TNAG-0648-FCO40-796-Study-of-labour-relations-in-Hong-Kong-by-Professor-H-A-Turn-1977 — Page 145

Mr Cortazzi

PS/Lord Goropy-Roperts

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HONG KONG: PROFESSOR TURNER'S STUDY OF LABOUR RELATIONS

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1. The Secretary of State queried the Governor's view that it

would not be proper for him to comment on Professor Turner's report until his study had been completed. (Mr Stewart's submission of 16 March.:) I understand that the Secretary of State subsequently

told the Overseas Labour Adviser that the Governor should be asked

to comment on Professor Turner's interim report. I reported this by telegram to Mr Stewart, who was by that time in Hong Kong, and asked him to inform the Governor. I now attach a copy of Hong Kong telegram FLAG B no. 328 of, 29 March in which the Governor explains why he does not

propose to comment in detail on Professor Turner's interim report but goes on to offer some general observations on it.

2. The TUC is now considering Professor Turner's report and may wish to offer guidance on the direction that his further study should take. So, too, may the CBI. Their advice will have to be carefully assessed when any new terms of reference are worked out for Professor Turner's further study. In addition, we shall need to be careful to ensure that Professor Turner's preliminary conclusions with regard to social matters are not overlooked. These are that there would be "very wide support" for a social security scheme linked with the purchase of housing and for a reform of the educational system and also that there is a need for some kind of general legal FLAG C minimum wage. (Paragraphs 77 and 80(i) of Professor Turner's

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report, to which, inter alia, Mr Cortazzi has drawn particular atention.)

3. The UK expert mentioned in paragraph 3(b) of the Governor's telegram is Mr Heppell of the Department of Health and Social Security. The department and the OLA have already briefed him on the importance we attach to the review of Hong Kong's social security arrangements opening the way to a wider scheme of non-means-tested benefits. We have also given Mr Heppell a copy of Professor Turner's

report.

CONFIDENTIAL

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