TNAG-0742-FCO40-946-Relations-between-China-and-Hong-Kong-1978 — Page 131

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

Continuation Sheet

CONFIDENT IAL

7 August 1978

6

7

8

(b)

(c)

could be political implications to the creation of formally-endorsed "second class citizenship" for Hong Kong carriers.

Treatment of Crew

UK seamen (ie bearers of British identity documents) on Hong Kong-registered vessels would be denied the benefits of the Agreement, as would Hong Kong seamen (bearers of Hong Kong identity documents) on Hong Kong or UK- registered ships.

General Aspects: Certificates issued or renewed in Hong Kong (eg tonnage certificates, Radio Officer's certificates etc) would not be recognised by China even in respect of UK-registered vessels).

Our initial objective in reopened negotiations should certainly be to induce the Chinese to bring Hong Kong within the scope of the Agreement. Possibly the passage of time may have made them a little more aware of the difficulties which would arise from Hong Kong's exclusion. But our own assessment - on which we should welcome your views

is that this is something of a forlorn hope.

-

Following further discussions with British shipowners, we do not feel that failure on the question of Hong Kong's formal inclusion within the terms of the Agreement should lead automatically to the abandon- ment of the search for an agreement. Our current feeling is that, under these circumstances, we should press on towards an Agreement formally limited in scope to metropolitan UK (but including, if appropriate, UK-flag vessels from other dependent territories and Commonwealth countries): and that we should seek to protect the interests of Hong Kong-registered vessels and Hong Kong seamen by asking for an assurance (outside the framework of the Agreement but if possible in written form - Memorandum of Understanding, Exchange of Notes, etc) to the effect that they would in practice enjoy parit of treatment or. at worst, no worsening of the status quo. In the last analysis, I would not exclude the possibility that we might wis to consider proceeding toan Agreement limited to metropolitan UK, even in the absence of specific assurances regarding Hong Kong.

At this point I turn to you for an indication of FCO views. To wha extent would the FCO wish to make it a sine qua non of concluding an Agreement that some sort of assurance about the treatment of Hong Ko could be obtained? And what is your assessment of the political dangers of creating the "second class citizenship" referred to under (a) in para 5 above? We should also welcome an assessment from

CONFIDENT IA L

/ Hong

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