CONFIDENTIAL

Conclusion

12. The Prime Minister will wish to listen to Mr Pao's

views. He may wish to ask him to spell out in detail the

benefits of setting up a separate shipping Register in

Hong Kong and his views on the nationality and safety

requirements that he has in mind and say that HMG will give

the matter further consideration.

13. He may, however, wish to emphasise HMG's concern to

preserve the existing high standards in relation to safety,

equipment and accommodation for British registered ships,

and discourage any suggestion that a flag of convenience

might be established in Hong Kong.

Hong Kong and Indian Ocean Dept

18 May 1972

7

CONFIDENTIAL

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