CONFIDENTIAL
༢ :
Brief No ?
in the world, has 22 vessels on order comprising over 1.25 million grt at a cost of more than $400 million.
7
Hong Kong is a clear beneficiary from FOC since its residents, according to an UNCTAD study, beneficially own 16.9% of total FCC tonnage. Hong Kong shipowners are therefore opposed to UNCTAD proposals to phase out FOC. Hong Kong is also ad idem with the UK in opposing the idea of a bilateral cargo sharing regime in the bulk trades, since Hong Kong generates and consumes very little in the way of bulk cargoes whilst vessels beneficially owned in Hong Kong are substantial cross-traders in the bulk sector. An UNCTAD meet- ing to consider possible action against FOC is being held in Geneva on
14-22 January.
8 In 1977 our negotiations with China for a bilateral Maritime Agreement were broken off because of Chinese insistence that Hong Kong should not be covered. With the thaw in China's general policies and the prospect of
increased trade, we have indicated readiness to resume negotiations although
the timing is likely to depend on the Chinese response to proposals of our
including an understanding on equitable access to cargoes in the direct trades. (This last point is confidential). We are well aware of Hong Kong
own,
concerns and will continue to press for her inclusion.
9
At present, all vessels registered in Hong Kong fly the British flag.
The question of a separate Hong Kong register has been dormant for some
time but there may be
Kong concerns are not The reasons behind the
although a factor was
newed pressure as a result of UNCTAD V or if Hong ut in relation to the UK/China Maritime Agreement.
demand for a separate registry were never entirely clear,
the difficulty in recruiting British officers required
for the British flag. As a dependent territory, Hong Kong is not entitled to
a separate flag but we would be prepared to look at any particular difficulties
to which registry under the British flag gives rise.
10
As Hong Kong's international maritime presence grows there has been
increasing direct-contact with her industry by this Department as well as
through the Hong Kong Government. Senior officials met shipowner representa-
tives both before and after last year's UNCTAD V in Manila and officials here
CONFIDENTIAL