CONFIDENTIAL

291

४०)

Mr. Stuart (HKIOD)

Hong Kong Shipping Register

I have marked to you this afternoon Mr. Heseltine's minute to the Prime Minister on Mr. L. K. Pao's suggestion of a separate Hong Kong shipping register. Lord Bridges is rather sceptical of many of the arguments employed by Mr. Heseltine and has mentioned on the copy going to the Prime Minister over the weekend that the Foreign and Commonwealth Secretary will be commenting shortly. I have asked for a draft by Monday..

Hence

2. Lord Bridges in particular mentioned that there seemed to be an inconsistency in the DTI's attitude to Certificates of Registration. In one section of the minute they refer to the dangers of Hong Kong accepting any foreign certificate of Registration; in the last paragraph they say that they might be prepared to consider acceptance of a limited number of foreign certificates. He also thought many of the arguments against Mr. Pao's suggestion as listed in Mr. Heseltine's minute were bogus. Finally the minute set out the arguments against having a separate Hong Kong register but did not put the advantages for Hong Kong. I think we should therefore spell out the FCO's view fairly fully in the draft minute for the Secretary of State's signature.

CONFIDENTIAL

c.c. Marine and Transport Dept.

Pbratte

(P. H. Grattan)

16 November, 1972

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