}

boreda 96

Hong Kong

union concerned.

We have not yet put to the

unions the further easement mentioned above and

this is likely to be sharply criticised, 80

please ask the Hong Kong shipowners to treat

this as in confidence for the moment.

5. We are not prepared to entertain any change

in the British nationality requirement for

Masters and the Ministry of Defence strongly

supports our view. While the new arrangements

would, of course, be reviewed after they have

operated for a trial period, by which time we

hope that our discussions with EEC countries

would have yielded results, it should not be

assumed that this would lead to further

relaxations on our side, particularly with

regard to Masters. We have already gone

further in our proposals than any other

traditional maritime country with a first-class

safety record.

6.

Before I can confirm these proposals, I

need to have a reliable estimate of the ships

and tonnage expected to be added to the Hong Kong register; the recent estimates are disappointing and our new modification is

designed to improve these figures substantially.

While I appreciate what is said in paragraph 4

of your telegram of 12 July, we need full

assurance that the considerable new moves

/contemplated

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