Port Moresby, 5 August 1966
Secret
Unrest in the Territory
The tension that has existed amongst indigenous police, soldiers, public servants and students, caused by dissatisfaction with pay and conditions of service, has eased following the introduction of the cash conversion scheme for the two former groups and the uncertainty resulting from the announcement regarding the revised Public Service salary scale which will ultimately affect all groups.1
2. Despite the easing of tension, dissatisfaction with current rates of pay still exists amongst all groups. The fundamental cause of the dissatisfaction remains the resentment of indigenes towards wage differentials. Police and soldiers were disappointed that they did not receive the substantial salary increases they had expected. The announcement of the 11th July regarding the revised Public Service salary scale has again raised the expectations of all groups, who, whilst not understanding the implications of the revision, are under the impression that it will provide for substantial pay increases.
3. Whilst all groups continue to expect salary increases, they are confused over the issues involved and are unaware of the amount of actual cash in hand they will ultimately receive under the revised rates, and whether or not increases, if any, will be absorbed under the non-reduction allowance principle. Because of the confusion it is difficult to predict future reactions. They will probably be delayed until the new salary determinations are completed and revised rates of actual cash in hand are received.
4. The critical period, 14th to 31st July, passed without incident in PORT MORESBY. The reason for this was the announcement regarding increased Public Service salaries. Should the revised rates not be up to expectations, the possibility remains that reaction may involve direct protests, inciuding strikes and demonstrations.2
[ matter omitted ]
[NAA: A452, 1966/842]
1 On 11 July, the Administration announced a revised wage scale for indigenous officers of the public service. The new scale included a family needs test and more classifications within the base wage range. In response, the PSA said it would continue with its case, though counsel representing the Administration, H. Wooten, said the changes were not an interim measure, but represented a considered judgement ( South Pacific Post , 11 July 1966, NLA: NX 342).
2 A team of DOT officials visited Africa in August and September for the purpose of making a ‘factual assessment of conditions in other countries with similar development problems’, after which it would ‘present oral evidence to the Arbitrator’ (cablegram 257, DEA to Nairobi, 16 August 1966, NAA: A1838, 846/1 part I). In providing background, the cablegram noted: ‘The Administration has … made an offer [to the PNG Public Service Association] designed to meet the needs of officers with family responsibilities and to encourage progress to senior positions. The Association’s claim is however substantially higher and if successful is likely to act as a pace-setter for pay rises throughout the Territory. These will have inter alia adverse affects on the development of export production’.