6.
COFIDENTIAL
Mr Nightingale had been impressed by the dynamism of Hong Kong manufacturers. They were keenly aware of the problems of greater competition within the region and the need to change both the quality of products and the source of raw materials. However, he was genuinely disappointed at the calibre of British agents in Hong Kong in comparison with their American and Japanese counterparts. BTC commented that this problem was not confined to the textile trade and DTIC agreed saying that there were two basic problems. Some Hong Kong firms took on too many agencies and could not give them adequate attention; while some UK firms failed to service their local agents sufficiently well. The Governor said that the message was clear. If a British manufacturer found that his share of market was down he should examine the performance of his agent more closely. British manufacturers must provide better support for and closer supervision of their agents in Hong Kong.
1.
Mr Gibson said that on this latest visit to Hong Kong he detected a greater concern on the part of local businessmen for the social consequences of the entreprenurial system. But he also sensed an insecurity on the part of the workforce and a greater awareness that more should be done in the field of labour relations. He hoped that despite the historical problems of unions in Hong Kong, they would be able to move away from political concerns more towards improvement of work conditions. This would produce dividends in terms of efficiency in the long term. Although local manufacturers would not admit this, he had been struck by the inefficiency of many operations and thought that labour productivity was probably only 60% that of UK counterparts.
8.
In this context the Minister thought that an additional benefit of the Mission was that it had displayed the united approach of Government, business and unions in the textile field to Hong Kong manufacturers. It was a clear demonstration of the co-operative spirit in this industry in contrast to the more widely publicised disruptions in other sectors.
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Mr Audsley
CONFIDENTIAL