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unionists in the two main Associations and thus was attracted to the idea of a low profile study to be undertaken by someone of the calibre of Dr W R McCarthy, at present Chairman of the Railway Arbitration Tribunal. Dr McCarthy undertook a major part of the research undertaken by the Donovan Commission and is generally thought of here as someone who can be relied upon to approach the Hong Kong situation in an objective and practical way. We pointed out the delicacy of the situation and the need to work out modalities with you very carefully. I shall write to you further when this idea has been developed a little further: the answer may well be to commission Dr McCarthy to undertake an academic research project involving a number of visits to Hong Kong over a couple of years with funds from the ODM programme for social and economic research.
6.
Speaking more generally, Mr Callaghan wondered whether the Labour Advisory Board could be developed into a body with wider terms of reference to give advice on economic and social matters besides the narrower field of industrial and labour relations. He speculated on the possibility of a quadripartite organisation consisting of the Government, the employers, the communist and the non-communist trade unions. On being reminded of the non-cooperation of the communist trade unions, he said that he would like to give more thought to the possibility of discussing the desirability of more active communist trade union interest in the processes of Government with the Chinese on his visit next year. This, I should say, is very much still an open question but he expressed interest in the idea of such a body even if vacancies have to be left for the communist trade unions in case at some future date they wished to participate in the consideration of matters affecting their members.
7. Finally, he thought there was much merit in the proposition that the Hong Kong Trade Unions Ordinance could do with some simplification, particularly given that some of the requirements of the law (e.g. the amalgamation of trade unions) were rather more restrictive in letter and in theory than in practice. He saw no objection to this matter being explored in correspondence between the Overseas Labour Adviser and your Labour Commissioner.
8. Once again, Hr Callaghan paid a warm tribute to your administration of the Colony and expressed his appreciation of the various measures for social and other reform that you
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