suggestion made by the TUC representatives that he should look at the third group of trade unions i.e. those who were not affiliated or sympathetic to the HKFTU or HKTUC and who, between them, had a membership of some 48,000. But if any selection. were made from this group, it would be on the basis of the appointee's value to the community as a whole rather than on his role as a trade unionist.
4.
The TUC representatives placed great stress on the third group of independent unions as a possible source of material for widening the social mix of Legislative Council. In their view, to make such an appointment would greatly enhance the stature and effectiveness of the trade union movement. This had been proved by experience elsewhere and they hoped something would come out of this proposal in respect of Hong Kong.
5. Mr Murray referred to his understanding that there would be an academic study of the trade union and industrial relations situation in Hong Kong. In his opinion, and this was supported by the other TUC representatives, the value of the survey would be greatly increased if a TUC (and CBI) representative were added to the teain. This was not intended in any way to disparage Dr McCarthy, who was well known to and respected by the TUC, but was made in the belief that the study must be given a practical bias and to this end people with actual industrial and trade union experience were needed. Fossibly a researcher could make preliminary enquiries in Hong Kong and his material could then be studied by the TUC and CBI members of the team, who would then make an on-the-spot study in Hong Kong lasting, say, 3 or 4 weeks. The details of the project might be worked out in the Overseas Labour Consultative Committee.
6. The Governor made it clear that he would prefer a low profile unpublicised survey by an academic working in Hong Kong in collaboration with the University of Hong Kong and with such assistance as the Department of Labour could provide. Such a study would fit well into the pattern of academic research which is continually taking place in Hong Kong.
7. Mr Jackson made the point that some trade union concern in this country over the situation in Hong Kong is based largely on the Colony's ability to undersell British manufacturers because of its low wage economy. In his view, normal trade union activity in Hong Kong by way of collective bargaining would help to increase wages to a point where cut-throat competition could be reduced. He acknowledged that competition would still exist from South Korea and Taiway but Hong Kong was a British Colony and he thought something should be done about it. The-Governor commented that where damage is proved, the Hong Kong Government had never refused to enter into consultations and he referred to current agreements which restrict Hong Kong's exports.
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