RECEN

(ET MON)

PRIME MINISTER 12 JUN 1972

REC

NRK 21/2

CONFIDENTIAL

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primaris one for the ATE

HK 10 Sept

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n-Wilford ref. dept дерн

Dear Patrick

27

10 Downing Street ).send off.

NK

Whitehall 2lettes foDTI

DIT TO HK 7 June 1972 Z

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816

in Goodfetta

Endo

14.51

Mr. Y.K. Pao, about whom you wrote to me on 22 May, called on the Prime Minister this afternoon.

The possibility that Mr. Pao might register some of his fleet under à Hong Kong flag came up in the course of the discussion. Mr. Pao agreed that the question of specifications of materials and equipment required for British ships was less of a problem than officer manning. He felt that some solution might be sought by which the standards of officers under a Hong Kong registration scheme could meet the more stringent level required for British registration, without insistence on the need for senior officers to be of British nationality.

The Prime Minister told Mr. Pao that he would have this idea examined since he saw some merit in it, as the transfer of a substantial number of ships to a Hong Kong registry would bring economic benefits to the colony. Mr. Heath would be grateful if the possibility could be properly considered, and a report made to him in due course.

I am sending a copy of this letter to Farrow (Department of Trade and Industry).

LAST

Hexi

Bet.

P. H. Grattan Esq.,

26

Foreign and Commonwealth Office.

your ever

Tom Bridges

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