existence of trade unions with KMT and Communist affiliations in Hong Kong. Nonetheless they thought the Hong Kong Government should take action to strengthen the moderate and independent trade union movement there. They were, of course, in favour of the enquiry into labour relations in the Colony but thought that Dr McCarthy's nominee would need the backing of a nominee each from the CBI and the UC. Bir lurray HacLehose said he was not in favour of this because it did not suggest impartiality. To have any success the enquiry would have to be handled very quietly in cooperation with a Hong Kong University. A semi-political enquiry at this stage would be harmful. After further discussion, Nr Callaghan said that at his next meeting with the TUC on 8 December he would support the idea of the low profil examination of the facts. If this study revealed areas where the CBI and TUC might be able to help, this would be for later consideration. Dir furray MacLehose agreed that this seemed the wisest course.
7.
Hr McNally added that the TUC had also spoken in favour of broadening the social base of the Legislative Council; but Sir riurray lacLehose had been able to reassure them on this point. They had also been concerned about unfair competition in the textile field. ~ir Murray MacLehose explained that he had told the TUC that the old image of Hong Kong as a sweat shop no longer applied. Hong Kong textiles were now high quality and wages had greatly improved in recent years. He was glad to hear the representative of the garment workers present at the TUC meeting say that he had recently visited the Colony and found conditions much better than they had been.
lieeting with the Hong Kong Parliamentary Group
8.
Sir Murray MacLehose explained that attendance at this had been exclusively from the Conservative side of the House, doubtless because he would be having a meeting with the PLP later. The Hong Kong Farliamentary Group had supported the case for widening the social basis of the Legislative Council. There had also been some discussion of illegal immigration led by Mr Wall and Mr Rees. Mr Wall was clearly influenced by propaganda from Taiwan. When the Governor had explained
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