P

CODE 18-77

13

Mr Browning

FEL...

paife

DUSK UT INDEX

6 FEB 1979

PA

Reference

сс

allo в ни

16

MAED.

any

сс Mr Steele

Mr Priston Mr Pryor

Mr Allen FCO Mr Brown

CONOM

CHINA ECONOMIC COOPERATION AGREEMENT

SHIPPING

5

I have just seen Peking telegram 130 of 27 January setting out the Chinese proposed draft agreement. This seems to be very largely a Chinese copy of their agreement with the French. Shipping in particular is mentioned in precisely the same way.

We have considered how far this inclusion meets our requirements and have reached the conclusion that it is not good enough. It is too general in character and too liable to a variety of inter- pretations. It does however provide an excellent peg on which to hang an exchange of letters on the lines proposed in our telegram 66 to Peking. I understand that the Chinese have already said that there could be a subsequent pinpointing of detailed areas of co-operation. It seems to me that we could make an excellent start during your negotiations with shipping.

As you know, we stand ready to supply an expert for your negotiating team.

M S Morris". US/SP DOT.

*

Room 702

Ext 5102

31 January 1979

#

HKK

178/2

30. 51

INDSE

Actio

No

Jorz: CLE

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