C 1877
Reference
8.
9.
10.
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3 -
growing. A possible variant of this proposal would be to allow
one to have a separate register for prestige reasons
these terms while not seeking to prevent access to it by UK shipowners. if foreign equipment were to be approved for both the Hong Kong and UK registers, the attractions of the nationality concessions might not of themselves be sufficient to lead to many transfers from the UK to the Hong hong registers.
We have to recognise that this course would probably not satisfy Mr. Pao or the Governor and would be unlikely to attract to the Red Ensign many ships at present registered under flags of convenience. Clearly we should need to convince the Prime Minister if we were to modify our proposals in this way.
Our inpediate problem is how to advise the study team to deal with their interview with the Governor before they leave Hong Kong. we propose to advise them to tell the Governor that they have not yet written their report, to outline the problems which they have found, and to refer to any features which have impressed them during their visit. All the options would be kept open until after the team's return, though in accordance with the agreement reached with the Governor when you met him last, the team may be obliged to acuaint him with the results of their interviews with officers,
Generally, I think that the difficulties of a separate Hong Kong register now look more formidable than they did before the team left and I now feel considerable doubt about pressing on with it against the opposition of both sides of our shipping industry when the main - possibly the only - beneficiaries appear to be Hr. Pao and the Japanese, You will no doubt wish to discuss how the matten should now be dealt with and at what stace No. 10 and the Governor of Hong Kong should be alerted to the likely outcome of the study Team's visit. The FCO have advised that the Governor should be acquainted with the Team's conclusions and actively consulted before any final decisions are taken.
cher.
JA. ARCTER
KAR 29.11.73