CONFIDENTIAL

Conclusion

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

viewc He may wish to ask him to spell out in detail the

benefits of setting up a separate shipping Register in

Hong Tong and his views on the notionality and safety

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

the meter further consideration.

13.

He may, however, wish to emphasise Hit's concern to

preserve the existing high standardo in relation to safety,'

equipment and accommodation for Pritish 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

CONFIDENTTAL

Page 120Page 121

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