FLAG A

1.

CONFIDENTIAL

Mr Quantrill

Mr Stewart

SATA DISPUTE

HKK 430/1

RECEIVED IN REGISTRY NO. 51

2 2 MAY 1978

DESK OFFICER

INDEX

PA

REGISTRY

Action Taken

is 165.22/1

165.244 AE

Lord Goronwy-Roberts has now approved the reply to Lord Brockway's letter on this dispute which we submitted on 11 May. With the submission we provided a draft letter to Martin Rowlands pressing for positive action to bring the dispute to an end.

2. In the light of my recent conversation with Martin Rowlands I would like to suggest the following alterations to the draft.

3.

Paragraph 3, delete from "imposed from London" and insert "Indeed on his return, John Thompson explained the very, from your point of view, unfortunate timing of Frank Hooley's PQ. As I understand it, you had intended to call for a new pay review for the secretarial grades which would have provided, or given the excuse to provide, new conditions of service which could have been accepted by all in the grades. You now feel, John tells me, that to do this so soon after the PC would suggest that you were bowing to pressure from the UK and could lead to a rash of disputes being brought to us direct. As a result you feel you must wait some months before going ahead with your plan.

I fully redognise the need for the resolution of this dispute to be seen to be reached in Hong Kong but believe that your fears about future disputes might be exaggerated. Lord Goronwy-Roberts agreed to see SATA because he was satisfied that they had fully explored all the avenues open to them in Hong Kong. Should any similar group approach us without having fulfilled that condition, I am confident that Lord Goronwy-Roberts would refer them back to you. In any case, we cannot, I am afraid, afford to wait for some months."

I would then suggest reverting to the original draft from "we had been pinning" in paragraph 4, line 4 with the further amendment that the present paragraph 5 might begin "If you cannot saon announce the new pay review, I think we must return to our original proposal of arbitration."

4. I attach draft submissions and replies to 3 more MPs' letters about this dispute.

19 May 1978

CONFIDENTIAL

J Thompson

Hong Kong & General Dept

(39)

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