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ANNEX C
EXPLANATORY NOTES AND COMMENTS ON
PROPOSALS CONTAINED IN ANNEX A
The approach of the Governments of the United Kingdom and Hong Kong to the question whether a separate Hong Kong register should be set up is explained in paragraphs 1 to 3 of the consultative document (ANNEX B) namely:-
(1)
to permit Hong Kong shipowners to register their ships in the Colony in which they have a personal interest and involvement instead of in flag of convenience countries such as Liberia, and
(2) as a result to ensure that higher standards of safety and
manning are applied to such ships.
Although certain modifications in the conditions applicable to Hong Kong ships should be made as indicated in Annex A, there is no intention to allow standards of certification, manning, safety equipment or crew accommodation to be debased. The modifications are necessary to ensure that proper account can be taken of the nationality and aspirations of a substantial proportion of the Hong Kong population and to assist in meeting a shortage of British officers.
If it is decided to set up a separate register the process is likely to take up to two years (as estimated by the Hong Kong Government) during which time the Hong Kong Government would have to augment and re-organise their administrative and survey staff to cope with the task which lays ahead.
Qualifications for Registry
Although this aspect was not discussed at the recent meeting in Hong Kong and is only touched on in paragraphs 16 the consultative document, it is of basic importance that the qualification for registry is clearly laid down should not have a "flag of convenience" option. An essential feature of a flag of convenience country is that it enables a foreign enterprise to set up a fictitious brass plate subsidiary in that country. The proposed condition in Annex A for qualifications for registry in Hong Kong is considered sufficient to establish national identity of the shipowner and a proper link between the owner and the country of registry. The condition is also designed to prevent transfer by United Kingdom shipping companies of their ships from United Kingdom ports of registry to the Hong Kong register.
In commenting earlier on the proposed reference to "principal place of business" the Governor stated that this term would be difficult to define and that cases might need to be looked at individually.
Certification and Manning
Reference is made only to foreign-going ships. There are numerous craft engaged in local waters which are covered by special Hong Kong regulations which have no corresponding counterpart in the United Kingdom.
1.