TNAG-0823-FCO40-1030-Policy-on-salaries-for-civil-servants-in-Hong-Kong-1978 — Page 32

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4.

We have not been able to wait for Professor Turner's final report, but we have of course had in mind all along the whole question of mediation and arbitration. Our present idea is that the new body should gradually develop its own procedures for consulting staff and so on, taking public opinion along with it as it evolves. However, even the initial concept of an independent

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advisory body which will look at the arguments of both the Official and the Staff Sides before advising on the salary scale in question is in essence a form of arbitration, although we are very wary at this stage of describing it as such. We will need to see how it develops.

5.

We are now clearing draft terms of reference within the Secretariat prior to consulting the Staff Side, and I will keep you informed of developments. The initial press and staff association reaction to the announcement has been good, although associations naturally want to know more details before committing themselves.

6.

Incidentally, I expect from now on to gradually hive off my appointments and other work so as to be free to devote myself full-time to dealing with pay matters and in particular to preparing for the Commission. I will let you know who will be taking over the other aspects of my work.

Yours col

Hamish

(N.W.H. Macleod )

for Secretary for the Civil Service

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