CONFIDENTIAL

DSR 11 (Revised)

DRAFT:

er/teleletter/dette.

FROM:

DEPARTMENT:

SECURITY CLASSIFICATION

TO:

Top Secret

T JB George

Secret

Confidential

Restricted

Unclassified

PRIVACY MARKING

..In Confidence

1.

CAVEAT.

Enclosures-flag(s).................

TEL. NO:

TYPE: Draft/Final 1+

Reference

Your Reference

Copies to:

HKGD, FED, DOT, Shipping Policy Division

SUBJECT: UK-PRC MARITIME AGREEMENT

We agree with the line you propose in paragraph 7 of your teleletter of 15 May. Please now approach the MFA as soon as you consider it appropriate to do so bearing in mind the state of the air services negotiations. If you can speak early enough to maintain the integrity of our draft text (your para 6) then so much the better.

2. In explaining why Hong Kong should be included in any agreement you should draw as approproate on Hong Kong teleno 406 of 21 March and make the following additional points.

a). Hong Kong is not the only overseas port of

British Registry? give list] A metropolitan only agreement would mean that other anbregisters would also be excluded thus leading to a loss of flexibility for British and other] shipowners serving the China trade.

b). The non-recognition by China of Hong Kong ships documents and certificates would apply to ships

of all nationalities (including Chinese) and further restrict flexibility of cargo movements.

CONFIDENTIAL

13.

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