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I discussed with the local Military and Naval Authorities

the desirability of constituting in Hong Kong a Labour

Advisory Board upon which would be representatives of the

Colonial Government, the Army, the Navy and the mercantile

community (both British and Chinese), in order that we

might have ready to hand in time of trouble an organization

which can mediate between employer and employed and that there may be, as far as possible, unanimity of policy among the largest local employes of labour in their treatment

of workmen. Such a Board was established a few years ago

at Colombo and proved of value to the Ceylon Government. It

would, I think, be equally valuable here. i will inform

you in due course of the arrangements which are made and

which at the outset, in order to avoid misunderstanding, i propose to treat as confidential. But, in the meanwhile, it is important that the War Office and the Admiralty should

realize how delicate, and even hazardous, is the labour

situation in this Colony, and how undesirable it would be for questions of pay and conditions of chinese labourers in the employ of the local Military and Naval Authorities to be settled except in close consultation with the colonial

Government.

4.

i have furnished a copy of this despatch to Major-General C.C. Luard and to Commodore J.L. Pearson.

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etc.)

have, the honour to be,

Sir,

Your most obedient humble servant,

'C. CLEMENTI, Cans

Governor

mor, &c. le cai

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