May 24, 1997 

Mr. Chang Liang-jen of the Straits Exchange Foundation (SEF) and Mr. Zhao Shiguang of the Hong Kong Shipowners Association reached the following consensus on allowing vessels registered in Taiwan to enter Hong Kong ports and vessels registered in Hong Kong to enter Taiwan ports after July 1 this year: 

1. Vessels registered in Taiwan shall provisionally not fly their flag on the stern mast or mainmast of the vessel between entering and leaving port in Hong Kong. Flags may be flown after a decision is reached through negotiations between the two sides. 
   
   
2. Vessels registered in Hong Kong shall fly the flag of the Hong Kong Special Administrative Region on the stern mast between entering and leaving port in Taiwan; and shall provisionally not fly the flag on the mainmast of the vessel. The flag may be flown after the two sides negotiate an agreement.
   
   
3. Vessels registered on either side of the Taiwan Strait shall fly their company flag and code flag between entering and leaving the other side’s ports. In addition, the two sides shall negotiate and agree on any additions or changes to the flags flown by vessels registered on either side of the Taiwan Strait.
   
   
4. This Summary Record of Negotiations has been approved by the Straits Exchange Foundation and Association for Relations Across the Taiwan Straits and affirmed through the exchange of letters, and officially came into effect on July 1, 1997. 
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5. Four copies of this Summary Record of Negotiations were signed on May 24, 1997, and the two parties will each hold two copies.