TNAG-0785-FCO40-989-Study-of-labour-relations-in-Hong-Kong-by-Professor-H-A-Turn-1978 — Page 6

NOTE OF A MEETING HELD AT CONGRESS HOUSE ON WEDNESDAY 3 DECEMBER

1975

Present:

Sir Murray MacLehose KCMG KCVO MBE

Mr T McNally

Mr H R G Hurst

Mr L Murray OBE Mr D McGarvey CBE Miss Audrey Prime Mr T Jackson

Mr J Macgougan Mr T Jenkins

Mr J A Hargreaves

1. The Governor explained the special circumstances of Hong Kong. The Colony was totally dependent for its livelihood on selling its manufactured products in world markets and hence it was essential to maintain its competitive position. This did not mean that the social needs of 4 million people living on 400 square miles of land need be overlooked. Much had been done by way of improvements and expansion in housing, education and medical services; a scheme of Fublic Assistance had been intro- duced and there was a large programme of social welfare activitieɛ for the young and elderly. Nevertheless, many deficiencies would remain for the next 10 years.

2. In the matter of industrial relations, trade unions were free to organise. It was a source of weakness that trade unions were fragmented (there were over 290 unions organising only 300,000 members). The movement was also politically divided. The communist-aligned unions had a membership 6 times as great as that of the KIT unions and refused to participate or collaborate in any way with the Government. On the other hand, if a representa- tive of a KMT union were to be appointed to a Government body, Peking would regard that as an intolerable insult. The trade

unions nevertheless performed a service for their members and

it was by no means unknown for them to achieve increases in wages. They also appeared on behalf of individual members with

grievances.

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Questioned on the present composition of Legislative Council, the Governor pointed to the need to have people who could devote e great deal of their time to the Council's work, which also involved their having access to confidential material. Although present members were drawn largely from commercial, industrial, banking and professional backgrounds, they were all liberally minded. He had been considering a greater social mix and he had in mind that grass-roots representation would come from the Mutual Aid Committees which now totalled some 2,500 and were drawn together by 90 Area Committees. He would keep in mind a

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