Mr Wilford

Mr Guest

CONFIDENTIAL

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RV

Sir Deries Greenhill

MEETING BETWEEN MR Y K PAO AND ME ON 5 JUNE

HONG KONG REGISTER OF SHIPPING

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1

When Mr Heseltine was in Hong Kong on 31 March/1 April

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he discussed the question of a separate Hong Kong register of

shipping with the Governor and representatives of the Hong Kong

shipowners, including Y K Pao, C Y Tung, Butterfield & Swire,

Jardines and Wah Kwong . Y K Pao has objected to being

bracketed with these others, but it is not quite clear why,

unless the British owners took too much of a UK line. No

Taiwanese or communist owners were consulted.

2.

Mr Heseltine left with the Governor a draft consultative

document which was to be discussed further with the Hong Kong

ship-owning industry and also with the UK shipping interests.

Since then the Hong Kong Director of Marine has circulated his

own paper in Hong Kong. This is a fairly disingenuous document

which appears to offer as a possibility things which Mr Heseltine

has said are not negotiable (eg the acceptance of Taiwanese

Masters certificates). The DTI have commented on this, rather

incoherently (FCO telegram No 513). But meanwhile the Hong Kong

owners were asked to indicate what tonnage they would be prepared

to put on the Hong Kong register on the basis of the concessions

offered or negotiable. The Governor has promised us an answer

by the end of May if possible. This has not yet come.

the Prime Minister is getting impatient.

Meanwhile

CONFIDENTIAL

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