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standards or by setting up a "flag of convenience" under the Red Ensign;

b) the possibility that egmore flexible manning

requirements would tempt owners with ships registered in the UK to re-register them in the Dependent Territory.

Various arguments (eg the anomalous position of Bermuda) can be brought forward to offset the DTI's views, but in the present context I recommend that the Secretary of State should simply indicate that we will look carefully at Mr Ludwig's proposals with a view to calculating the balance of advantage. The wider implications, which involve our relations with the international shipping

community as well as the interests of our dependent territories, can then be studied inter-departmentally before a final Ministerial decision is sought.

20 February 1973

cc:

J W Maslen

Marine and Transport Department

Sir Duncan Watson

Mr Whitehead

Mr C S Roberts (Caribbean Dept)

Mr N BJ Huijsman (WIAD)

Mr AC Stuart (HKIOD)✔

Mr J Wilson (WAD)

Mr H Halliwell (Consular Dept)

PS to Lord Balneil

Mr G R W Brigstocke SPD, DTI

Mr J N Archer Marine Division, DTI

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