CONFIDENTIAL
most of the senior members of British-registered ships are
therefore British. Mr. Pao maintains that this forces him to
register under flags of convenience.
Attempts are now being
made by IMCO and ILO to develop internationally-accepted
standards for officers but a solution is not yet in sight. This
may in the long run enable us to relax the rules about officer
manning on British-registered ships but this is not likely in the
immediate future. If a Hong Kong registration is set up a
different nationality requirement could be adopted. This would
require confirmation by an Order in Council. This, therefore, is
one of the points which would have to be considered carefully in
the context of setting up a separate Hong Kong register.
4.
Mr. Pao might make a more radical proposal that there could
be a Hong Kong flag of convenience. The Prime Minister should
say that we oppose this. We are seriously concerned to see high
standards in relation to safety equipment and accommodation
maintained. If Hong Kong were to become a flag of convenience,
there would be no control over the standards on Hong Kong
registered ships, many of which would never come to Hong Kong.
A decision to set up a flag of convenience in Hong Kong would
be contrary to the position taken by Britain in the international
organisations concerned with shipping. In addition the existing
tax situation flags of convenience create an inequitable system for ship
owners of different nationalities.
It would be inappropriate
for Hong Kong
to become
a
flag of
ཚགས་ ་པ་འཚེ་ཨཅ་ཆ་ ང་
CONFIDENTIAL