of specific points which I undertook to consider.

We have just heard from Hong Kong that they are

conducting a further round of discussions with their

shipowners in the light of the talks I had in

Hong Kong and have asked to delay a formal reply

to our consultative document until early June. I

have asked them to reply sooner than this if at all

possible and I am doing all I can to resolve the

issue as quickly as possible. However, it is clearly

impossible to make a decision before we have the

Hong Kong Government's further views and it may well

be necessary to go back to our shipowners and unions

then since we must make every effort to carry them

with us as far as we can.

I assure you that no unnecessary time will be lost

and I propose to keep you in regular touch with

developments.

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