of competency to foreign officers nerving in senior poste in Hong Kong reglubonga
ships would almost:certainly lead to vigorous representations from thone
associations as being a retrograde step likely to prove inimical to the
interests of British certificated officers,
Either course of action would need the approvel of HMG by Order in Council and,
in accordance with normal practice, both sides of the shipping industry
would be informed in advance of the action it was proposed to take.
For chose reasons it would seem proferable to defor possible changes in rospect
of certification of senior officers serving in Hong Kong registered ships at
least until some progress is mado in consulting the UK shipping industry
on the possible carriage of foreigners, in particular from EEC countries,
in senior posts in UK registered ships.
ECONOMIC BENEFIT
It is difficult to assess the economic benefit to Hong Kong of the creation
of a soparate shipping register. If Hong Kong standards remained as high an
they are at present, then the Colony, would be unlikely to attract much shipping
currently registered elsewhero, except, evidently, for Mr Pao's shipe.
Registration fees are at present low and paid on a once-only basis. Running
costs of Mr Fao's ships such as port charges and insurance are nearly all paid
outside llong Kong. The profits from Mr Pao's shipping operations can enter
the colony whether or not his ships are registered there. Because tax-free
flags of convenience exist, shipowners generally, through, for example, us of
grants and investment incentives, avoid paying company tax, It seems unlikely
that Mr Pao or other Hong Kong shipowners would transfor their ships to
Hong Kong resident companies if this involved a significant tax on profits
either now or in the future.
It seems unlikely, therefore, that long Kong would dorive signficunt
"