TNAG-0575-FCO40-708-Visits-of-Anthony-Crosland--Secretary-of-State-for-Foreign-a-1976 — Page 8

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Summary record of a meeting between the Foreign and Commonwealth Secretary and the Governor of Hong Kong at the VIP Lounge Kai Tak Airpat Hong Kong on Monday 3 May at 1415 hrs

Present: Mr. Crosland

Mr. Cortazzi

Mr. Fergusson.

Sir Murray Maclehose

Sir Dennis Roberts

1. Mr. Crosland said that he was not intending to raise Hong Kong questions during his visit to Peking. He asked how the relationship with China looked from the Hong Kong point of view. Sir M. Maclehose said that the situation was calm and, compared with say 10 years ago, there had been a marked change in the atmosphere, especially since the exchange of Ambassadors between the United Kingdom and China. It was now possible to communicate with the Chinese, and information came both through the British Embassy and from the much greater number of visitors to Feking, who in turn reported in Hong Kong on what they had learned. This greater understanding had led to a marked increase of confidence (he cited the balanced reaction in Hong Kong to a report by US Congressman Woolf about what he had heard in China of Chinese intentions towards Hong Kong at the end of the lease period the report was merely the standard response by a junior official but ten years ago it would have caused a furore).

2. Hr. Crosland said that he looked forward to having more detailed discussons with Sir M. Maclehose when he returned to the UK in June. However, he wanted to stress the considerable pressure on Hong Kong questions with which he had been faced on becoming Foreign and Commonwealth Secretary from within the Labour Party, both from the international Committee of the NEC and, even more important, from the TUC whose International

This Committee he had seen only days after his appointment. pressure was both for trades union participation in the Hong Kong Government (among the unofficial members of the Executive and Legislative Councils) and for social improvements.

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Sir M. Maclehose said that he fully understood these pressures. So far as social legislation was concerned he was himself firmly committed to bringing about improvements. it was his aim that the standard of legislation in the social field and of social security benefits should be comparable with the best in the Far Eastern/South East Asian area ie with that introduced. a somewhat different situation and by different methods, in Singapore. However the question of trades union participation on the Legislative and Executive Councils was a more difficult question. He fully understood the need to find a way of satisfying the important pressure groups in the UK and he wondered whether it would not be possible to satisfy TUC and other pressures by movement on the social side rather than in terms of participation. Mr Crosland said that from what he had

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so far heard it was important that there should be movement over both. Mr Cortazzi referred to the more general requirement that the basis of representation in the Executive and Legislative Councils in Hong Kong should be seen to be broadening.

Sir M Maclehose explained how complex it was to make progress on the trades union side because of the structure of Hong Kong trades unionism. On a minor proportion of the labour force was unionized; of that the bulk were divided between 2 unions, one Communist dominated and one dominated by Kuo Min Tang (Taiwan) interests. Independent trades unionism was an insignificant element.

It was politically impossible to contemplate giving the Communists participation in the Hong Kong Government; and it would provoke very serious reactions from Peking if a KMT representative were to be appointed. So far as the residual independent trades union element was concerned the only possible candidate for appointment was not very credible on personal grounds. However, if in the UK Government's view, it was essential, for optical reasons, that such a move should be made he would do his best, although it would be at some cost to his personal position. In response to a question. about the chances of developing the independent sector of the trades union movement he expressed considerable doubts. A number of attempts had been made and yet another expert, Professor Turner, would be visiting Hong Kong later in the year to survey the scene and prepare a report. But he was not sanguine. It would also be helpful for him to know what the order of priorities in the social field seemed to be, to the TUC and other pressure groups in the UK, so that he could decide in what order it would be advisable to try to take things forward. Mr Crosland said he would have a word with the TUC, either at one of his regular meetings with the International, Committee or in contact with Mr Len Murray, before Sir M Maclehose's next visit to the UK.

3. Mr Crosland said that so far as import controls on Hong Kong products, in particular textiles, were concerned it looked as though HMG were just about able to hold the situation but that. domestic pressures for such action were still strong. Mr Cortazzi commented that HMG's ability to do so depended on the general trading relationship between Britain and Hong Kong. Sir M Maclehose explained to Mr Crosland that he fully understood what was meant; it was the ability of British contractors to bid successfully for business arising from the development of the Hong Kong Mass Transit System. He did not want any requests sent to him in writing since he had fully taken on board how desirable it was that as much business as possible should go to the UK and it would have very adverse consequences on his position if it were to come out that he personally was involved. But he assured Mr Crosland that he was doing what he could to help, especially in discreet direct contact with the British industrialists concerned such as

Lord Nelson of Stafford, and by speaking privately to the Mass Transit Authority.

4 May, 1976

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CC: FED to enter

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PS/Lord Goronwy-Roberts

Mr Cortazzi

Mr Male

verseas Labour Adviser, TED, FED