TNAG-1314-FCO40-1696-Working-papers-for-use-at-talks-on-the-future-of-Hong-Kong-1984 — Page 108

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SECRET AND PERSONAL

Shipping Policy Directorate

Department of Transport

Room P2/070

2 Marsham Street London SW1P 3EB

Telex 22221

Direct Line

Switchboard

GTN 212

01-212 8494

01-212 3434

(27)

CO Hum Esq

FCO

London SW1

Tel. set (- (H/ Pelig

Hong Kong Department

overing Awalt. Alt lesions with r

lascisms

Heves I doubt to time on

collège

cra 25%

Dear Hun

مى

24 January 1984

HK Koge!!

коде

RECEIVED IN NEGISTRY

FICER

71784

REGISTRY

Action Taken:

ध

You sent me a copy of your letter of 19 January to Zak Douek about 31/1 Hong Kong shipping after 1997.

I do not think anything needs to be added to the paper to cover liner conferences. Liner conferences are commercial agreements between shipping lines. The provision at the start of the working paper that current economic systems would remain unchanged would I think mean therefore that those conferences could continue to operate. There is a United Nations convention on a code of conduct for liner conferences; this does not yet apply to Hong Kong but by 1997 may well do so. That application would I think be covered by the third sentence in paragraph 6 of the draft note.

Cabotage by which I mean the carriage of coastal traffic between ports in the same state is an interesting question. Many states exclude foreign-flagged vessels from such trades. I understand that ships ply fairly freely between Hong Kong and mainland China, but I don't know whether many or any of them are registered in neither place. Without this knowledge, and I don't want to make enquiries, I find it difficult to suggest an addition to the draft. My personal view is that if coastal trade is at present, if only de facto, limited to Chinese ships we could not object to formal limitation after 1997; and that even if it is not we might well not want to.

I presume that the ability of HMG in times of emergency or war to requisition vessels on the Hong Kong register would come to an end after 1997, and that this is a point we should not want to raise.

Youre sincerely

John Hende

J D HENES

SECRET AND PERSONAL