TNAG-0531-FCO40-626-Application-of-International-Labour-Convention-to-Hong-Kong-1975 — Page 364

CODE 18-77

RESTRICTED

Reference..

RECEIVED IN REGIST WY!

E1

27 MAY 1:5

Mr O'Keeffe HK/IOD

MEETING BETWEEN THE SECRETARY OF STATE AND MEMBERS OF THE NEC OF THE LABOUR PARTY

EXAMINATION OF TRADE UNION FROBLEMS IN HONG KONG

1.

With regard to para.6 of the record of the above meeting, it might be helpful to have an informal meeting to run over the various pros and cons of a "mini-Donovan" for Hong Kong. My preliminary thoughts are as follows:

(b)

(a) Given the deep political divisions between the two main trade union groups and the continuing reluctance of the Peking-orientated unions to deal with outsiders, a formal inquiry of the Donovan type would not get very far.

Given our own unfortunate industrial relations situation, any such inquiry would arouse deep suspicion among the business community in Hong Kong and would be fiercely opposed by Executive Council and Legislative Council. Given this sensitivity and given what amounts to a degree of contempt in Hong Kong for the way we run our own industrial relations, an inquiry of the kind proposed would raise a political storm and even if persevered in would produce little of substance.

(c)

2. All this suggests that if a fair and dispassionate assessment of the trade union situation in Hong Kong is to be made, the arrangements should be as informal and unpublicised as we can make them. The best way in my view would be to approach this more as a piece of research for an impartial academic,than a Donovan-type inquiry. One name for an assignment of this kind which comes at once to mind is that of Dr W J MacCarthy who is at present Chairman of the Railway Arbitration Tribunal and who was responsible for a major part of the research carried out on behalf of our own Donovan Royal Commission. He is well trusted by our trade union movement and, I think, by the Labour Party and in my view would approach the Hong Kong situation in an objective way.

3. These are just preliminary thoughts that we can talk over when we meet.

2 May 1975

RESTRICTED

G Foggon