5. The Government do not accept the Association's criticisms other than very minor ones, of the PIU: unlike the Hong Kong Productivity Centre's "Report on Salary Trends", the PIB's surveys are tailored to the particular circumstances of the Government and the markers used are carefully selected to represent comparable staff in comparable work. The surveys take full account of all matters relevant to total remuneration, including non-cash fringe benefits such as pension rights. The Unit is independent and impartial its procedures are very similar to those of the Pay Research Unit in the United Kingdom.

6. On promotion prospects, the Government point out that the shorthand and audio-typists are eligible for promotion to the rank of Personal Secretary, and to the newly created posts of Supervisor of Typing Services, The fact that promotion prospects are at present limited because of the large number of redundant Personal Secretaries resulting from the reorganization is a temporary phenomenon, which the Government estimate will largely disappear by the end of 1978.

7. Because of their failure to make progress in Hong Kong, SATA have, over the past six months, been waging a campaign to gain support in this country, Mrs Cheung,

Mrs Cheung, the Chairman of SATA wrote to, among others, Mr Frank Hooley MP and Mr James Johnson MP, who took up their case with HMG, Mr Hooley suggested than an independent arbitrator might be appointed; Lord Goronwy-Roberts instructed Mr Stewart, who visited Hong Kong last October, to discuss this possibility with the Hong Kong Government.

8. The Hong Kong Government are, however, reluctant to appoint an arbitrator at this stage lest, by doing so, they prejudice a new procedure for handling labour disputes within the public service which is about to be proposed to staff side representatives. They are also influenced by their belief that a majority of the staff involved have already accepted the proposals which are the cause of the dispute. Lord Goronwy-Roberts has written to Mr Hooley and Mr Johnson explaining this position.

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