CHINA
28.9.50
LABOUR SITUATION IN HK REPORTED HEALTHY
The labour situation in Hong Kong remains healthy and nothing is likely to arise in the near future to provoke dissension, a survey of the industrial scene yesterday revealed. Despite the recent closure of an old-established rubber factory and the resultant dismissal of over 1,000 workers, unemployment figures show no indication of soaring beyond the nor- mal ratio for this season. The survey disclosed that this rubber factory's closure was an exception rather than the rule, and was not indica- tive of a general business de- pression. No other factory of importance has followed its example, and the local rubber industry as a whole is bear- ing well in the face of a world- wide increase in the price of natural rubber.
A portion of the dismissed workers of the factory concern- ed has already found new ent- ployment. Personal hardships are being encountered by the re- mainder, but their union is understood to be making efforts to rehabilitate them as soon as possible:
survey showed. Amusement parks are operating at great loss,
often do and night-clubs
not make enough to cover musicians cater to the huge crowds they dir salaries. Restaurants no longer a year ago, and the hotel business
after an era of lucrative intake |—has returned to normal opera-
tions.
This is ali attributed by the world conditions, to the return people concerned to current
(er bankruptcy) of refugees from North China, and to the abandon- ment of the reckless spending spree which featured life in the Colony immediately after libera- tion.
Because the entertainment busi- ness thrived under abnormal con- ditions and catered to a clientele made up largely of aliens, the The conciliatory attitude of the survey showed that its decline management in this case helped does not imply a recession of to reduce industrial tension when keal industry as a whole. The the closure was announced, and mainstay of Hong Kong's com- no dispute of importance arose as hercial health remains unimpair- a result. Negotiations are stilled, but a lot of the superficial proceeding for the full resump- glitter once identified with it is tion of this factory.
rapidly going overboard.
Of labour unrest there is no sign. Government action in de porting troublesome union heads? has borne fruit, and agitation is virtually non-existent.
According to information from several sources, unemployment is ceasing to exert a profound in- fluence on, the labour situation
because many worker-refugees from Communist China are re- turning to their native places.
Thousands of them came here last year when the civil war en- gulfed South China. Many of them found employment locally, but the larger percentage had nothing to do. When it became evident that Hong Kong's absorp- tion had reached saturation point, they started to return. This movement reached momentum recently when Communist money appreciated in terms of foreign currencies and the jen min piao! was stabilised.
Cotton mills
Price stability
The stability of prices and the obvious advantage of living and working in Hong Kong rather than 'in China have both con- tributed to a more enlightened appraisal of realities by the Co- lony's working classes. Where once they clamoured because Communism seen from a distance/ seemed a good thing now they |t| are silent bocause the results of Communism across the border arð only too apparent.
The overall picture, according to the survey, boils down to this: 1.) Trade continues, despite the closure of China.
2.) Mills and factories are not expanding, but at the same time they are not closing down.
3. Trade unionists no longer
politics to agitate.
Hong Kong cotton mills are continuing to produce shirts and singlets and are seeking new markets in the South Seas and the Commonwealth. The es- find encouragement in Chinese tablishment of Bu Indonesian Consulate here has accelerated 4. Labour is experiencing no the flow of local goods to Java unrest. and a large measure of and Sumatra, and this market is tranquillity prevails in industrial being explored as an alternative to China, where restrictions are hampering trade.
Mill circles are discussing the decision reported to have been reached by the owners of the Hong Kong Cotton Mills, Limited, to transfer the entire works and staff to the Philippines in view of the uncertainty of Hong Kong's future.
The Hong Kong Cotton Mills Limited was established three years ago at a site on Castle Peak Road by a Shanghai mill-owning family. Mily hands were brought to the Colony from the North, and the factory itself was run along modern lines. It is air- conditioned throughout.
The survey disclosed that nego- tiations have been going on for some time to transfer the entire factory to Manila, but difficuMies at have arisen over the question of Filipino visas for the 1,000-odd mill hands now employed.
DT
In the aluminium flask indus- try business is progressing satis- ersfactorily, and one such factory is as reported to be making a substan- tial turnover in selling such flasks tal in England At the recent British Industries Fair orders were con- Of wracted for a large supply of these ng Hong Kong flasks.
DO.
British buyers found them on a par with the English variety, al- though the cost of the local brand
as was reduced by half. In this con-
renection, factory owners explained
fr
that the quality of their product! could hardly be any different
en from English flasks.
becaus:
hs identical materials and machinery
heare used here.
nd
us
at
rs
he
11-
en
Much optimism
The survey showed that in
has any
no line of industry expansion taken place recently, but conversaty, cases of con- traction have been rare. The tendency of Hong Kong indus- try as a whole is to pursue a policy of containment - which means that unless a world arisis develops the present status quo will be indefinitely maintained. In management circles a large measure of optimism continues to prevail, bu business beeds in- variably agree that boom-condi- tions have gely vanished and will not return for some time. The capitalists are sitting on, their assets, and investment on a large scale will not ensue while the Chinese political situation re- mains fluid.
Certain businesses are begin- ing to suffer, but these as a rule have nothing to do with industry as such.
In the real estate trade. tcr instance, a definite recession has set in. Large blocks of flats along King's Road remain vacant be- cause at last supply exceeds de- maid in the matter of housing. Key money as a flourishing racket Lis largely a thing of the past; high rentals are also toppling, und circles in the know are free- Jy predicting that before long rentals in all areas will return to pre-war levels plus the inflation- ary percentage now regarded as normal.
In the entertainment world business is definitely bad, the
circles.
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