CONFIDENTIAL

3. However, whatever happened at Mr Heseltine's meeting, it

is obviously desirable that in their current consultations, the

Hong Kong Government should not go outside the companies with

a close connection with Hong Kong, and particularly that they

should not pay any attention to the Taiwanese or Communist ship

owners. It may not be possible for them to confine their con-

sultations to ship owners who actually have British nationality.

The Hong Kong Government are always careful to distinguish as

little as possible between those who have a British passport

and the Hong Kong Belongers who do not. They may accept the

argument that Masters, and even First Officers, have to be

British subjects if British laws are to be brought home to

them when they are outside Hong Kong. But I believe they would

expect that owners who were not British subjects would be

acceptable, provided that they had a real connection with Hong

Kong, as set out in the consultative document.

4. I do not think that the Hong Kong Government would want to

consult with owners who are not Hong Kong Belongers. But I had

anyway intended to underline to the Governor next week, our con-

clusion that delay is undesirable, particularly if Hong Kong can

be blamed for it. I will take the opportunity to say that we

assume, of course, that the consultations on the new Register

would be confined to those who would eventually benefit from it.

A C Stuart

Hong Kong & Indian Ocean Dept out the issue verry

4 May 1973

This seto

clearly in

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