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Working conditions in factories improved generally and more factory-type buildings were erected. More industrial undertakings opened in the New Territories and there were several applications to erect factories, including an application for another match factory on one of the islands of the New Territories.

Industries. Male. Female. Total. Shipyards 10,553 14 10,567 Sugar Refineries 770 81 851 Oil Refineries 449 12 461 Breweries 40 10 50 Metal Wares 1,794 3,013 4,807 Knitting Factories 2,114 6,233 8,347 Spinning and Weaving Factories 1,378 4,489 5,867 Engineering 951 29 980 Rubber Factories 1,384 3,250 4,634 Newspaper Factories 731 2 733 Printing Factories 2,516 563 3,079 Tobacco Factories 385 1,618 2,003 23,065 19,314 42,379

There were two disputes of more than minor importance during the year, in both of which Shanghai Chinese were involved. The employment of Shanghai workmen in Hong Kong presents certain problems which are absent from the employment of local labour and there is reason to believe that much of the unrest has its roots in the natural discontent of men who are separated from their families and who feel themselves to be strangers in a strange land. In both cases an amicable settlement was finally reached and the Shanghai workmen were repatriated to their homes.

Mr. H. R. Butters, who was appointed Labour Officer at the end of 1938, completed his survey of labour and labour conditions in Hong Kong and submitted a report which was published as Sessional Paper No. 3 of 1939. Among other recommendations the report advocates the enactment of legislation to provide for (a) the voluntary registration of Trade Unions, (b) the creation of Trade Boards to deal with questions of wages and hours of work in particular trades, (c) a system of Workmen's Compensation and (d) an extensive labour law, in place of the present Factories and Workshops Ordinance, dealing with labour conditions generally and providing for a labour inspectorate of European, Chinese and women inspectors under the direction of the Labour Officer. These recommendations are under consideration.

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