From The Minister of State

THE RT HON THE LORD GORONWY-ROBERTS

Near Frank,

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Foreign and Commonwealth Office

London SW1A 2AH

22 December 1977

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I wrote to you on 17 November to let you know that John Stewart had suggested to the Hong Kong Government that they might consider appointing an independant arbitrator in the dispute with the Shorthand and Audio-Typists Association.

It seemed to me that this might provide a way of moving towards a solution to this problem. However, the Hong Kong Government have explained to me why they believe it would not be appropriate to adopt this suggestion, at least at this stage. They put forward two basic arguments, which I believe we must accept as valid.

To begin with, they do not want to jeopardise a major new scheme which they are about to introduce which will at last set up a proper machinery for dealing with disputes in the public service. The new scheme has already been informally discussed with representatives of the staff, and it is hoped that the process of formal discussions will start soon. The outcome could well be agreement on the introduction of procedures that will include arbitration in the final stages, but only after a thorough process of consultation The Hong Kong Government believe that to agree at this time to arbitration in a particular case could prejudice the outcome of these negotiations and thus ruin the opportunity to achieve an important step forward in industrial relations in the Hong Kong public sector.

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Secondly, the Hong Kong Government were influenced by the fact that the majority of the staff involved some 94% of the secretarial class as a whole, and 58% even of the members of the Shorthand and Audio- Typists Association have accepted the Government's proposals. They are concerned about the effects on this majority if they now appoint an arbitrator to look into the complaints of the remaining minority.

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In accepting these arguments, I shall ask the Hong Kong Government to keep the case under close review, and to make use of the new procedures as soon as they are agreed to settle this dispute provided it has not proved possible in the meantime to arrive at a satisfactory agreement through the continuing process of consultation.

Mr Frank Hooley MP House of Commons LONDON SWLA OAA

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Best wishes for Cars and

The New [ior.

Your ever

Torenvy.

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