CONFIDENTIAL
(5)
(6)
In order to assist with the very considerable amount of work involved and to demonstrate that no lowering of standards would take place, we would second a number of experienced surveyors to Hong Kong. These would comprise a mixed discipline group probably headed by a surveyor equivalent in rank to Deputy Chief. The surveyors would be paid by the Hong Kong Government (increased registration fee revenue should cover the cost), would form part of the Director of Marine's staff but would be able to ask him to refer matters to London where decisions contemplated were felt to involve a significant difference in standards than for UK ships. These surveyors would be concerned with all matters affecting the acceptance of safety equi ment manufactured outside the UK, crew accommodation and acceptance of certificates under paragraph (3) above.
The revised terms applicable to the Hong Kong register would until further notice be limited to the ships of existing Hong Kong shipowners, This would partly be dictated by the work load (an extra 10m gross registered tons) but would also avoid the difficulties foreseen here that there would be a flight to the Hong Kong register in which UK shipowners would be at a disadvantage.
The definition of 'existing Hong Kong shipowners' needs some careful thought: we might use as a basis the returns covered by Appendix I to the Director of Marine's Note enclosed with his letter of 1 June but we would need to take account of the position of British companies such as Jardines and Butterfield and Swires and preclude communist Chinese and Taiwanese owners with a base of operations in Hong Kong from taking advantage of the Red nsign. At a later stage, when discussions with EC countries are further advanced, the question of applying the conditions move widely eg to ships of companies with a newly- established place of business in Hong Kong could be considered. A further change in the relevant Ordinance might well be required then.
In our view the proposal would have the following advantages:-
(1)
(11)
(111)
it would permit a speedier and more satisfactory solution of "qualification" problems on manning;
it would wholly answer your Director of Marine's fears on.crew accommodation and safety equipment matters that it would be "time-consuming and possibly impracticable" to refer to DTI new questions requiring resolution: most of these could be solved on the spot;
it would silence or minimise in advance any criticism that the Hong Kong register of shipping had become a "flag of convenience" with its attendant risk of reprisals against both Hong Kong ships and Red nsign ships generally.
An agreement on these lines would need very careful handling here with both sides of the industry and we do not believe that we could go further without unacceptable difficulties with them. Mr Pao indicated recently in informal discussions that point (1) at least
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