TNAG-0858-FCO40-1068-Proposed-UK-China-bilateral-shipping-agreement-1979 — Page 32

PEKING TL 94

GR 475

CONFIDENTIAL

TELELETTER

FROM

175/548/1

HKK 175

RAMVEA IN BAIRY NO.

1 1 MAY 1979

INDEX

PA

No Miss

Qui

for

51

From Williams Jes

See 23

FOLLOWING FOR

T J B GEORGE, PEKING

8 MAY 1979

MR MORLAND ESQ, MAED, FCO

CC(BY BAY) DR D C WILSON, HONG KONG

YOUR TELELETTER OF 27 APRIL:

SHIPPING

I DISCUSSED THE EXCHANGE OF LETTERS WITH GAO ZHUFENG, THE DEPUTY GENERAL MANAGER OF THE CHINA FOREIGN TRADE TRANSPORTATION CORPORATION ON 4 MAY.

2. AFTER I HAD GONE OVER THE GROUND TO THE EXCHANGE OF LETTERS, AND THE AGREEMENT, GAO RESPONDED BY RECALLING THE GOOD COOPERATION IN THE 1950S AND 1960S AND REGRETTING THAT BRITISH LINER SHIPS NO LONGER CALLED AT CHINA'S PORTS. HE WOULD WELCOME A RESUMPTION OF SUCH REGUALR CALLIS IF A SUITABLE BASIS COULD BE FOUND. QUESTIONS NEEDING DISCUSSION WERE FREIGHT RATES AND THE ALLOCATION OF CARGO. HE INSTANCED AS A PROBLEM INADEQUATE BERTHING FACILITIES WHICH WERE THE CAUSE OF LONG DELAYS IN CHINESE PORTS. (PORTS COME UNDER THE MINISTRY OF COMMUNICATIONS.)

3. GAO EXPLAINED THAT HIS CORPORATION WAS RESPONSIBLE FOR ALLOCATING SHIPPING SPACE FOR ALL CHINA'S (CIF) EXPORTS AND (FOB) IMPORTS. THEY GAVE PRIORITY TO THE NATIONAL FLEET (WHICH IT WAS NATIONAL POLICY TO BUILD UP), BUT MADE ALLOCATIONS TO FOREIGN LINERS CALLING REGULARLY SEMI COLON AND THEY CHARTERED VESSELS AS NECESSARY. IF BRITISH LINER COMPANIES WERE INTERESTED IN OPENING UP SERVICES THE CHINESE WERE READY FOR DISCUSSIONS. ON CHARTERS, GAO SAID THAT THE CHINESE HAD EXCELLENT COOPERATION WITH LONDON SHIPPING BROKERS ALTHOUGH FOR REASONO F COST, THIS DID NOT ALWAYS LEAD TO THE CHARTERING OF BRITISH VESSELS.

*

L