to give him greater flexibility especially with regard
to new tonnage and also because other Hong Kong ship-
owners, with whom he has worked closely in these
negotiations, would find much more difficulty in
satisfying the conditions. Certainly the new tonnage
they are now offering, given two different sets of
conditions neither of which are acceptable, suggests
that they are holding back in the hope of getting their
own way.
In my view it would be wrong to make further concessions
to secure a more favourable offer from Hong Kong ship-
owners. Every move towards compromise so far has come
from our side and we have already encountered opposition
from both UK shipowners and unions. To give way further
would not only be wrong in itself but would be bound to
lead to considerable opposition at home. This might in
turn be reflected in international union action not only
against Hong Kong registered ships, but against other
Red Ensign ships.
The UK shipowners, who have been consulted on our latest
proposals, would be prepared to accept them provided
that they also could be allowed access to the Hong Kong
register in the initial years under the proposed more
favourable conditions. While we are prepared to discuss
this further with Hong Kong if they decide to proceed,
I doubt if we should agree to it: it would be
undesirable to run the risk of a flight from the UK
register merely because we have made concessions to
/meet strictly
!