BRIEF FOR MINISTER OF AEROSPACE AND SHIPPING
PROPOSAL TO SET UP A SEPARATE REGISTER FOR
SHIPS REGISTERED IN HONG KONG
1. The attitudes of the Hong Kong Government and Mr Pao on the nature of the proposed separate register for Hong Kong ships are radically different. These are summarised in Appendix 1, which also shows that Mr Pao's views seem to vary depending on whether he is discussing the matter with Ministers or proclaiming his views publicly. In brief, the Hong Kong Government contemplates restricting the register to shins owned by Hong Kong residents and companies with their principal place of business in the terri- tory, whereas Mr Pao strongly favours an "open door policy" with no such restrictions. Furthermore, while the former are opposed to any reduction in the standards of qualifications of certifi- cated officers (although they would welcome some flexibility enabling them to accept the certificates issued by certain other renutable maritime countries and to permit Hong Kong's long term residents to obtain certificates at First Mate and First Engineer levels, but not Master) Mr Pao envisages the acceptance of certi- ficates of countries such as Korea, Taiwan and the mainland of China, a move which we believe would lead to a lowering of stan- dards. Moreover, in his speech he claims that shipowners should have the right to register their ships where they can obtain the advantage of lower wage rates and he appears to suggest that crew accommoda bion standards for Asians employed in Hong Kong ships are too high. It is precisely because of such practices that
flag of convenience" countries come under strong criticism from reputable maritime countries and from international bodies such as OD, ILO and IMCO. These differences in attitudes between the Hong Kong Government and Mr Pao are substantial and, in dis- cursing this problem with Mr Pac, it is important to keep in mind that while we are interested in his views and the action he would take if a separate Hong Kong register is established, the nature of the register and the conditions to be attached to it are essentially matters for consultation between HMG and the Hong Kong Government, HING must not be put in the position of appearing to nogotiate with Mr Pao. Most of the issues under consideration would require discussion with representatives of the UK shipping industry before firm commitments were made. - see paragraph 4.
2. As explained in your recent submission to the Prime Minister we are prepared to go some way to helping the Hong Kong Government, firstly by discussing and agreeing with them the areas where they are competent to test and accept equipment on Hong Kong ships as satisfying UK regulations and empowering them so to act and, secondly, by recommending that they should use more liberally their powers to dispense with the requirement that Second Mates and Second Engineers must have Hong Kong or accepted equivalent certificates of competency, it being understood that it is at these levels where the shortage exists. Admittedly, we could also