CONFIDENTIAL
4.
Regarding safety equipment, I have been asked to point out that the acceptance of Japanese safety equipment for Hong Kong vessels would also apply to UK vessels and hence the problem of reciprocity is not negligible. In practice we do not envisage any major problems in relation to new ships providing Department of Trade standards are specified before the contract is signed. The Study Team considered this aspect very thoroughly and their Report deals with it in Annex 2; Section 1 Conclusion 2 and in Appendix 6 which details the degree of non-compliance with present Hong Kong/UK standards. In fact Japanese shipyards have built many ships to UK/Hong Kong requirements already and in Annex 2 the team state that there does not appear to be any obstacle to Japanese manufacturers producing equipment to UK specification. Japanese equipment prototypes would have to be tested in the usual way, though it is probable that this would be facilitated, if the Register went ahead, by the presence of a Department of Trade surveyor in Japan.
5.
With reference to existing ships, the team gained the impression that only relatively new (post 1965) ships will be considered for transfer to a separate Hong Kong Register.
The same arrangements for existing ships would apply as for any foreign vessel coming onto the existing Hong Kong on UK registers and are well known by local owners. Each ship is dealt with on an individual basis by the surveyor concerned and such ships are brought up to British standards as far as is reasonable and practical. However, a flexible approach is adopted; structural and piping alterations are not normally insisted upon and, providing safety equipment were to the surveyor's satisfaction, it is not rejected solely because it has not been manufactured and approved to UK requirements. Some minor items of equipment (e.g. breathing apparatus) are, however, required. This subject is discussed in detail in Appendix 6 of Annex 2 of the Study Team's Report.
6.
In the light of the discussion with the Governor, when most of these points were made, it emerged that the time was probably not right yet to press the issue to a decision in the near future, but that thinking should continue in the meantime on nationality requirements for officers, training, and a special examination in Hong Kong as well as the commercial problems regarding Japanese safety equipment.
7.
It was also agreed that we should try to agree a common line with you about the present situation, for use if necessary with the press and public. We think this should be that officials are carefully considering a number of problems relating to examination standards and the approval of safety equipment. Discussions are continuing in order to assess the common area between the needs of The Hong Kong shipowners on the one hand and the need to maintain safety standards under a long kong register on the other. The matter has not yet been put to Ministers for a decision. I should be glad if you would let me know by telegram whether you agree.
VONDT DONUTIT AT
18.