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B

C

The

handsome salary increases to all the discipline services

generally, the Police fared worst in relative terms. Police have also had mounting difficulties in recruiting and retaining manpower.

4.

Recently the Police Associations have taken their

complaints more public. They have complained about delays in examining their case and are dissatisfied with their own

internal consultative mechanism. There have been numerous

articles in the press about the dispute and the Hong Kong

Government's response to it. I attach several recent articles on the subject.

5. We have consulted Hong Kong about how to respond to this

request. The Acting Governor's advice is attached. He

advises that the delegation should be received at no higher

than Head of Department level.

6.

I agree with this advice. We should not allow ourselves to get embroiled too closely in this dispute. While the

problems undoubtedly relate ultimately to worries about

1997, pay and conditions of service are entirely a matter

for the Hong Kong Government. The consultative machinery

also falls into this category. Nevertheless the situation could become considerably more serious. I suggest therefore

that Lord Caithness could meet the Civil Service

Associations when he is in Hong Kong and the Police could

make their views known to him then. It is in any case

normal practice for visiting FCO Ministers to see lobby groups on a variety of subjects.

There is a mine, field of

issues here which we shall need to discurs with the Munster

Bul. Zagree with the achan

SIPALM/2 Propoud

ARPANC

A R Paul

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Tandrew Euns

24/8

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