MR LANE
Kw
PS/MINISTER (A&S)
Reference MS 9/2/075.
70
сс PS/FUSS (A&S)
Secretary (A&S) Mr Hubback
سمة
Dep Sec
Mr Brigstocke SP Mr Manson SG (MAR)
Mr Standen MAR 1
J
see
submission of
PA 25 July
Mr Madigan MAR 4
A
Mr Goodfellow
FCO
HONG KONG REGISTER
73
75/e/ios
Since I wrote my minute of 19 July, a further telegram has been received from the Governor (copy attached). It does not bear out the information given to me that three-quarters of Mr Pao's present fleet has British Masters and First Mates but it shows that a substantial proportion at any one time are officered in that way.
I think there is little doubt that Mr Pao at least could comply with the conditions we have offered in respect of a good proportion of his fleet if there were a willingness to do so.
There has also been a modification in the position of the Shipping Federation. At the meeting I had on 17 July with the Chamber and Federation, they agreed with us that we were well-advised for safety reasons to insist on Seconds-in-Command being British or taking British examinations despite the fact that this might exacerbate the shortage of officers for UK ships. They now feel that they would prefer not to run the risk of reducing the supply and would accept a regime for First Officers on Hong Kong ships similar to that proposed for Chief Engineers and more junior ranks. Bearing in mind that they also want UK companies to have access to the Hong Kong register, this could lead to considerable pressure from UK companies to move ships to Hong Kong. Frankly, I feel that the Federation is adopting an irresponsible attitude in this respect. Mr Rice-Oxley has already suggested that those companies employing Hong Kong seamen might want to use Hong Kong registration as a means of avoiding pressure from the ITF to raise pay rates on UK ships and now they suggest that safety under the Red Ensign should take second place to considerations of officer shortage on UK ships. The seafaring unions would be strongly opposed to his line if they knew of it.
Mr Manson, Mr Standen and I have fully discussed these new developments and we do not think they justify any change in attitude though the telegram to the Governor and draft minute to the Prime Minister need amendment. I attach revised versions of these which we are due to discuss at 12 noon tomorrow. Only the first paragraph of the telegram is different and there are only minor amendments in paragraphs 3 and 4 of the minute to the Prime Minister,
CODE 1-77
135.
JN ARCHER
MAR
23 July 1973