CO129-623-1 Rubber Industry- report and correspondence on the labour situation 1-4-1950 - 31-1-1951 — Page 50

t

Code

INWARD TELEGRAM

TO THE SECRETARY OF STATE FOR THE COLONIES

COPY FOR REGISTRATION

FROM HONG KONG (Sir A. Grantham)

D. 20th November, 1950. R. 20th

18

08.55 hrs.

49 6

IMMEDIATE

No. 1272.

5

Confidential.

Your confidential telegram No. 1693.

Parliamentary Question: Fung Keong Rubber Factory.

This factory employing 1,200 workers closed on

8th August 1950. Reasons for closure were:-

(a) High cost of rubber.

(b) Underselling by U.K. competitors resulting in

loss of U.K. market which had taken 90% of the output.

2. This is one of the latest symptoms of a general shrinkage in the Hong Kong rubber industry. Number employed in this industry fell from 5,900 in the first quarter to 3,200 in the third quarter.

3. Ever since the factory closed down discussions have been held with the management and the workers' two unions regarding possibility of resuming operation but, until raw material again becomes available at an economic price, there is little prospect of this. Some of the workers have obtained other employment.

4. You will appreciate that there is a gross surplus of unskilled and semi-skilled labour at present, due to influx of immigrants and that some of the Fung Keong workers are recent arrivals.

Page 50Page 51