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would in theory be possible for Hong Kong significantly to
reduce her standards to those of "flag of convenience"
countries, whilst still complying with SOLAS. We are con-
cerned that standards set by the Merchant Shipping Acts
for British ships should not be lowered as a matter of
(Hong Kong) expediency. The Colonial Secretary has said that a Hong
Kong register would not absolve Hong Kong from the obli-
gation to maintain standards.
5. There are two requirements for the registration of
British ships which have particularly worried Mr Pao. The
first and less difficult is the detailed specifications of
certain materials and equipment required by British vessels.
Most of Pao's vessels are built in Japan and he has claimed
that meeting British standard specifications can cause incon-
venience and delay in construction. It has been pointed out
to him, however, that Japanese yards do readily meet British
requirements in these respects when called upon to do so and
it would appear that he is now satisfied on this point.
6. The more difficult problem is that of officer manning.
In this respect Hong Kong Law follows British Law, which
applies to all British ships registered throughout the Com-
monwealth. The requirement is that the Master, 1st Mate,
2nd Mat, Chief Engineer, 2nd Engineer and Radio Officer should
be British qualified ie qualified by examination at examination
centres approved by the UK Government (in the UK or Commonwealth).
And the rules lay down that candidates for most of these exa-
minations must be British subjects.
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/7.
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