RESTRICTED

Mrs. Gingell, CRE 40

Department of Trade,

1 Victoria Street.

CON/EPH

31 August, 1978.

LABOUR CONDITIONS IN HONG KONG.

You will no doubt recall our telephone conversation of 10 August in which I asked for guidance on Mr. Bob Cryer's reported statement during a debate in the House of Commons on July 24 that "people in such countries as Korea and Hong Kong are grossly exploited".

2.

The Hong Kong Government have kindly kept me informed of the exchange of telegrams which they have had with the FCO ending with their telno 996 of 16 August following the tabling of questions in the Legislative Council. But I think that CRE4 should be aware that the dissatisfaction lingers on and that even though the Hong Kong Government may not be receiving formal protests, I and my staff, as visible representatives of the Departments of Tradd and Industry are constantly being asked to explain the remarks and the reason why no apology has issued.

3. As examples of the rumblings I enclose copies of an article and editorial in recent editions of the South China Morning Post. Several senior Chinese have asked whether it is possible that a Minister of the Department of Industry, which is trying to sell Hong Kong a power station and a transmission link, could have spoken in such a manner.

c.o.

Encs.

C.B.Benjamin, Esq., Under Secretary, D.O.I.

D. M. March

RESTRICTED

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