CONFIDENTIAL
PA
M S Morris Esq
Shipping Policy Division Department of Trade
1 Victoria Street LONDON SW1
Miss G G BROWN, CMG
Room G69/1
Foreign and Commonwealth Office
London SW1A 2AH
2 February 1979
RECEIVED
PA
Nis
20.51
Jean Michael
SOVIET AND CHINESE SHIPPING MATTERS
1. At our discussion on 4 January I undertook to look into some points you raised with regard to our shipping relations with the USSR and China. I am sorry this reply has been delayed.
2. You asked about the best method of conveying to the Russians our request for information about their trade between the UK and East Africa, and whether their concentration on the East Africa trades was mainly politically inspired. On the first point we think it would be best for you to ask a Soviet Embassy official to call, accompanied by a representative of Anglo/Soviet Shipping, since Mr Novikov on his own would almost certainly deflect any request for information. On the second point we think that, given the strategic importance of Africa for the Soviet Union (and for us) and the strategic value they place on their merchant shipping fleet (acknowledged by Averin in his Chatham House talk last November) the area is a natural one for them to concentrate on, even though the Besta line may operate at a loss for some time to come.
3. On the draft Economic Cooperation and Maritime agreements with China I understand that, since we spoke, your Division, CREA and Far Eastern Department have agreed that the best course is to try for an insertion into the Economic Cooperation agreement, rather than the Maritime Agreement, of a form of words about moving closer to parity in cargo shipping between the two countries (FCO telegram No. 66 of 19 January to Peking refers).
H
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You
Zy
G G BROWN
CC: FED
HK & GD EESD
CONFIDENTIAL