TNAG-0858-FCO40-1068-Proposed-UK-China-bilateral-shipping-agreement-1979 — Page 87

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-

RÆCEIVED IN REGISTRY,

25MMAR

Marefield, FED!

Mr Quandfill, HKC.D

CL

Shipping Relations-with China.

ten

MRS 091/301/1

2711AN 972

Note of a meeting at 1

a Victoria

toria St bn 22 March 1979.

Live

Present: Mr M Morris SP(Chairman) Mr D Ropner GCBS

Mr JCS Priston CRE4

Mr M Morland

Mr D Wyatt

Mr RBC Farthing GCBS

FCO/MAED

Mr H Karsten

GCBS

FCO/MAED

Mr A Pryor

SP3

Mr J Grattan Mr I Gunn

GCBS

GCBS

Mr RJ Brown

SP3C

Mrs S M Gill

SP3C

65

دلی

1.

The meeting was called to bring GCBS up to date on shipping relations with China in the light of Mr Priston's visit with SoS (Industry).

2. Mr Priston gave a resume of his shipping negotiations with the Chinese and explained the difficulties he had encountered in trying to initiate discussions on a possible Exchange of Letter on cargo sharing. While neither of the three Ministries concerned had shown any particular interest, it had been left that the

On Ministry of Communications would, at least, study our text. the other hand the Chinese themselves had raised the question of reopening talks on a Maritime Agreement and it had been agreed that the British Embassy would follow this up with the Chinese in the near future. Mr Friston confirmed that shipping wes embodied in the Economic Cooperation Agreement in general terms and, although the Chinese had refused to negotiate cargo sharing, we were no further behind in this respect than, eg, the French or Germans. If the Chinese were to make further concessions, we might have to offer something in exchange eg we might intimate that the Maritime Agreement was dependent on our securing reason- able access on remunerative terms.

3.Mr Morris added that we were already in touch with our Embassy in Peking on how to proceed. In addition, the Governor of Hong Kong would shortly be visiting China. We might subsequently be cleare on Hong Kong issues in relation to the Maritime Agreement.

4. The GCBS reported that a number of British Shipowners would b interested in China if rates were reasonable: if the price were right an arrangement on shares could be reached; information on the shipping services available from British companies would be forwarded shortly. GCBS felt that it was essential to press on quickly for an Understanding on access to cargo on reasonable terms and for a Maritime Agreement in tandem: now was the right psycological moment as trade, currently at 100,000 tons, was expected to double next year. If an exchange of letters proved impossible, the GCBS felt that we should still go for the Maritim Agreement: other EEC countries had it and we should not be left out.

It was confirmed that our share of the cross trades was of importance to British tramp owners.