CONFIDENTIAL

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5. In addition we should like you to discuss dates for a resumption of discussions on the Maritime Agreement. The forthcoming visit to Peking of the Governor of Hong Kong could provide an opportunity to gauge Chinese attitudes to the vexed question of the inclusion of Hong Kong. We are telegraphing the Governor for his advice as to how Hong Kong interests would be adversely affected by an Agreement which excluded Hong Kong shipping; and conversely what would be the minimum safeguards and assurances that would need to be obtained if Hong Kong is included. We should be grateful to know if you see any serious pitfalls in this scenario. An account of progress made in the earlier discussion and briefing on the main issues follow by bag.

A J Ramsay

Copy (by bag): Dr Wilson, Hong Kong

bcc:

Mr Morris, SPD

Mr Pryor, SPD

Mr Brown, SPD

Mr Priston, CRE4

Mr Cortazzi

Mr Murray Miss Brown

HKGD FED

DOT'

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