Shipping representatives from Hong Kong and Taiwan will meet in the territory on May 2 to discuss bilateral shipping arrangements after the handover. As Hong Kong and Taiwan have agreed in principle that ships registered in their names will fly no flag when entering each other's territorial waters after June 30, both are likely to reach agreement during their one-day talks. The Hong Kong Shipowners' Association, authorised this year by Beijing to represent Hong Kong in the talks, plans to issue a statement after the meeting. Taiwan's Transport Minister Tsay Jaw-yang said yesterday that related laws could be amended in time if both sides reached agreement. George Chao, the association's chairman, and Lee Ching-ping, a deputy secretary-general of Taiwan's Straits Exchange Foundation, which represents the Government in dealings with China, yesterday announced the venue and date for the talks. While Taiwan had originally insisted on holding the negotiations in Taipei, the venue was switched to Hong Kong at Mr Chao's request, Mr Lee said. 'Choosing to hold the talks in Hong Kong shows that both sides share mutual understanding and flexibility,' he said. The five-member Hong Kong team will be led by Mr Chao while the Taiwanese delegation will be headed by Chang Liang-jen, a foundation deputy secretary-general. Hsieh Ming-huei, navigation department chief at Taiwan's Transport Ministry, will be an adviser for the Taiwanese team. Taipei objected to Hong Kong ships visiting Taiwan and hoisting the Chinese flag after the handover, while Beijing objected to Taiwanese ships flying the Republic of China flag when entering Hong Kong.