TNAG-0032-FCO40-68-Relations-with-China-1968 — Page 134

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CONFIDENTIAL

to abdicate its authorities and responsibilities in favour of the minority and at the expense of the overwhelming majority, apart from the fact that the wish of the minority may not be genuine; furthermore, there was the question of confidence in respect of both local and foreign investments here. Mr. Ho acknowledged the differences but suggested that the solution was not impossible.

6.

Mr. Tsui then asked what solutions he had in mind and Mr. Ho suggested that consideration should be given to meeting the four demands:-

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(a) Re-employment Mr. Ho believed that the unions would probably

be quite satisfied if the utility companies as well as the "Govern- ment were to re-employ some dismissed workers and told the others that their old jobs had been filled by new recruits. way, the communist newspapers would report that all dismissed workers had been re-employed and that the leaders could report back to Peking that they had been triumphant. He suggested that, in the case of Government, dismissed workers from one depart-

I said that ment could be re-employed in other departments, Government would be prepared to consider them as new recruits to vacancies if the job-seekers were willing to complete an application form or to register with the Labour Department. Mr. Ho said that he had received information (he emphasised that this was hearsay) that Mr. Louie of K. M. B. was prepared to re- employ the dismissed workers but had been advised by Government not to do so. Mr. Tsui and I said that it was not the policy of Government to influence the employment policy of any private enterprise and Mr. Q. W. Lee added that many private concerns would be reluctant to employ these workers for fear of further trouble and possible adverse influence on workers who had remained loyal last year throughout the disturbances.

(b)

(c)

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Rice Mr. Ho thought that the union members found it difficult to understand why this could not be agreed. We said that the problem here was that the alleged importers did not wish to

I asked whether or not there comply with the normal rules. were in fact an additional 5,000 tons available immediately for import, having regard to the current situation in Kwangtung, to which Mr. Ho replied that a country as resourceful as China could certainly spare the additional quantity.

Detentions

Mr. Ho advocated the release of the detainees, in several phases, if necessary. We pointed out that they were detained in accordance with the laws but Mr. Ho said that the communists did not recognize these laws, We emphasised that the fundamental difference was that an overwhelming majority of our population believed in Government by law.

(d) Mr. Ho referred to four points but never elaborated on the

fourth one. I subsequently learned from Paul Tsui that the fourth point was the grouping of last year's four demands into

one.

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/contd.