CONFIDENTIAL

As further Merchant Shipping Acts are introduced or amendments

made in the UK such acts or amendments will be reenacted in

similar terms in Hong Kong if it is intended that they should

have application there.

5. At the same time the Hong Kong Government proposes that

the Merchant Shipping Ordinance, which was last revised in

1950, should be repealed and replaced. It is proposed that

the various provisions relating to port matters, manning and

international shipping should be dealt with separately and be

reenacted in 3 distinct parts. The intention is to

consolidate all merchant shipping laws in operation in the

Colony in one cohesive body, including both the UK Acts and

the Hong Kong Ordinance. Consolidation of these laws is a

large undertaking which, according to the Hong Kong Government,

may take between 3 to 5 years to complete.

RECOMMENDATION

6. This is a complex matter and it is clear that no long

term solution can be arrived at quickly. I recommend that

when Mr. Royle sees Mr Pao again at the end of this week he

should press him to follow the helpful suggestions made by

the Director of Marine in his letter of 5 May. There can be

no doubt that the Hong Kong Government in general and the

Director of Marine in particular are very ready to meet Mr

Pao's requirements in any way they can. I also recommend

that we should pursue the legal and other implications of the

introduction of a nationality requirement in connection with

the manning of ships registered in Hong Kong differing from

that applied to UK registered ships, whatever policy may emerge

5.

CONFIDENTIAL

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