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discussions on Masters, given that these would take place
within the next two years and that it would take this long to
establish the register anyway.
3. As the result of the meeting with Mr Heseltine it was
agreed that the DTI would pass the "Consultative Document" to
UK shipping interests in its present form and that the Hong
Kong Government would do the same to ship owners in Hong Kong.
Mr Heseltine would then discuss the position with the Governor
and with Mr Y K Pao next week in the light of the latter's
reactions to the paper.
+
4. DTI officials remain doubtful of the Hong Kong Government's
ability to maintain standards and suspicious that Mr Y K Pao,
having now been offered more than he originally asked, will not
be satisfied until he achieves full flag of convenience arrange-
ments in Hong Kong. Mr Heseltine conceded to his officials that
we might, at the end, decide with the Governor of Hong Kong that
the concessions asked for were limitless and unreasonable. But
he is prepared to argue this out and sees no particular need
for secrecy about concessions which can be offered.
5. I said that I believed FCO Ministers would concur in
Mr Heseltine's proposed action.
ACSta
A C Stuart
Hong Kong & Indian Ocean Department
16 March 1973
J
don't think Director
of
Marine 17K will let standards
Copy to:
M & TD
Mr Crowson/Goodfellow
scip
Ch
acceptable
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I hope that the document will prove
basis for agreement
Kiwife 16/09
(Over)