TNAG-0786-FCO40-990-Policy-of-Government-of-Hong-Kong-on-labour-and-trade-union--1978 — Page 241

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香港下亞

CONFIDENTIAL

畢道

HKKAAVESIN

NMENT SECRETARIAT

RECEIVED IN REGISTY CLOVER ALBERT ROAD

2 5 JUL 1978

DESK OFFICER

HOG KONG

REGISTRY

**** OUR REF.: CR 3/3051/73 II

* Your Ref.:

Refs. attatchel HKK 013/3 (1977)

HKK 212/2 (1976)

W.E. Quantrill/ Esq.,

INDEX

Hong Kong and General Department, Foreign and Commonwealth Office,

LONDON SW1A 2AH,

UNITED KINGDOM

Dear Bill

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GTE Uplayer. for draft N Thompoo of 25/4

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I should like to send a reply: please Consider ittor Achat

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Assessment of Hong Kong's to this sport.

Labour Situation

8224/7

Since we wrote to your Department on this subject on 17th June last year, we have had the opportunity of meeting you and Messrs Stewart, Hurst and Thompson in Hong Kong and discussing with all of you developments in labour relations in Hong Kong. This letter gives our assessment of the labour situation since the last assessment. No doubt you will already be aware of some of the contents.

Labour Market and Wage Rates

2.

Towards the end of 1976 a general view was held that the growth in domestic exports would slow down in 1977. In the event the slowing in the growth of domestic exports turned out to be more severe than had been expected. Where an 8% growth in real terms had been predicted, the result was around 5%. This was due almost entirely to a reduction in demand for imports, particularly of textiles and clothing, from Hong Kong in the European markets.

cc. subto

3.

Nonetheless, labour was generally in short supply at the wage rates offered, as evidenced by the outcries for labour, even in the textiles and clothing industry where business conditions in 1977 were some- what depressed. Growth in domestic activity has been rapid and sectors oriented towards satisfying domestic demand have been attracting labour away from manufacturing

/industry

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CONFIDENTIAL