TNAG-0445-FCO40-510-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1974 — Page 140

CONFIDENTIAL

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position in recent years has been that, with high mobility of labour and the general shortage of labour, no manufacturing industry has paid wages markedly below others (the construction industry has paid even higher wages). Therefore, the average wage levels remains similar across the industrial and commercial sectors. The problem then, if it arises, is likely to be of general rather than particular incidence on labour.

26.

We remain strongly opposed to a general minimum wage, because it is likely to result in increased unemployment rather than the more easily accomodated under-employment, and indeed we also foresee formidable implementation problems if such legislation were to be introduced. It is, however, conceivable if the economic situation were to deteriorate very seriously that the position could arise where the public assistance scheme became swamped and represented an unacceptable drain on public funds; part of the burden might then have to be shared with employers by the introduction of a general minimum wage, though this might be of little value unless some form of job security could be encouraged or enforced. While this situation is not envisaged it is considered that it would be prudent to examine the possibility on a contingency plan basis and the Commissioner of Labour is therefore instituting a discreet study of the potential problems.

CONFIDENTIAL