TNAG-0651-FCO40-799-Interests-of-UK-Labour-Party-and-trade-unions-in-labour-affa-1977 — Page 34

CONFIDENTIAL

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that without the British connection Hong Kong in its present form would cease to exist and it is acknowledged, even if

grudgingly at times, that where UK interests are involved the

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last word rests with HMG. However, local awareness of Hong Kong's importance as a trading power and the Chinese sociological attitudes prevailing there, often leads to demands that decisions on what are regarded as purely local matters should be taken without regard for the possible implications for the UK.

10.

Relations with Hong Kong are therefore rarely straightforward and there are a number of issues underlying the present relationship between the UK and Hong Kong.

Social Progress

11. There is some critical interest in labour and social conditions

in Hong Kong amongst various sectors of UK public opinion, including the TUC and the NEC of the Labour party. This was given fresh stimulus a year ago by the publication of a Fabian Society pamphlet entitled "Hong Kong: Britain's Responsibility" written by Joe England. In considering criticisms of labour and social conditions in Hong Kong it should be remembered that the Hong Kong Government continues to face grave problems in the social field resulting mainly from a seven-fold increase in population since 1945. The present Governor, who was appointed in late 1971 and whose term of office has been extended until November 1978, has done much to promote social and labour policies more in line with currently acceptable standards. An increasing proportion of public expenditure is being spent to improve the lot of the lower income groups in Hong Kong. The Hong Kong Government has already provided free primary education for every child up to the age of 12 and is aiming, by September 1978, to provide subsidised secondary education for all children up to the age of 14 and for 40% of those up to the age of 16. In the field of housing 1.7 million, or 43% of the population, have already been accommodated in government-subsidised housing and there are plans to provide public housing for a total of 3.3 million

/ or 54% of

CONFIDENTIAL