CONFIDENTIAL

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 regis-

tration fee revenue should cover the cost), would form

part of the Director of Marine's staff but would be able

to have matters referred to the Surveyor-General in

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 equipment

manufactured outside the UK, crew accommodation and

acceptance of certificates under paragraph (3) above.

The Hong Kong register would until further notice be

limited to the ships of existing Hong Kong shipowners,

returns from whom are covered by Appendix I to the

Director of Marine's Note enclosed with his letter of

1 June 1973. 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. At a later

stage, when EEC discussions are further advanced, the

/question

CONFIDENTIAL

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