TNAG-0231-FCO40-267-Conditions-of-employment-of-labour-force-in-Hong-Kong-1970 — Page 101

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M'haird

Jonson

Sir Leslie Monson

CONFIDENTIAL

(Mimbo of 2573 model selfors).

Copy to Mr. Laird (HKD)

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The concluding sentence of the Special Branch Report at 4/E reads as follows:- "The most formidable opposition to the spread of communist influence in labour, as the communists themselves are well aware, remains full employment, the establishment of strong and effective neutral unions, improved working conditions and imaginative management/staff relations".

2.

In my minute of 23 March I enquired whether this assessment has the support of the Hong Kong Government, particularly since the policy of the Labour Department has been one of neutrality between the right-wing and left-wing trade union groups. After the confrontation of 1967 it was expected that the right-wing unions would become more active but in spite of some international aid, the poor quality of the right-wing trade union leadership seems to be one of the principal causes for the failure of that group to command more popular support. To be fair, the right- wing trade union group is also hampered by its comparative moderation and lack of militancy.

3.

Since one of the causes of the 1967 troubles appeared to be attributable to lack of communication between workers and employers, and since it seemed unlikely from past experience that more than a minority of the Hong Kong workers could be covered by effective trade union organisation, an Adviser on Joint Consulation was appointed to the Department of Labour in an effort to improve worker/employer relations. He is an experienced and energetic officer (Mr. G.A. Wilkinson) but there is little evidence that the gospel he preaches has fallen on receptive ears. I also doubt whether he has received the whole-hearted support of the Government or the Commissioner of Labour although that is a personal view.

4.

The trade union legislation of Hong Kong is excessively restrictive but it has to be recognised that any relaxation - particularly in relation to full-time trade union officials - would be likely on present form to be of more help to the communist unions than to the right-wing unions. What is wanted is a more energetic policy on the part of the right-wing leadership, and this can best be stimulated at the present time by external help on the lines of that already being given by the International Textile Workers; but from sources which are not quite so tainted in Hong Kog eyes with the suspicion that the purpose of the help is to diminish Hong Kong's competitive position.

5. We shall no doubt be passing on to the Governor some of the comments made by the recent trade union delegation who came to see Lord Shepherd. We could perhaps link up those comments with an enquiry based on the quotation from the Special Branch Report which begins this minute, making perhaps the following points:-

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CONFIDENTIAL