CONFIDENTIAL
TO BE INTRODUCED AS MAJOR POLICY BUT INSTEAD WILL SURVEY THE POSITION AS IT EXISTS IN HONG KONG IN SEVERAL SECTORS AND SPELL OUT OBJECTIVES AS SIGNPOSTS FOR THE FUTURE.
4. THE STAR OF 18 JANUARY CARRIED A SECOND LEADER ON MINIMUM WAGE
WHICH CONCLUDED:
''EXPERIENCE IN THE UNITED STATES SEEMS TO SHOW IT CAUSES UNEMPLOYMENT AMONG THE RANKS OF THE UNSKILLED, WHEN EMPLOYERS THINK THEY ARE NOT WORTH THE MINIMUM THAT HAS BEEN FROM TIME TO TIME FIXED TOO HIGH. IT COULD BE A BRAKE ON THE LOWER END OF OUR ECONOMY WHERE ENTERPRISE IS NEEDED TO ABSORB THE COMPLETELY UNSKILLED.
5. THE INITIAL REPORT OF THE INTERIM TURNER STATEMENT HAS BEEN LARGELY IGNORED BY THE CHINESE PRESS. THE ONLY EDITORIAL COMMENT HAS BEEN IN THIS MORNING'S SING TAO JIH PAO (SAME GROUPS AS THE STANDARD) THAT THE TWO ITEMS BROUGHT OUT BY THE REPORT ON THE TURNER STUDY INDICATE AN IGNORANCE OF THE HONG KONG SITUATION.
6. IN RESPONSE TO PRESS QUERIES WE HAVE SAID THAT PROF. TURNER
IS CARRYING OUT AN ACADEMIC STUDY OF LABOUR RELATIONS IN HONG KONG,
THAT WE HAVE RECEIVED A COPY OF HIS INTERIM REVIEW WHICH DOES NOT
ARRIVE AT ANY FIRM CONCLUSIONS AND THAT WE THOUGHT IT WOULD BE
SEVERAL MONTHS BEFORE THE FINAL VERSION WOULD BE READY. REQUESTS
FOR COPIES OR A SIGHT OF THE INTERIM STATEMENT HAVE BEEN REFUSED.
7. THE ADVERSE COMMENTS FROM BOTH SIDES OF INDUSTRY ON THE
APPLICATION OF A MINIMUM WAGE CONCEPT TO HONG KONG DOES NOT COME
AS A SURPRISE TO US. FORTUNATELY, THERE IS NOT MUCH HEAT IN THESE COMMENTS AT THE PRESENT TIME, POSSIBLY DUE TO THE PROVISIONAL AND INTERIM NATURE OF THE SUGGESTION.
8. AS REGARDS THE P.Q, THERE IS NO ''TURNER COMMITTEE ON TRADE
UNIONS IN HONG KONG'' AND I WOULD MUCH APPRECIATE IT IF THIS
IMPRESSION WAS CORRECTED IN YOUR REPLY, OTHERWISE THE MOST SINISTER IMPLICATIONS WOULD BE DRAWN HERE. ACCORDINGLY,
SUGGEST THAT THE ACADEMIC NATURE OF PROFESSOR TURNER'S STUDY
SHOULD BE EMPHASISED.
MACLEHOSE
FILES
HKJGD
OLA
MR MURRAY
COPIES
Το
HONG KONG GOVERNMENT OFFICE
2 CONFIDENTIAL