COIDENTIAL

Hong Kong & Indian Ocean Department

930 8440

DJ C Jones Esq

Deputy Economic Secretary

ECO KONG

LAST

R

NEK!

REF.

92

Sam

NIKK 21/2

14 July 1972

Jaggan MrTD (Mr. Hawman)

Neww

1.

Please refer to your letter of 9 June (CR4/5061/72) to Michael Laird concerning the difficulties Hong Kong ship owners have incurred in connection with ships registered under flags of convenience. This letter only reached us at the end of June, hence this rather tardy reply.

2. I expect that you will know by now from Ian Price that he raised this matter in Geneva with Harold Lewis, the International Secretary of the ITF, whom he met through George oggon, our FCO Overseas Labour Adviser. Harold Levis will visit Hong Kong

towards the end of this month. Although I relieve this visit was originally concerned with Hong Kong wage rates and other conditions of service for seafarers, you will presumably take that opportunity to discuss this problem with him.

3.

On receipt of your letter we sought the advice of Foggon and the DTI who in their turn raised it with Rice-Oxley, Director of the British Shipping Federation. The latter in particular has close contact with Blyth of the ITF.

We agree, incidentally, that Blyth is, as you s ́, reusonable and responsiblo and he has also been most helpful to us here.

4. The position regarding Hong Kong shipping vis-a-vis the ITF resolution is reasonably clear.

(a)

(b)

A Hong Kong registered ship, ie with British

registration, having a Hong Kong crew and paying appropriate Hong Kong rates, would not be regarded as coming within the derinition of either 'flag of convenience' or 'crew of convenience'.

A Hong Kong owned ship reistered outside Hong Kong

(that is other than in Britain) would be regarded as a 'flag of convenience' ship and would be subject to the restrictions imposed cy the IF Resolution.

CONFIDENTIAL

15.

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