaghan did not accept this suggestion because it might prejudice the co-operation required from both sides of industry in Hong Kong if a successful study was to be carried out. Instead, Mr Callaghan said that "there was a clear case for a researcher ... to undertake the main outlines of the study and then ... to look at what part the TUC and the CBI might be able to play". The question of the TUC's being associated in some way with the study was again raised at the meeting of the Overseas Labour Consultative Committee on 30 January 1976 and by Mr Len Murray in a letter to the Secretary of State on 7 May. In his reply, Mr Crosland explained that arrangements were well advanced for Professor Turner to go to Hong Kong, that the aim was for him to produce a report by the end of 1976 and that copies of it would certainly be sent to the TUC (and the CBI "so that we can jointly consider what next should be done".

7.

The Governor of Hong Kong has told me that he would prefer that the present report should not be given to the TUC (and the CBI). The conclusions in it are still very tentative and might be modified

3 CONFIDENTI AL

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