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and at a time when the still fairly recent strandings and colli ions in the English Channel and elsewhere have focused attention on systems of certification and supporting standaris it would be difficult for us to contemplate the introduction

of radical changes.

Plne of Convenience

9. If Mr Pao's proposals involve the conversion of the

Hong Kong flag into a flag of convenience, this would involve major difficulti ́s for HMG, for the following reasons:-

(a) The UK is party to the High Seas Convention which provides, inter alia, that a State must effe- ctively exercise its jurisdiction end control in admi- nistrative, technical and social matters over ships

flying its flag. The Colonial Secretary has in the past pointed out to Mr Pao that a Hong Kong Register would not exempt Hong Kong from the requirements to

meet its ob igations under international agreements

entered into by the UK on Hong Kong's behalf. Hong

Kong would be unlikely to be able to ensure the main-

tenance of reasonable standards for ships and crews it empowered to establish a flag of convenience since few

of the ships on her register would call at Hong Kong;

(b) Accentance of flag of convenience registration in Hong Kon; would be difficult to reconcile with the Decisions of the Consultative Shining Group (Western Europe plu: US and Japan) which mot at Ministerial level in Tokyo in 1971: one section of their final

5

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/Decisions

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