Mr Gift
Page
CONFIDENTIAL
Reference...
HKK 030/3
RECER
ས་་་་་་
1 AFER
3
ACTION AGAINST SOVIET SHIPPING
ING.
OFFICER
PA
NO | RIMR 19/2. 1.
Your minute of 13 February below: I spoke to Nr Butt in EESD about the possibility of a concerted line on measures against Soviet shipping. He told me that an American proposal in NATO that all member countries should ban Soviet shipping altogether from their ports had been rejected. The Americans have now come back with an alternative suggestion that NATO countries should insist on advance notification of all visits by Soviet vessels. This proposal is still under consideration.
2. In the meantime, the Commission in Brussels have recently completed a study of rate cutting by Soviet shipping around the world. One aspect of this is the impact on Far Eastern traffic that has been made by the so-called "land bridge route", via the Trans-Siberian Railway to Vladivostok: this apparently undercuts normal sea freight routes to the Far East by 25% or more. The position on this is by no means straightforward: while European merchant shipping interests would certainly welcome concerted EEC action to curb the activities of Soviet shippers, there is a very strong exporters' lobby who are opposed to any measures that might reduce the competitiveness of their products in the Far East. Closing, or restricting, the use of, the Trans-Siberian Railway route would make it even more difficult for European manufacturers to sell their products, for example, in the Japanese market.
3.
The Secretary of State was due to write to Mr Nott last week (Mr Butt does not know whether the letter has actually issued yet) to ask if the Department of Trade could undertake a study of the whole problem, including an assessment of the effects of requiring Soviet ships to give prior notification of their intention to call at British ports. The study will also look at the implications of the various possible types of follow-up action that might be undertaken on the ZEC rate cutting report. The DOT study will then serve as guidance for the British delegations in future discussions in both NATO and the EC.
15 February 1980
W. &. Chatill
WE Quantrill
Hong Kong and General Department
CODE 18-77
CONFIDENTIAL
No comments yet.
Private notes are available after approval.