8.
6
Line to take
You should therefore seek to negotiate an understanding to this effect, preferably in the form of an exchange of letters or an agreed declaration or minute which can be annexed to the Agreement once this is signed. DoI will brief Mr Varley to speak of the importance we attach to getting such an understanding.
As to the
exact words, referring to those already put to the Chinese (para 5 above) the key concepts are 'equitable' and 'remunerative'. We are not tied to 'equitable', especially if the Chinese think this means 'equal' - 'reasonable' would be an acceptable substitut 40% is the sort of share to which we would be looking over time bu we see no particular advantage in attempting to specify a figure, which the Chinese would almost certainly reject anyway. Nor are w tied to the term 'remunerative'. What we mean is that the shares have to be held on bases which on our side are commercially viable Substitutes here would be financially advantageous' or 'financial beneficial'. Once an understanding has been reached we envisage regular discussions between officials of both governments together: with shipowners (on our side) to see how the understanding can be carried into effect and to monitor progresss
9. . If the Chinese refuse to negotiate such an understanding you shoul explore thoroughly their grounds. You should stress the importanc which we quite reasonably and properly attach, as a major maritime nation, to an understanding. You could refer to the importance of the UK shipping industry to our overall financial account and to th difficulties in which it finds itself due to the general recession. You should ask them to explain how the absence of an understanding is compatible with the declarations in the Preamble and Article 1 the ECA and with the reference to shipping in Article 3. You shou ask how other than through such an understanding the mutually bene- ficial cooperation we both desire in the shipping field can be