Mr Forrester

WORLD WIDE (SHIPPING GROUP

1.

REGISTRATION IN HONG KONG

Mr Royle has asked for a note on the question of the

registration of Mr Pao's ships in Hong Kong. We have now been

into this question in detail with the Department of Trade and

Industry (DTI) and our legal advisers, and our conclusions

are summarised in the following paragraphs of this submission.

2. It seems to us that the main stumbling-block in Mr Pao's

view is what he has described as the rigid nationality

requirement of officers and engineers serving in senior posts

and the certification requirements. There is indeed a

shortage of qualified seafaring officers and so far as the UK

is concerned the DTI are at present engaged on the urgent task

of reviewing current arrangements in relation to certification,

manning and the training of ships' officers in the hope of

laying the foundations for a more stable situation in the long

term. They will be discussing this shortly with both sides of

the shipping industry in the United Kingdom. In the course of

such discussions they will be considering, among other things,

the extent to which the present requirements as to the

nationality of persons holding senior positions such as Master

and Chief Engineer may need to be relaxed. This is a difficult

and sensitive issue. The DTI feel that some flexibility as

regards nationality will be necessary - in any case they would

have to look carefully at this in connection with our possible

entry into the Common Market - but that they may well run into

strong resistance from representatives of the seafarers'

organisations. In brief, they believe that some relaxation of

the UK's present nationality rules in this context is probable

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