TNAG-0858-FCO40-1068-Proposed-UK-China-bilateral-shipping-agreement-1979 — Page 13

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Mr Morris

SP

IND

HKK 175 pence

AVID IN RE SYRU

DEX

- 4 JUL 1979

Mr Brown SP3C

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CHINA

man

I discussed the question of the Maritime Agreement with China in the course of my talks at Government House in Hong Kong with the Economic Services Department of the Government Secretariat. In fact no UK-based member of the Secreturiat proved to be available. My discussions were thus with Mr Wong and Mr Lo, both locally- employed officers. But I found Mr Wong ( who is, I gather, a of substantial means for whom Government service is something of an intellectual outlet) to be well-informed on both the shipping and civil aviation fronts. He has been closely involved with George Rogers working on the Air Services Agreement with China.

2* Interestingly enough, Mr Wong indicated that, in the Air Services context, it was the UK which was pressing for Hong Kong's inclusion as an integral part of the UK-China Agreement.

His preference, on behalf of Hong Kong, was for twɔ Agreements: one would cover direct services between the UK and China, the other would be a "regional understanding" covering the development of air services between Hong Kong and points in China. The advant- age of this latter arrangement would be that it would allow a flexible response to the local situation, through discussions which the Hong Kong authorities could probably undertake them- selves, without the need to involve constant readjustment to the more formal Air Services Agrcement. But Mr Wong had been unable to persuade Mr Rogers to abandon his preference for the inclusion of Hong Kong as a point covered by the overall ASA.

3 I asked Wong whether his position vis-1-vis Air Services implied that he would have no objection to a metropolitan UK- China Maritime Agreement accompanied by some form of separate understanding on Hong Kong. I recalled that Hong Kong's prefer- ence, as expressed hitherto, had been for formal inclusion of the Colony within a UK-China Maritime Agreement. Wong confirmed that he would have no objection to a sepirate understanding provided it included the minimum safeguards set out in his telegram to FCO of 21 March. These were that:

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i)

11)

iii)

Hong Kong-registered ships would in practice be accorded treatment similar to this given to other British ships (ie dues etc),

the validity of certificates of repair and survey issued in Hong Kong would be recoised and would not prejudice the "metropolitan” "character of the ship;

Hong Kong seamen would be no worse off than now and if possible, would enjoy an

improved position.

Wong asked me about UMF's current analysis of the need for a Maritime Agreement with China. I reneurbed our arguments and pointed to the position of other ajor western countries (including, prospectively, the (3) The benefits could be both

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