Reference

CONFIDENTIAL

Mi

Mr Crowson

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1.

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HKK 21

MR Archer's letter

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12/1/201

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I went to see Mr Standen on 28 October to discuss the outcome of his visit to Hong Kong which he made in connection with the Hong Kong Register of Shipping. Mr Standen explained that he was only in a position to give me the views of his own branch (on policy), of Branch 2 (safety) and Branch 4 (manning) of the Marine Division?. Their combined view was being submitted at a meeting on 24 October to their Minister, Mr Heseltine.

2.

Mr Standen said that whilst his visit to Hong Kong had enabled him to see more clearly what Hong Kong wanted in this connection, Marine Division was still unable to recommend the setting up of a separate Hong Kong Register. He accepted that the Hong Kong Government spoke in good faith when they said they would maintain standards and agreed that they were capable of administering their own Register. However, Marine Division thought that in asking for a separate Register the Hong Kong Government were under the misapprehension that it would give them complete control of shipping matters. It would not.

3. There are 2 separate issues. One is the prestige of Hong Kong being able to show that it ran its own Register. In fact there would be no alteration to the present system. But The Hong Kong Government said that ships registered in Hong Kong under their own Register would continue to fly the red ensign just as ships currently registered in Hong Kong as a part of the UK Register flew the same flag. The UK could not pass over its international shipping obligations to the Hong Kong Government while it remained a dependent territory without ensuring that the same standards obtained as in Britain. He pointed out that Australia did not have its own Register of Shipping.

4. On the practical side Marine Division were proposing that Hong Kong should be authorised to set up its own testing laboratories for checking equipment standards. Where Hong Kong could demonstrate that it had adequate facilities DTI would pass over its former functions in this regard. This took care of one of the main economic points, namely that ships built eg in Japan for Hong Kong ship owners could have equipment certified in Hong Kong without the practical hurdle of that equipment having to be sent to Britain for conformation with British standards. However, the general maintenance of standards would be the same, but delegated to the Hong Kong Government.

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The second major practical problem for Hong Kong is

Here the main difficulty was over Second Engineers and Second Mates. The British Shipping Acts of 1894

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DD 897152 154596 500M 2/72 GM 3643/2

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