One possibility that might be investigated was the naturalization' of officers at sea in Hong Kong registered ships by treating them as if resident in Hong Kong but this had wide implications and was principally a matter for the FCO and Home Office.
5. Other points made on the manning side were as follows:-
considered
(a) The local GPO we insist that the British nationality requirement be retained for radio officers. This would be inconsistent with the dropping of the nationality requirement for first officers.
(b) No progress was being made in the extension of the ILO seafarers' conventions to Hong Kong. This would be viewed with concem by the UK unions.
(0)
It was agreed that the admission of aliens without a sponsoring government to the First Class Certificate examinations for both Engineers and Masters and Mates should be permitted, as suggested by the team, and the Director of Marine in
Hong Kong could be informed accordingly; certificates would be with held until naturalization.
APPROVAL OF JAPANESE EQUIPMENT AND MATERIALS
6. The UK was under pressure to accept equipment made in Japan for use on ships registered in Hong Kong and this acceptance would inevitably have to apply to UK registered ships also. This could involve a lowering of UK standards, because the Japanese Government did not exercise strict control over the equipment manufacturers, relying mainly on the Japanese classification society NKK, who were known to accept manufacturer's guarantees as sufficient evidence of the maintenance of standards and were thought to be significally less stringent than other classification societies.
7.
There was also an underlying commercial interest. The UK at present exported safety equipment to Japan for installation in ships building for UK owners. If Japanese equipment were accepted for British chips this situation would change radically, Hitherto, the Japanese manufacturers had not been sufficiently interested in getting their equipment accepted for UK ships to pay for DTI surveyors to test and approve their equipment (with some exceptions). If, now, Japanese equipment were accepted, Japanese shipbuilders could present to UK owners the 'package deal' of a Japanese- built ship with Japanese equipment, classed with NKK for insurance purposes, at an attractive price. The cheapness of the price would be facilitated by the greater control the Japanese shipbuilding yards would have over the whole construction process. Use of Japanese equipment would also increase their competitiveness in avoiding delays in delivery. There were also wide implications in that Japanese equipment would be enabled to displace British equipment on ships built for UK owners anywhere in the world. If commercial pressures were the main motive behind the move for a separate registry (Y K Pao, the main instigator of the move, was closely connected with Japan where his activities were largely financed) than it appeared that the setting up of a separate Hong Kong Register could be against the interests of British shipbuilders, equipment manufacturers and Lloyds Register.
8.
It was argued that the difficulties outlined by the team's reports made it unlikely that their final report would be in favour of a separate register. On the other hand Mr Stuart pointed out that the difficulties encountered by the team WATE not unexpected. It was moreover important in terms of the UK's constitutional role in Hong Kong's affairs that the Governor should not be presented with a flat refusal. There might well be room for negotiating with the Japanese on the acceptance of equipment; the reciprocal acceptance of British equipment for Japanese ships could probably be achieved and there might be concessions in other areas whion could be