Sir Duncan Watson

PS Mr Royle

Mr Wilford or

CONFIDENTIAL

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HONG KONG REGISTER OF SHIPPING

1. The attached papers set out the present position in detail. They do not need to be read.

2. The Governor turned down the suggestion of discussions in London, this month, but detailed Hong Kong's proposals in writing. These are giving the DTI difficulty as they are moving further towards a flag of convenience for Hong Kong. The DTI have had an unfavourable reaction in preliminary discussions with the Chamber of Shipping and expect one from the unions. A debate is now going on within the Marine Division of the DTI who are under some pressure from their Minister to reach an agreement with Hong Kong.

3. I do not think there is any need for us to intervene at this moment. Matters are moving in the direction of an agreement, and the technical problems are not properly our concern. The DTI are proposing further discussions with Hong Kong on 5 March. This should be soon enough.

3

C

15 February 1973

CONFIDENTIAL

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ACSE

A C Stuart

Hong Kong & Indian Ocean Department

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