TNAG-0010-FCO40-46-Kowloon-disturbances-1986 — Page 134

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(ii) Labour

Relations between employees and employers in

Hong Kong have not been good and we should do our

best to improve matters. Less than 12% of the total

working force are declared members of trade unions

and there are 100,000 members of the Communist

Unions as opposed to 70,000 others. The Communist

Unions are basically disinterested in genuine

industrial issues. I recommend that we should press

the Governor to go ahead vigorously with improvements

in the labour legislation including early steps to

shorten the hours of work of women and young persons.

(iii) Other Matters

(a) Facilities to the U.S.

In the background of our difficulties with

the C.P.G. lies their irritation at the

facilities which the U.S. forces in Vietnam

enjoy in Hong Kong. We have latterly restricted

number

visits of warships to the same as last year and

elas

more recently have suggested that larger ships

should not come. I do not recommend any further

immediate action since any significant

diminution would be claimed by the Chinese as

a propaganda victory. But I am sure that this

is something that we should keep under review

in the longer term.

(b) Military Planning

I suggest that contingency planning should

be set in hand with regard to the implications

of:-

(i) a prolonged confrontation with Communist

China;

ii) withdrawal7.

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