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63A

us on the policy issues prior to the discussions in ExCo.

Argument

5.

Contrary to paragraph 14 of the ExCo Memorandum, the existing

practice in the UK Civil Service and HM Diplomatic Service is that

in similar circumstances an officer is regarded as absent without

authority and is liable to have his pay stopped for the period of his

absence. He is not officially suspended and the loss of pay is there-

fore self-inflicted. In addition, suspension is not used in handling

official trade union disputes. The Hong Kong Government, on the

other hand, have already taken measure in disputes involving civil

service unions in excess of those which would be taken by HMG in

similar circumstances. HMG have found its existing powers sufficient

and the Hong Kong Government have not advanced any reasons why they

in practice need the proposed additional ones. It may be that they

have misunderstood the practice in this country.

6. The subject of Civil Service pay disputes in Hong Kong has attracted

considerable attention in the UK. The Hong Kong Civil Servants'

General Union has made representations to the Secretary of State,

MPS,

the TUC's International Committee, the Public Services

International and to the ILO. Mr Robert Parry MP put down eight PQs

concerning the disputes and arbitration procedures in August.

7. An amendment to the Letters Patent would have to be made by Her

Majesty in Council on the advice of the Secretary of State. It is

unlikely that this would escape Parliamentary attention.

If made, the

amendment could, therefore, cause HMG embarrassment. However, if the

Hong Kong Government can advance overriding reasons for requiring these

powers, it would be more satisfactory for them to be secured through

the Hong Kong legislative process since this would attract less

CONFIDENTIAL

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