TNAG-0003-FCO40-39-Commission-of-Enquiry-into-the-Kowloon-disturbances-addition-1968 — Page 155

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PART VI CONCLUSIONS

135

are available, we are satisfied that unemployment was not at the time a serious problem for younger people in Hong Kong. This conclusion is also supported by the figures of vacancies notified, which stood at 5,653 at the end of March, 1966.

496. Although one witness spoke of fear of unemployment being a significant cause of unrest amongst unskilled workers, we feel that this is probably only a part of the general sense of insecurity springing from the uncertain future.

Wages and Conditions of Work

497. In inquiring into the social background of individual participants and into the widespread comment on economic conditions we also turned our attention to industrial wages. The main source of information in this respect is the Labour Department's wage change index, which is based on a survey of wage rates in selected industries and is qualified by a number of admitted limitations, fully set out in the published documents. In spite of its limited coverage and the qualifica- tions regarding its compilation and use, it is a useful indicator of trends and discloses the following pattern from the base year 1958:

March

1958

August March

59

60

61

62

63

64

65

65

66

100

103

125

129

137

143

163

173

182

188

498. These statistics, taken in conjunction with the figures of employment just mentioned and with the rise in the cost of living for the average household of 14% between 1958-65 (see paragraph 484) indicate that Hong Kong has provided an enviable level of employment in the main industries and that this has been accompanied by real wage increase in the sphere of the economy affecting the majority of workers.

Economic factors

Summary:

499. We believe that economic problems occupy a predominant position in the minds of the majority of the population and that any threat to their aspirations of a better economic situation will be viewed with great concern.

500. We agree with the economist's view that there was nothing in the economic situation in April 1966 which would have led one to expect a riot; but we think that worries about the general economic situation and uncertainty as to the future together with psychological fears of inflation arising from a number of reported cost increases in the public sector were a source of public concern and created an atmosphere in which demonstrations could find support. Whilst the economic situation did not cause the riots it contained factors which contributed to an ill-defined and vague sense of uneasiness.