CONFIDENTIAL
FROM F CO
CONFIDENTIAL
HHR 178/2/ 20. 54
CA
NC.
2 0 MAR 1979
TO HONG KONG TELEGRAM UNNUMBERED OF 16 MARCH 1979
PEKING TELEGRAM NO 277: UK/CHINA SHIPPING
1. With the firm prospect of increasing trade with China
following Mr Varley's visit, there is now strong pressure
from the UK shipping industry for action to ensure that
British shipping obtains a reasonable share in the carriage
of that trade. Our general aim will be to use the handle
of the Economic Cooperation Agreement to attempt to
negotiate an exchange of letters providing for the equitable
participation in UK/China bilateral trade of the shipping
enterprises of both parties.
We shall be pursuing this
immediately and will be sending separate instructions to
Peking.
2. You should also be aware that while there may not
have been strong pressure from the GCBS for a Maritime
Agreement when we approached you last August (FCO telegram
No 678 of 1 September 1978 and Orr's letter of 8 September
in reply) they are now pressing strongly for the Government
to conclude an Agreement: and you will have seen from TUR
that we are now committed, in response to a Chinese
enquiry, to resuming discussions in Peking.
3.
Earlier negotiations were broken off because of
Chinese unwillingness to accept that the Agreement should
extend to vessels registed or owned in Hong Kong and to
Hong Kong seamen. Consequently the crucial point for any
resumed negotiations will be to establish whether the
Chinese attitude is sufficiently relaxed to bring Hong
Kong into an agreement in some way or whether the only hope of progress lies in accepting a metropolitan
agreement. At this stage, we need to consider all options,
CONFIDENTIAL
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