CO537-2188 — Page 64

89. To Hong Kong - Tel 1057

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90. Note on Representations by H.K. General Chamber of formerce

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Mr. Mitchell, of the China Association, spent over two hours with Mr. Mayle and myself this morning, discussing details of the proposed Constitution changes in Hong Kong with particular reference to the China Association's representations. at No. 33, as summarised in No.35. We used the note at No.35 as a brief for our discussion with Mr. Mitchell. Having heard the details of the Municipal Council, which were given to him on the strict understanding that he would regard thes information as confidential until such time as the two despatches are published, Mr. Mitchell said that the only criticisms of any importance which he had to make were the following:-

(1)7provision (see paragraph 29 of Sir M. Young's despatch) that the recognised trade unions should have the right of nominating two Chinese Councillors is, in his view, unwise, as he does not consider the trade unions in Hong Kong will for some long time be in a position to nominate Councillors truly representa- tive of the working classes.

(2) The membership of the Council (30) is too large.

(3) The effect of Sir M. Young's proposals that the Council should consist of 15 Chinese and 15 non-Chinese members, but that the latter should include at

least 1 Indian (see paragraph 27(a)

of Sir M. Young's despatch) will be to ensure that there is always an Asiatic majority.

Mr. Mitchell realised that there was nothing to be done at this stage about (2) and (3) above, but in regard to (1) he urged very strongly that the Secretary of State's despatch in reply should make it clear that, if the recognised trade unions are not able to provide two representative Councillors, other arrangements may be made for two representatives of organised labour in the Colony to be nominated.

2.

Mr. Mitchell did not know, and we could not tell him, that we have received from Hong Kong draft trade union legislation which, when enacted, will provide for the compulsory registration of all trade unions within three months of the enactment of the Ordinance, failing which they will become | illegal. The requirements of this legislation

will ensure that a union which is in effect nothing more than a political racket will not secure registration. It will not, of course, overcome the difficulty that the unions which will qualify for recognition may not be able to provide two members who will be truly representative of organised labour in the Colony, but it is not easy

to