Reference.

26

Mr Clewley

WORLD-WIDE SHIPPING COMPANY

Mr Kitson telephoned this morning and I passed on to him what Mr Royle said to us yesterday.

1.

2.

Mr Kitson said that he would have to write to Mr Lee and that he would in particular be asking what advantages, financial or otherwise, there would be for the United Kingdom or Hong Kong if Mr Pao were to transfer his ships to the Hong Kong registry. He would also say that we were looking further into the possibilities of meeting Mr Pao's requirements by use of the powers of exemption in respect of manning already available under Hong Kong law and that we would look forward to seeing Mr Pao again in September (when he will be back in the UK) Mr Kitson suggested that we could give Mr Pao in September the results of our discussion of this problem with the DTI but I said that I hoped Mr Pao would have discussions in Hong Kong before then.

3. Mr Kitson said that he would send us a copy of the reply he had from Mr Lee about the benefits to the UK or Hong Kong of the arrangements proposed by Mr Pao, and he asked that we in turn would keep him in touch with developments with the DTI and the Hong Kong authorities.

25 June 1971

En.

E O Laird

Hong Kong Department

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

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