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BRIEF FOR MINISTER OF AEROSPACE AND SHIPPING
draft brist prepared by
DMI for Depp Maxelting use at the Chagrasschriner four
JK Pazem 2/12/72 imggested Shanged to
PROPOSAL TO SET UP A 35PARATE REGISTER FOR
CHIPS REGISTERED IN HONG KONG
paras 295
воз
The attitudes of the Hong Kong Government and Mr Pao on nature of the proposed separate register for Hong Kong ships al rud cally different. These are summarised in Appendix 1, which also shows that Mr Pao's views seen 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 shine owned by Hong Kong residents and companies with their principal place of business in the terr cory, whereas ir 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 soutable maritime countries and to permit Hong Kong's long term residents to obtain certificates at First Hate and First Engineer lovels, 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- dardo. 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 accommodation 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 COD, ILO and ICO. These differences in attitudes between the Hong Kong Government and Mr Pao are substantial and, in dis- cussing this problem with Mr Pao, it is important to keep in mind that while we are interested in his views and the action he would take if a seperate 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. HMG must not be put in the position of appearing to negotiate with Mr Peo. Most of the issues under consideration would require discussion with representatives of the UK shipping industry before firm commitments were made see peragraph 4.
2. As explained in your recent submission to the Prime Minister vo are crepared to go some way to helping the Hong Kong Covernment, 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 sortificates of competency, it being understood that it is at these levels where the shortage oxists. Admittedly, we could also
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