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Sir T. Lloyd
I agree that with one exception we can accept the Governor's proposals, but I am afraid that we shall have to refer back to Sir Mark Young, before going to the Treasury, for his views as to the salaries to be attached to the posts. We are not in the position to suggest salaries to the Treasury without prior reference to the Governor.
The exception I have in mind is the proposal to defer for the time being the appointment of a Trade Union Adviser. Unfortunately, the file containing the correspondence referred to in the Governor's remarks on this point, paragraph 2(v) of No.3, is not available, but it is clear from what Sir Mark Young says that he feels that the question of fostering the growth of Trade Unions along the right lines is not an immediate problem. With all respect, I should have thought it was a pressing need in Hong Kong. Apart from the obvious advantages of ensuring that the Trade Unions which are now being established start on the right lines and the importance to the Colony of maintaining good and harmonious relations between the employers and employees, there is always the danger of these Trade Unions being utilised by the Chinese political parties for their own purposes. The presence of a Trade Union Adviser, who could, among other things, stress the legitimate objects of the Trade Unions and help to induce the Unions to concentrate on those objects, would, I feel, minimise this danger.
I suggest, therefore, that we should ask by cable for the Governor's views on the salaries to be attached to the posts recommended, including a Trade Union Adviser, and, at the same time, ask the Governor whether he would not agree that there would be some advantage in appointing a Trade Union Adviser now, if we can get one.
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