CONFIDENTIAL
5
11.
The Fund Convention encourages prevention of oil
pollution by providing incentives for shipowners to comply
with international safety standards.
compensation
limits of the Fund
The higher maximum
Convention over the
Liability Convention also
allows the port of Hong Kong a
higher
limit
to
recover
from the
Fund
the
costs
of
preventive and clean-up action and consequential damage in
the
of event
oil an
escape
in
conversion
difficulties,
By removing Hong Kong.
the 1976 Protocol improves on the
operation of the Fund Convention.
Proposal
12.
The British side proposes that the Fund Convention
and the 1976 Protocol should continue to apply to the Hong
Kong SAR after 30 June 1997 in accordance with the Joint
Declaration. The PRC is not a party to the Fund Convention
Protocol thereto. It will be necessary for the CPG
Parties and all Contracting present
or
to
the
indicate to all
Governments which may become parties before 1 July 1997,
that all the international rights and obligations arising
from the Convention and Protocol, to the extent that they apply to Hong Kong, will be assumed by the CPG with effect from 1 July 1997 and apply to the HKSAR of the PRC.
will
further
It
be
CONFIDENTIAL
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