TNAG-1633-FCO40-2249-Ministerial-visits-from-the-UK-to-Hong-Kong--including-visit-1988 — Page 95

1987-09-14 19:00 COMMS. OFFICE (GOV'T HSE)

852 5 845 0995

P.12

Labour Shortage

Background

Labour shortage a major talking point in media lately. While manufacturers suggest importation of foreign labour to ease shortage, workers felt move will pass fruit of HK's prosperity onto unskilled Chinese workers at their expense. There have been proposals to set up industrial zone at border, employing Chinese labour. Government officials have repeated publicly importation of labour would lead to problems and might not be answer to shortage. Reservations also expressed over border industrial zone proposal.

Possible Areas of Interest to Media

(A)

Possible negotiation with Chinese side over importation of labour from China and border industrial zone.

Ok (nwr)

Line to Take: Aware of concern. Understand HKG is continuing to discuss matter with industry and is looking at various ways to increase productivity and efficiency. Confident that long-term solutions can be worked out in best interest of HK.