CONFIDENTIAL
DRAFT TELEGRAM TO GOVERNOR OF HONG KONG
Thank you for the paper enclosed with the Director of Marine's letter of 31.1.73 and your telegrams of 30 January and 1 February which we have carefully
considered. We have had an informal discussion with
senior officials of the Chamber of Shipping and Shipping Federation which did not bear out the view that British shipowners would be sympathetic to a relaxation of requirements which only Hong Kong registered ships flying the Red Ensign would enjoy. We have also decided to have on 19 February an "off-
the-record" talk with the General Secretaries of the
Seafarers Unions who have heard something of current
moves and are showing some restiveness.
While we note your intention to maintain high standards and accept that your Marine Surveyors are well- qualified, we believe that the combined relaxation of requirements as set out in the paper would be regarded as a move towards a new flag of convenience. Hong Kong registered ships would fly the Red Ensign this is the main political point which causes us concern.. More detailed questions are:
As
(a) What, if anything, could be done to stop UK
based shipowners setting up companies in Hong Kong in order to take advantage of the new arrangements?
(b) Which countries' certificates would be likely
to be accepted for issue of equivalent Hong Kong certificates and how would this affect our own consideration of reciprocal treatment over the next few years in EEC
and IMCO?
/(c) Is it