CR 400A

PRTORITY

CER CAT A

FM F C 0 141623Z

CONFIDENTIAL

CONFIDENTIAL HKK 430/1.

RECEIVED IN REGSRY MYST

So 64

(65)

INDEX

15 JUNIO

no

RA

TO PRIORITY HONG KONG TELNO 461 CF 14 JUNE 1978.

PERSONAL FOR GOVERNOR FROM MURRAY.

Action T, NO

रहा

63

1. I SHOULD BE GRATEFUL IF YOU WOULD TAKE ANOTHER LOOK AT THE PAPERS ABOUT THE SATA DISPUTE ENDING WITH HONG KONG TELEGRAM NO 703. I REALIZE THAT, SEEN FROM HONG KONG, IT IS A MINOR ISSUE WHICH WOULD DIE QUIETLY IF LEFT TO DO SO. BUT IT IS VERY MUCH A LIVE ISSUE HERE. THE SATA MEMBERS WHO REMAIN IN DISPUTE WITH THE HONG KONG GOVERNMENT HAVE SUCCEEDED IN AROUSING A GOOD DEAL OF PARLIAMENTARY INTEREST IN, AND SUPPORT FOR, THEIR CASE, AND MPS SIMPLY DO NOT UNDERSTAND THE ATTITUDE WHICH THE HONG KONG GOVERNMENT HAVE SO FAR ADOPTED. FACED WITH THIS PRESSURE, MINISTERS FEEL STRONGLY THAT THE TIME HAS NOW COME FOR A POSITIVE MOVE AT YOUR END WHICH WOULD ENABLE THE DISPUTE TO BE RESOLVED ONCE AND FOR ALL. HENCE JOHN STEWART'S LETTER OF 19 MAY TO MARTIN ROWLANDS.

2. IN REPLYING TO THE LATEST BATCH OF MPS' LETTERS MINISTERS HAVE SAID THAT THEY HOPE THE NEW SECRETARY FOR THE CIVIL SERVICE WILL BE ABLE TO BRING A FRESH APPROACH TO THE DISPUTE AND FIND A SOLUTION ACCEPTABLE TO BOTH SIDES. THEY HAVE ALSO EXPRESSED THEIR OWN CONCERN THAT A SOLUTION SHOULD BE FOUND QUICKLY. HONG KONG TELNO 729 REFERS ONLY TO THE POSSIBILITY OF A PAY SURVEY IN LATE 1978 OR EARLY 1979 AND, MOREOVER, ASKS THAT NO PUBLIC REFERENCE TO THIS SHOULD BE MADE FOR THE TIME BEING, IT THUS PROVIDES US WITH ABSOLUTELY NOTHING NEV TO SAY AND I AM AFRAID THAT MINISTERS WILL NOT REGARD IT AS VERY

HELPFUL.

3. ARBITRATION IN AN INDUSTRIAL DISPUTE IS SUCH AN ACCEPTED PROCEDURE IN UK THAT IN THE ABSENCE OF ANY INDICATION OF INITIATIVES TOWARDS A SETTLEMENT IT IS REALLY VERY DIFFICULT TO EXPLAIN WHY IT HAS NOT BEEN ADOPTED, AT PRESENT THERE ARE TWO POSSIBLE COURSE WHICH WOULD SATISFY OPINION HERE:

CONFIDENTIAL

/A) THE

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