Leikstra MAAR
CONFIDENTIAT
JN
باوره.
Decisions was criticel of flags of convenience:
(c) Flago of convenience ar being extensively cri--
ticised in international organisations, notably in
OECD. This criticism is based lawrely on assumptiono
about low safety standards and working conditions.
+
We should like further studies to be carried out ob-
jectively; our influence world, however, be diminished
if a flag of conveniendo were established in Hong Kong:
(a) HMG's opposition so flags of convenience is
of long standing and has been partly based on the
view that such ships provide unfair competition to
our shipping in so far as the profits of their opera-
tions are immune from tax unless repatriated. At
present, Pritish shipowners pay little tax because of
past losses and flexible depreciation arrangements,
but close companies are at a disadvantage compared to
flag of convenience omers.
10. Mr Pao has also from time to time caid that he would
like to see more of his ships built in British as opposed to
Japanese yards. But he has followed this up with a string
or reasons why he finds British shipbuilders unsatisfactory
for his purposes.
Most of his criticiums are practical and
to the point and the Prime Minister wight find it interestin
to listen to him on this subject.
11. He recently donated a barque to the Maritime Trust,
which lies in Plymouth.
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CONFIDENT TAI