5.
3
In view of the changes in the Chinese Government and policies since 1977 we do not know whether the Chinese still object to the inclus- ion of Hong Kong vessels and crews in the Maritime Agreement. If they do we might consider going for a Metropolitan-only Agreement (as with the Economic Cooperation Agreement) but no decision has been reached on this. If asked you may tell the Chinese that we ar ready to resume discussions on a Maritime Agreement which would be complementary to an understanding on equitable access to the bilat- eral trade, as soon as possible. Since it is now two years since. negotiations were broken off the first step would probably best be for the Embassy in Peking to hold a preliminary round of talks with the Chinese to get discussions going again. The Embassy would rec- apitulate where things have got to and would try to identify what the main issues and points of difference now are. The Governor of Hong Kong's visit to Peking in the last week of March may provide some new indication of the present Chinese attitude to Hong Kong which we could turn to our advantage and there would thus be advant age in the talks being held after the Governor's visit. the reasons set out in paragraph 6 below it is vital that we should take advantage of what may be a unique opportunity to secure an understanding on the economic aspects of shipping in the Economic Cooperation Agreement.
The Economic Cooperation Agreement
However fol
The draft of the Maritime Agreement which we put to the Chinese in 1977 contained a provision for a continuing dialogue on the econom aspects of shipping which followed the French and German wording. Subsequent discussions with the General Council of British Shippin
together with our experience of how difficult it has been to secur an understanding with the USSR which recognises our shipowners' rights to a reasonable share of our bilateral trade has led us to conclude that the wording in our previous draft falls short in recording each party's clear agreement to the substantial involve- ment of shipoperators on both sides on commercially viable terms.
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