WORKING PAPER ON SHIPPING

THE CHINESE PLAN

SECRET

There

Current social and economic systems would remain unchanged. would be financial independence. The Hong Kong Special Administrative Region would remain a free port. In retaining its status as a free port, existing economic and trading systems and

methods of management would remain unchanged. The SAR would have

the power to enter into its own negotiations with foreign parties on

matters relating to economy, culture and tourism and to sign relevant bilateral or multilateral agreements. The SAR could on its

own participate in international organisations and conferences not limited to states. The People's Republic of China and the Hong Kong SAR of The People's Republic of China would conduct their external

trade separately and independently of each other. The Hong Kong SAR's trade relations with the mainland of China would continue as

at present.

IMPLICATIONS

Hong Kong shipowners and charterers, their managers and agents would remain free under Hong Kong law to operate ships worldwide for the carriage of goods and passengers to and from all other ports, and to participate in the management of freight conferences. Private businesses would continue to provide maritime services such as stevedoring, forwarding, insurance (including protection and indemnity club entry) and legal services. Internationally recognised classification societies would continue to be recognised and operated under Hong Kong law for the purpose of ship surveys.

2.

The Hong Kong administration would continue to provide port facilities for landing or loading passengers, cargo, livestock, the landing and marketing of fish, pleasure craft, shelter from typhoons and for the supply by private businesses of stores and bunkers and salvage, pilotage, towage and repair services.

3. Ships would continue to enjoy access to ports of Hong Kong in the course of trade or navigation in accordance with the law.

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