TNAG-0858-FCO40-1068-Proposed-UK-China-bilateral-shipping-agreement-1979 — Page 77

CONFIDENTIAL

38

38

Mr Morland

MAID

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PROPOSED UK/CHINA MARITIME AGREEMENT:

1.

ARE 175/2

INDEX

по

- 3 APR 1979

12.4

THE HONG KONG INTEREST

Thank you for letting me see your proposed draft letter to Mr Fryor in the DOT (your minute of 30 arch). Subject to one comment, I agree with it.

2. You say that it is difficult to answer the first question posed in paragraph 8 of vir Pryor's letter 217 August 1978 to Mr Samuel. I am not so sure. Jurely we would wish to make it a sine qua non. of concluding an agreement that some sort of assurance about the treatment of Hong Kong is obtained? 1 suggest that the penultimate sentence of your draft be amended on the following lines:

"The FCC recommendation to Ministers would depend largely

on our judgement of the weight to be given, respectively, to the disadvantages to ilong Kong of a metropolitan-only agreement and the damage done to British shipping interesta of getting no agreement at all(the latter must depend on the assessment mentioued at the outset of his letter). «e should also need to assess carefully the value of whatever assurances the Chinese were prepared to give regarding the treatment of Hong Kong outside the agreement: 1 doubt very much whether we should recommend going ahead in the absence of any assurances at all".

2 -pril 1979

Copy to: Ar Lamuel, FLD

CONFERENTIAL

RJT McLaren

Hong Kong and General Department