TNAG-0940-FCO40-1159-Visits-by-Foreign-and-Commonwealth-Ministers-and-officials-t-1980 — Page 127

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scheme may be necessary, though the Commissioner for Labour does not agree. The recent Turner Report on Labour Relations, while generally not umsympathetic to Hong Kong's problems,is likely to reopen debate, with its recommendation. of a minimum wage. will of course depend on the course of the economy. recession and consequent widespread unemployment would bring industrial problems starkly to the fore and at the same time strengthen the arguments that no interference should be allowed which could harm Hong Kong's competitiveness.

Attitudes to Britain

Any serious

18. The UMELCO and URBCO members do find common ground on Anglo/ Hong Kong issues. Apart from the Nationality question, there is a general feeling that Hong Kong is misunderstood in London. There are complaints of a lack of interest by British exporters and particularly investors. At the same time there is a good deal of misunderstanding of Britain on the Hong Kong part. They know, in an academic sense, that we are poor, but they do not appreciate fully the reality of the Government's economy measures and they continue to protest, for instance, at the rise in overseas student fees in the UK.

19. There is nevertheless a marked improvement in Anglo/Hong Kong relations and appreciation of the understanding attitude of HMG. Suspicions remain, for instance on textiles, where the renegotiation of the Multifibre Arrangement is likely to reopen some sores, but even there we are believed to be more understanding of Hong Kong's problems. Certainly the increase in Ministerial visits is recognised as showing genuine interest. Paradoxically, we may in the coming months have to guard against overkill in this area.

18 March 1980

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R D Clift

Hong Kong and General Department

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PS/Mr Blaker

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