(iii)

For HMG only disadvantage is

likely to accrue. A Hong Kong

registry independent of Britain

will reduce employment opportunities

for British seafarers. It is

also bound to undermine HMG's

efforts to improve the standard

of watch-keeping officers.

Furthermore, a recent Act of

Parliament (the Merchant Shipping

Act 1967) was brought into being

specifically to ensure that ships

registered in the UK carry British

certificated officers when going to

sea from any port. Against this

background it would seem wrong for

Hong Kong, as a territory

inextricably linked with Britain

whilst it remains non-Chinese, to

adopt conditions for ships at

variance with UK practice to the

point of creating another flag of

convenience.

(a)

The DTI are at present engaged on an

exercise which, although it may take two

+

years to complete, will produce conditions

(by means of Regulations under the

Merchant Shipping Act, 1970) designed to

improve training and to increase the

number of certificated officers available

for employment and will, to this extent,

ease Mr Pao's officer manning problem.

/From

F

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