17.
SECRET
practical roles in their own neighbourhoods, and also in advisory committees. I believe this to
be right in itself, and if it goes well it could be a source of additional strength in the difficult period that must be faced in the '80s. But we would need to watch carefully how the new arrange- ments and the new personalities developed in practice. On no account could we afford to allow new sources of weakness or factionalism in Hong Kong to complicate the resolution of Sino/British problems for which not only judgement and decision will be required, but also confidence between population, Unofficials and Government, and between Hong Kong and H.M.G.
LABOUR CONDITIONS
31.
I realise that the field of
labour conditions in Hong Kong is one of acute sensitivity in the United Kingdom. I can only write about the prospects as I see the local possibilities and the interests of the local population, and having regard to the overriding requirement of maintaining a high level of employment and a rising standard of living.
Trade Unions
32.
Trade unions are divided
politically and fragmented and their membership amounts to only 18% of the work force. We see no immediate prospect of any significant change in this situation, or of the emergence of strong responsible independent trade unions except in the civil service sector. Except for the public utilities, unions themselves seldom make demands upon employers or engage in collective bargaining. Wage barga in ing is usually undertaken by informal groups of workers on a factory or company basis with the Unions acting as advisors in the background. The Communist and Kuomintang Unions, which account for 85% of the unionised work force, have much more the appearance of Friendly Societies than industrial unions,
competing for membership with offers of funeral benefits, picnics, entertainments, etc.
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