TNAG-0858-FCO40-1068-Proposed-UK-China-bilateral-shipping-agreement-1979 — Page 71

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The only notable exception apart from the UK is the USA and it has recently been reported that preliminary moves towards a US/China Maritime Agreement are under way. A UK/China Maritime Agreement would serve to put us on an equal footing with our competitors.

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Psychologically, the conclusion at this stage of our Maritime Agreement with China (which has after all been under negotiation since 1976) would indicate our mutual commitment to the development of shipping services in parallel with the development of trade between the UK and China. It is generally assumed that China's trade will expand very considerably over the next few years forecast for UK/China trade for example is that it will double next

the year bringing with it greater opportunities for British shipping. Our firm impression is that the Chinese are anxious to conclude a Maritime Agreement with the UK: take advantage of this.

it would seem imprudent not to

If

6 Our immediate objective is to secure an understanding on reasonable participation in the direct trades in the form of un exchange of letters under the Economic Co-operation Agreement. this can be achieved, we will wish to be in a position to capitalise on it through the early conclusion of the Maritime Agreement which will give us an assurance of favourable treatment for our vessels engaged in the China trade whether in the direct trodes or as cross- traders. he should y 11 that UK shipping as going through some-- thing of a loan period small at the outset, would be welcome to our shipowners.

any now market, even if comparatively

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Hong Kong Telegram 406 gave a useful insight into how, in the Governor's view, Hong Kong interests would be affected by a Haritime Agreement which excluded Hong Kong. We have no supplementary cuestions to ask of Hong Kong for the moment, but we are looking forward to receiving Feking's reply to Allan Ramsay's Tele-letter of 15 March.

ولس محلات

Jocker

A J Fryor

cc Mr McLaren, HK&GD, TOO

Mr Samuel, FED, FOC

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