TNAG-0522-FCO40-617-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1975 — Page 36

PRIVATE & CONFIDENTIAL

THE LABOUR PARTY

Historical and General

BACKGROUND PAPER ON HONG KONG

INTERNATIONAL DEPARTMENT ID 1973-74/22

and

The Crown Colony of Hong Kong passed

Socond Opium Wars (1841 & 1850 resp) and a later (1898) extension of a 99 year lease on the New Territories. It has an area of just under 400 square miles and a population of just over 4 million. 85% of those live in the 30-odd square miles of Hong Kong Island and Kowloon, where they endure the highost population density in the world. About half aro British subjects. (1) Prior to 1949 the colony derived most of its income from its function as an entrepot for the Chiratrado, with

income ancilliary/from banking, insurance and shipping. Since 1949 it has developed into one of the most important manufacturing centres in nia: it has also become a huge,

Ita if unstable, financial centre with 4 stock exchanges and hundreds of banks. sterling deposits now stand at at least £900m. (possibly larger) and provide roughly

half the backing for the pound.

into British hands as a result of the First

Working Population

There are approximately 1.5 million in the labour force of which 0.6 million are in manufacturing. (ie 41.4%) This is not only the highest percentage in Asia, but the highest percontage in all of the 48 underdeveloped countrios listed by UNCTAD 1972 statistics. (2) HK's manufacturing as a percentage of Gross Domestic Product is also the highest (38%) in those same statistics. Only 59.3% of these were full-time workers in 1966 (3).

Trade Unions and Labour Legislation

Historically, Hong Kong trade unionists played an important part in the development of trade unionism in China as a whole. (4) The 1922 Scaron's Strike (striking for equal pay with European seanon then getting four times the salary for tho sane work) led to a General Strike and was the first major movement of its kind. The 1925-6 General Strike and Boycott nearly toppled the rogine. takon botweon these events and today have resulted in a situation where trado union activity as we know it in UK is virtually impossible in Hong Kong.

Various me:.sures

1. All Unions must be registered by the Rogistrar of Trade Unions

2. All Unions must be industry-specific, i.c. the normal for of union known

in UK, the general union, is banned in HK. (5)

3.

No union is allowed to establish a political fund for its nombors.