examination, The guidelines would need to be drawn up after

joint consideration by Marine Division and the Director of

Marine of the standards of the certificates most likely to be

involved. Processing of applications would be done by DTI-

seconded surveyors.

If the Hong Kong Government's expectation of support were

realised the exercise would involve an examination of the

qualification of three officers on each of some 270 ships over

a period of perhaps 2-4 years. This should be feasible with

the number of seconded officers proposal.

The above concessions would apply in addition to proposals

already made.

All these arrangements would apply only in respect of ships

owned by genuine Hong Kong shipowners. Any extension to UK,

European or other owners would be for entirely separate

consideration.

ito reflect upon

the compétence or integrity of the Directorate of Marine. It is designed,

It seems to the UK Government that these manning concessions

go virtually all the way to meet the objections of the Hong

Kong Government to previous proposals and represent the "nuch

larger measure of agreement" referred to in para 4 of the

Hong Kong Government's minute. Combined with the "guarantee"

represented by the secondment of DTI surveyors, the total

package should be widely acceptable. We should emphasise that

the secondment of surveyors is in no way, intended first, to

solve the practical difficulty of bringing a large number of

foreign-registered vessels on to Hong Kong register under

revised manning arrangements and, secondly, to avoid any risk of reprisals on Red Ensign ships based on "flag of convenience

allegations,

3

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