Reference

HKK 21/6

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3

30

Mr Rushford (Legal Adviser)

R

WORLD WIDE (SHIPPING) GROUP REGISTRATION IN HONG KONG

1. Over the past few weeks, correspondence has been exchanged between the Hong Kong Government (Mr Milburn, Director of Marine) and Mr Pao of the World Wide (Shipping) Group with a view to making it possible for some

7,000,000 tons of World Wide shipping to be registered in - Hong Kong.

2. Various difficulties (safety equipment, crew accommodation and radio) have been discussed and it would appear that the only major problem remaining is the question of "officer'manning".

3. In general, Merchant Shipping legislation in Hong Kong is modelled on UK legislation and, in particular, the Hong Kong Merchant Shipping (Aliens Employment) Ordinance in respect of nationality requirements is a parallel of Section 92 of the UK Merchant Shipping Act 1894 as amended by Merchant Shipping Act 1967. Section 2(1) of the Hong Kong legislation provides that "no alien shall act as master, chief officer or chief engineer of a British ship of over sixty tons net register tonnage registered in the Colony" and both Milburn in Hong Kong and the DTI in London have accepted Mr Pao's statement that, because senior British Merchant Officers are in short supply, he cannot invariably meet this requirement.

4. Efforts are being made, therefore, to find a solution to this problem which can be introduced in the near future and replaced as soon as possible by a more permanent arrangement. As a short term expedient the Hong Kong Director of Marine (to whom the Governor's powers are delegated) proposes to use the exemption procedure in Section (2)1 of the Merchant Shipping (Aliens Employment) Ordinance to enable the temporary employment of a non-British Master, Chief Officer or Chief Engineer. If this were done under UK legislation certain procedures would have to be followed. In the circumstance described (ie parallel legislation) must the Director of Marine follow similar procedures or may he, without prior consultation with HMG, adopt his own conditions and procedures?

5. Short of a change in UK legislation (which would reflect in Hong Kong legislation) relating to "officer manning" there would appear to be only two possible long term solutions:-

(a)

for the Colonial legislature to alter the provisions of the Merchant Shipping Act 1894 by invoking the terms of Section 735(1) of that Act so that aliens could be employed on a permanent basis as Masters, Chief Officers or Chief Engineers of Hong Kong registered ships.

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/ or (b)

DD 737719 557664 500M 2/71 GM 3643/2

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