:

UK/CHINA SHIPPING AGREEMENT

Points for Consideration

1)

What are UK interests?

2)

(i) To obtain agreement on cargo sharing in bilateral trade.

(ii) To obtain agreement on a number of technical shipping.

matters (DOT should provide details).

How can these objectives be achieved?

(i) An exchange of letters under the ECA, covering essentially

cargo sharing.

or (ii) A separate Maritime Agreement which would also cover

other shipping matters.

3)

Hong Kong Interests

(i) Need to avoid opening up the question of the status of

Hong Kong, which would create political and practical

difficulties.

(ii) Do these difficulties make inclusion of Hong Kong in a

If so

Maritime Agreement a non-starter?

(iii) What would be the political, economic and practical

consequences of a Maritime Agreement which excluded

Hong Kong?

4) Options

(i) An exchange of letters under the ECA.

Advantages:

(a) Provides us with maximum political leverage to achieve

our main objective on cargo sharing. (Dr Owen's visit

would provide a good occasion to complete the agreement.)

/(b)

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