16.

CONFIDENTIAL

(ii) The concept of a compulsory cooling-off period in

any dispute damaging to the national interest is gaining increasingly wide acceptance.

(There may

(iii)

(iv)

be a case for increasing the cooling-off period where this is set at 14 anys to, say, 28 days or longer.)

Compulsory arbitration in such disputos is a weapon of last resort: there is a need for some flexibility, og the Governor (or Minister) to have discretion whether or not to apply it in particular casos. This appling oqually to the imposition of a cooling-off period.

There cannot be any guarantee that work will be resumed when a dispute is sent to arbitration, or a cooling-off period imposed; nor can it be assumed that any award handed down by an Industrial Court (or arbitrator) will be accopted. Compulsory arbitration raises the question of sanctions in a somewhat more acute form then does the imposition of the "cooling-off" period.

In the circumstances of Hong Kong, the choice may lic botween:-

(i)

(ii)

A general power placed upon the Governor to impose

"cooling-off" period in any strike likely to endanger the national economy following the new United Kingdom practice (it has long been the practice in the United States).

A more restricted power to enforce a "cooling-off" period in defined essential services.

(See also paragraphs 5-7 of report).

Overseas Labour Adviser Foreign and Commonwealth Office

20 December 1971

CONFIDENTIAL

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