CO129-626-3 Labour Department- report to Labour Commissioner 1-3-1951 - 30-6-1952 — Page 2

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18.4.51

Mr. Hal1

I have endeavoured to pick out, as briefly as possible, the salient points of Mr. Houghton's extremely interesting and detailed report covering every aspect of labour conditions in Hong Kong.

I have not commented on the appendices at the end of the report:-

1.

Introduction

This deals with the general conditions in Hong Kong today and the dense population resulting in acute housing shortage. Industrial progress since the war and air of prosperity demonstrating the public's confidence in the future of Hong Kong as a British Crown Colony.

The effect of communist occupation of China which stopped the ebb and flow of the unemployed from the Colony, which formerly eased the problems of Government.

Conditions in China and the danger of Communist agitations attempting to exploit any lack of progress in the standard of living and social security in Hong Kong.

2.

General.

Political history of China which influences the Chinese thought and outlook Chinese workers outleek as far as trade unionism is concerned.

Decline of trade unionism after the failure of the general strike in China in 1927, and the spontaneous development in Hong Kong in 40-41 while there were genuine wages grievances, whichceased on the occupation.

Trade union s

should be made to realise that their job is to build up sound, well led organisations to carry out day to day trade union work and to avoid the conflicting maze of Chinese politics. Little progress seems possible until non-political organisations come into being as a result of dissatisfaction of the workers with the existing Federations which are more concerned with foreign political ideology than the welfare of the workers and which are trying to weld all the unions into a general labour union for political reasons.

While the employers in Hong Kong have a good record with regard to their efforts to improve working conditions and the maintenance of wage levels

they are beginning to realise that their old methods of benevolent paternalism does not fit into the pattern of modern democracy.

What should be aimed at, having regard to the present stage of the development of local unions, is some method of liaison between both sides which will enable each to understand what the other is thinking, because joint consultation at local level

/invariably