CONFIDENTIAL

Reference...

FOR

RECEIVED IN REGISTRY No 51 21 AUG 1914

Mr Dinwiddy

НКК

HKK.21|/|~

REPAIRS TO SOVIET VESSELS IN HONG KONG

1.

Kudryavtsev, the Soviet Consul, called on me at 11 am today at his own request. He made the following oral communication.

"For several years Soviet cargo and passenger ships have been repaired at the Hong Kong docks under the auspices of Sudoimport. Between 1970 - 72 thirty-one ships were repaired at a cost of 41 million roubles. In 1973 twenty ships were repaired to a value of 2 million roubles. In the first half of this year twelve ships have been repaired costing 11 million roubles.

"At the same time the Soviet side would like to draw the attention of the Foreign Office to the fact that the local Hong Kong immigration authorities, referring allegedly to instructions from London, make certain demands on the crews of Soviet ships in Hong Kong for repairs. These demands are of a clearly discriminatory character. On arrival photos of Soviet seamen are specially taken. Parties of only five persons are allowed to go ashore during the day. Sometimes during the stay of a ship immigration, officers come aboard late in the evening for roll call of the members of the crew. Recently matters reached such a pitch that the authorities have come to demand that the crews of passenger ships be cut by 50% and those of cargo ships by 25%. Irrespective of the port from which a ship has arrived and to where it is going after repair, those members of Soviet crews, who are considered to be in excess, are required to leave Hong Kong by the first Soviet vessel regardless of its port of destination.

"Such discriminatory policy of the local authorities of Hong Kong is contrary to the established practice of Soviet-British relations in the field of navigation This policy cannot but harm normal commercial relations which are being maintained by Soviet organisations with Hong Kong firms and

se with (the Soviet. British Merchant Navigation Trenty of (168.

11

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The Soviet Embassy expresses the hope that the British authorities will take speedy steps for the creation of normal generally established conditions for the stay of crews of Soviet ships which are under repair in Hong Kong."

2. I made no substantive comment on Kudryavtsev's oral communication. I said that I would refer his démarche to the appropriate authorities which would, of course, include the Hong Kong Government. I added that despite the oral communication's reference to instructions from London, the matter fell within the competence of the Hong Kong authorities. We would reply to the Soviet approach in due course.

13.

CONFIDENTIAL

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