PRIME MINISTER

DRAFT MINUTE

HONG KONG: SHIPPING

You will recall meeting Mr Y K Pao of World-Wide (Shipping)

Ltd, Hong Kong, in June of this year. Mr Pao, whose

company owns some 7m tons of shipping, mainly registered

in Liberia, suggested that if certain changes were made in

Hong Kong shipping legislation this would reduce the

disadvantage of registering ships in Hong Kong and help

the Colony. The Hong Kong Government have also raised

this question. You asked that the matter should be

examined and a report made to you.

2. We have thoroughly considered the question. An

official has been to Hong Kong to discuss the proposals

of the Hong Kong Government and discussions with the

company have taken place both in London and Hong Kong.

3.

The proposals of Mr Pao were, briefly, as follows:

(i) that Hong Kong should cease to be, in effect,

part of the UK register of shipping and should

have a register of its own;

(ii) that the requirements that the master, chief

officer and chief engineer should be British

subjects and that the second officer and second

engineer should hold British certificates of

competency should be dropped;

/(iii) that

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