HK/9

Reference......

Bony-taken unto

account in Nested drott

Mr Milton, Hong Kong Department (K247)

Rubuiffen

HONG KONG: PROFESSOR TURNER'S STUDY OF LABOUR RELATIONS

1.

2.

Please refer to your minüte of 30 March.

I think we need to be a little cautious re the second stage of the enquiry. The Governor's advice to Professor Turner to concentrate on labour relations is subject, I would say, to whatever may come out of the OLCC meeting and an the "final" terms of reference as decided by the FCO in consultation with the Governor. My minute of 30 March recording my conversation with the TUC's Mr Hargreaves is a warning about being too definite at this stage.

3. In the middle of paragraph 2 of your submission after the sentence which ends "progress on the social front", I advise that a sentence be inserted on the following lines:

"The TUC which is now considering the report may wish to offer guidance on the direction Professor Turner's enquiries should now take and this advice will be carefully assessed when we are defining any new terms of reference which may be needed."

The following sentence might then be amended to read:

K

"The Governor's advice to Professor Turner to concentrate on labour relations during the second stage of the study, is an indication of the point which the Governor will stress when we discuss with him the final terms of reference: but, in addition to whatever the TUC (and CBI) might advise we shall be careful to see that Professor Turner's preliminary conclusions with regard to serial matters are not overlooked (paragraphs 77(a) (b) and paragraph 80(1) in particular in Professor Turner's report) As regards paragraph 4 of your draft submission, I expect that the British TUC will be seeking a role for the Hong Kong trade unions to play. If for the reasons given in the interim study, it is not practicable to expect the unions to play a part in "industrial relations in the narrow sense" (para 4 of HK Tel No 328), the British TUC may come down in favour of their being given the opportunity to play, and to be seen to be playing, a broader social role. This point could well be drawn to the Governor's attention unless you feel it will strengthen our hands to wait for the OLCC's advice.

4.

JR.3. Aurt

HR G Hurst

Overseas Labour Adviser

CODE 18 - 77

31 March 1977

CONFIDENTIAL

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