SECRET
31
6. WE HAVE NOT INCLUDED A PARAGRAPH ON CABOTAGE ROUTES (PARA 2 OF YOUR TELNO. 133) ALTHOUGH THERE IS REFERENCE TO THIS IN PARA 1. THERE IS NO LEGAL BAR TO TRADE BY NON CHINESE VESSELS ON ROUTES BETWEEN HONG KONG AND PORTS IN MAINLAND CHINA. HOWEVER THE CHINESE HAVE ALL BUT EXTINGUISHED COMPETITION ON THESE ROUTES BY UNDERCUTTING THE RATES AT WHICH HONG KONG COMPANIES ARE PREPARED TO OPERATE, AND ENSURING CONTROL OF EXPORT CARGOES BY GOVERNMENT AGENCIES IN SUPPORT OF THEIR SHIPS, BOTH OWNED AND CHARTERED. SOME HONG KONG SHIPPING COMPANIES ARE OF COURSE UNDER COMMUNIST
CONTROL.
YOUDE
FUTURE OF HONG KONG LIMITED
PLANNING STAFF
ED/PUSD
D/E/PUSD (HR FLOWER)
RES.B. (R WALKER)
LEGAL ADVISER (SIR IAN SINCLAIR
PS
PS/LADY YOUNG
PS/LR LUCE
COPIES TO:
BUCKINGHAM PALACE
PS/LORD PRESIDENT OF THE COUNCIL
PS/HOME SECRETARY
PS/CHANCELLOR OF THE EXCHEQUER
PS/LORD PRIVY SEAL
PS/SECRETARY FOR TRADE & INDUSTRY
COPIES TO: (VIA ADR)
MR ROBERTS EWS D
MR BURROWS LEGAL ADVS
MR COLES NO 10 DOWNING ST
MR MARTIN ASSESSMENT STAFF CABINET OFFICE
MR GOODALI
CABINET OFFICE
MR BRENNAN CABINET OFFICE PS/S OF S FOR DEFENCE D DS/ATTORNEY GENERAL
PS/PUS
SIR J BULLARD
SIR W HARDING
R DONALD
WR PRIGET
SIR C TICHELL
3
SECRET
SIR P CRADOCK NO 10 DOWNING STREET
SIR P CRADOCK RM K195