TNAG-2531-FCO40-3701-Hong-Kong-shipping-matters-1997 — Page 4

CONFIDENTIAL

XCC(92)76

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In view of the benefits for Hong Kong and as the practical implications and enforcement requirements are not unduly onerous, it is recommended that Hong Kong should seek the extension of Annex III to the territory. Subject to Members' approval and consultation with the Chinese, traders will be notified in advance of our intention to extend the Annex to Hong Kong, and to introduce legislation to give it legal effect in due course.

Consultation with the Chinese

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The Chinese side agreed at JLG V on 26 November 1986 that those maritime conventions adopted by the IMO and other related international maritime agreements which were applicable to Hong Kong and which had been signed by the PRC would automatically continue to apply to Hong Kong. As for those which had not been signed by the PRC, the Chinese Government would in principle adopt measures to allow them to continue to apply to Hong Kong if there is such a need. Since the PRC has not yet elected to be bound by Annex III to the Convention and the proposed extension of Annex III to Hong Kong would create new international rights and obligations for Hong Kong which are intended to continue to apply after 1997, prior consultation with the Chinese would be required under the Agreed Guidelines.

FINANCIAL AND STAFFING IMPLICATIONS

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The Marine Department is already carrying out inspections of ships in accordance with international agreements to ensure ship safety. These inspections would need to be extended to the inspection of ships carrying harmful substances. Minor costs will be incurred in training existing surveyors to enforce the requirements. These costs will be absorbed within existing resources.

PUBLIC CONSULTATION

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The Dangerous Goods Standing Committee, which comprises representatives of the Federation of Hong Kong Industries, shipping interests, godown operators, the oil industries, traders of chemicals and relevant Government departments, has been consulted and agrees with the implementation of Annex III in Hong Kong.