CONFIDENTIAL
Resistance to Exports
Employment and Wage Rates
Trade Unions
24. The success of Hong Kong exports has led to counter
pressure from industries in importing countries for import
restrictions on Hong Kong goods. This pressure first
developed in the field of cotton textiles and exports of
such products to a number of countries are now restricted
by agreements negotiated under the provisions of the GATT
long term cotton textiles arrangements. There are also
quota restrictions on exports of cotton textiles to Britain.
Resistance to Hong Kong's developing exports of other
products is also growing. However wages have risen rapidly
in recent years and Hong Kong textile exporters are now
meeting stiff competition from countries such as Korea
and Taiwan where wages are considerably lower.
LABOUR CONDITIONS AND RELATIONS
25. Of rather more than 1 million people at work in
Hong Kong, 500,000 are in the manufacturing industries.
Unemployment is low. The index of wage rates has more than doubled since 1959 (1958 = 100; 1969 248) and as the
=
The
cost of living index has risen much more slowly, real wages
have risen over the period (by an estimated 75%).
shortage of skilled and semi-skilled labour plus competition
among employers rather than trade union pressures
tend
to keep wages rising steadily. In general, wages and conditions of work in Hong Kong are second only to those
in Japan amongst Asian countries.
26.
With the exception of a small neutral and independent segment, workers' unions are organised into two political
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CONFIDENTIAL
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