COVERING SECRET

IME MINISTER'S MEETING WITH SIR Y K PAO : 10.30 AM ON FRIDAY, 17 JULY 1981

POINTS TO MAKE

FUTURE OF HONG KONG

1. Read your speech with interest.

Share your belief in continued

prosperity of Hong Kong. Important to maintain confidence.

UNCTAD COMMITTEE ON SHIPPING (Defensive)

20

Outcome of recent Special Session disappointing but not

Remains to be seen what will become of Group of 77's

unexpected.

proposals.

SEPARATE HONG KONG REGISTER

3.

Separate Hong Kong register not in our or Hong Kong's

interest. Would only draw further unjustified accusations from

UNCTAD that Hong Kong is itself a 'flag of convenience'.

SHIPBUILDING

4. Recent order for DS14s most welcome. Hope it will be

first of many.

5. (If asked) In principle, Her Majesty's Government is prepared

to make Intervention Fund grants available to help yards quote

more competitively.

BULK MARKET

6.

Share concern at depression in bulk market.

Grateful for

views on future developments.

COVERING SECRET

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