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preparation of prosecutions would seem essential, if the inspectorate is not to be too much "desk-bound". A more determined approach to prosecutions would also be an advantage externally. The Commercial Attaché in Washington (in Saving No. 3 of 11 February 1967) has drawn attention to a comment by Mrs. Jager of the A. F. L./ C.I.0. that fines for offences against Hong Kong's labour laws seemed to be absurdly low. It was a justifiable
comment.
Industrial Relations
13. It is superfluous to analyse here in detail the present state of industrial relations. That has already
been done by the Department of Labour. The salient
points will suffice. The divisions between the two
main trade union groups - the Hong Kong Federation of Trade Unions (F.T.U.) and the Hong Kong and Kowloon
Trades Union Council (T.U.C.) and the character of local employment with its predominance of small employers,
are the principal factors which have impeded the growth
of trade union membership and reduced the effectiveness
of trade union action. A policy of encouraging the formation and development of trade unions in Hong Kong
has been followed by the Government for almost twenty
years, but these weaknesses persist and only a small proportion (about 10%) of the total working population
has considered it worthwhile to join a trade union.
The interplay of economic forces and paternalism have
therefore been the principal agents in recent times for
the improvement of the lot of the Hong Kong worker.
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14. Recent events and past history have made it unlikely
that this situation will change in any marked degree. Indeed, the position of the F.T.U. has been seriously
almost fatally weakened by these events. The firm
action of employers in the Public Utilities in dismissing
striking workers called out by the F.T.U. has led to the virtual disappearance of left-wing F.T.U. supporters from these key services and to the near elimination of the F.T.U.'s power to interfere in these services through industrial action. About 10,000 workers are involved (although figures as low as 7,500 have also been mentioned). Many of these workers are receiving strike pay from communist sources, but it is unlikely that this can be continued for very long. (Potentially, this
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