112

Telex, Hay To Warwick Smith

Port Moresby, 30 May 1967

917. PRIORITY IMMEDIATE PERSONAL

It may be useful for Minister and yourself to have my assessment of situation in Territory at this time following salary determination.1 There have been no official representations by public service officers through official departmental channels. Apparently they are content to let the Association make the running with the results that you know.2 Privately a good many local officers and others outside the service have expressed dissatisfaction and misgiving but we cannot be sure what their true feelings are and assessments such as that of David White in the Age3 are in my view influenced by personal involvement. I have discussed issue with departmental heads and others. We are all hesitant to predict the course of events over the next few weeks. The Public Service Association is publicly committed to the thesis that the situation has manifestly deteriorated. It will thus be to its advantage to be able to demonstrate this and it will want to exploit dissatisfaction. Budding local politicians and others will no doubt also wish to exploit the situation. These are no doubt factors in the plans for a march on Government House (at first thought to be scheduled for last Saturday and now put off to next Saturday 3rd June) from Ela Beach. Association is committed to lawful action but there are openings for others who now see advantage in promoting more spectacular demonstration. We shall need to watch this one closely. Other demonstrations could follow and visiting Ministers (including Mr Kelly4 and Mr Barnes) should not be surprised if they are faced with them. Our expectation is that any demonstration would be orderly but we must face the possibility that they could get out of hand. All this points to need to explain Government position more fully. This we shall do by informal means rather than engage in public debate. I shall keep Under-Secretaries and Administrator’s Council fully in picture.5

[NAA: A452, 1967/3032]

1 For background, see Document 108.

2 In a press release of 11 May, the PSA said it was ‘shocked and appalled’ at the arbitrator’s decision, which was a ‘tragic mistake … [that was] insupportable on any reasoned or reasonable interpretation of the evidence’ (NAA: A452, 1967/3032). Subsequently, the Association asked Holt both to advise the Governor-General to disallow the decision and to meet a deputation from the PSA (letter, J.G. Smith (President, PSA) to Holt, 24 May 1967, ibid.). Meanwhile, in a letter to Sir Henry Bland, Secretary of the Department of Labour and National Service, Warwick Smith reported that it had been learned privately from a member of the PSA that Robert Hawke, an advocate for the Australian Congress of Trade Unions, had been ‘engaged fulltime [in Port Moresby] on the [PSA’s] attitude’ to the decision since it had been handed down (19 May, NAA: A452, 1967/3430). Warwick Smith was later informed that Hawke was ‘a strong influence … if not the prime mover’ in a decision to send a telegram to Barnes requesting disallowance of the decision (minute, Joliffe to Warwick Smith, 20 May 1967, ibid.). Hawke later vigorously denied an allegation by Downs that he had organised the march described below (see Age article, 8 June 1967, NAA: A452, 1967/3032).

3 A series of articles in the Age (some attributed to White and others to Australian Associated Press) gave prominence to negative reactions to the arbitrator’s decision. Drawing on the tenor of these articles, an editorial of 15 May spoke of ‘dismally low rates’ handed out by Matthews and remarked that he ‘does not seem … to have been generous’. It was judged that the decision was likely to engender a feeling that white man’s justice did not work to the advantage of the black man. Indigenous public servants would wonder why they had to be paid as though independence had already arrived—and the people of PNG could ‘hardly be blamed if dissatisfaction with the workings of an institution imposed on their culture leads them to make premature demands for freedom from Australian authority’ ( Age , NLA: mfm NX 41; see also Age articles of 12, 13, 16 and 30 May, ibid.).

4 C.R. Kelly, Minister for Works.

5 On 5 May, Hay had telexed Warwick Smith that immediate comment by the Administration on the decision—other than to ‘interpret … and explain implications’—would be improper because of the need for the decision to be considered by the Governor–General (telex 465, NAA: A452, 1967/3032). The Secretary in turn replied: ‘Your [message] discussed with Minister. Generally he hopes that the matter can be passed off in as low a key as possible … He recognises that in the event of a determination which is regarded by the Association as unacceptable there is a possibility of inflammatory statements by Association which could stir up feelings and provoke demonstrations’ (telex (unnumbered), Warwick Smith to Hay and Somers, 8 May 1967, ibid.).