TNAG-0858-FCO40-1068-Proposed-UK-China-bilateral-shipping-agreement-1979 — Page 17

CODE 18-77

Mr Ramsay MAED G67A/1

CONFIDENTIAL

Reference

FEC 175/1 HKK 175/2 IT

1979

NO.

57

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}

UK-CHINA MARITIME AGREEMENT

1.

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82...

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Your minute of 1 June: FED agree that Mr George should follow up with the MFA the suggestions which he made in his teleletter of 15 May and that he should be given the discretion to choose the moment for doing this. The air services agreement negotiations are proving particularly sticky at the moment and it would be wrong to unnecessarily complicate things for Peking. In addition the resources of the post will be fully stretched for the next two weeks in coping with the Energy Exhibition (350 UK companies participating)

2. We would however not wish the draft teleletter to go as it stands. The DOT have not thought it through very carefully. Firstly - in paragraph 2 the suggestion that we should not let the Chinese take the initiative on a "best words" formula sits somewhat incongruously alongside the reference to telno 272 in which the DOT reported that they had told the Chinese to take the initiative. Secondly paragraph 3 is most inaccurate. It omits some of the arguments in Hong Kong teleno 406(copy attached)eg on loss of confidence and puts in others which are not there (items B and C). Is item B a point which we would want to make to the Chinese in this form anyway? If as I under.. stand it Hong Kong certificates for repair, survey etc are. available to ships of all nationalities (including Chinese vessels: then we might take the opportunity to strengthen the argument at D.

3. Finally, the way in which the DOT refer to the cargo sharing issue in para 4 rather implies that the ball is in the Chinese court. In fact we are waiting for the GCBS to respond to the opening which Mr George reported in his teleletter of 8 May Early comment on this was promised in telno 272. It would help Peking to pursue this in parallel to the” Maritime Agreement (and give us a measure of British shipowners enthusiasm) if the teleletter could give the GCBS response.

4. I attach an outline revised draft teleletter.

4 June 1979

cc: Mr Quantrill HKGD

C C Hayward

Far Eastern Department