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CONFIDENTIAL
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seek an acceptable compromise. But we cannot conceal that the proposals, as they now stand, are disappointing from our point of view and we are doubtful of being able to persuade our shipowners to accept them in their present form. To stand back and look at things from their point of view, they would argue somewhat as follows. We are not talking about a British registry but a Hong Kong registry containing Hong Kong owned ships manned by Hong Kong crews. These ships and crews exist now but are registered in Liberia or Panama rather than Hong Kong. If we seek to attract them into a new Hong Kong registry this will be based on manning, safety equipment and crew accommodation standards which comply fully with standards laid down in international conventions and which, in due course, will be on all fours with British standards. The wages of the crews also will be good by general Hong Kong standards and very good by Asian standards.
8.
In these circumstances the shipowners wonder what e.g. the British unions are complaining about, because the alter- native is not that the ships will cease to exist or that they will be registered in Hong Kong as a British port of registry, but rather that they will continue to be registered under flags of convenience which means, of course, that they will remain, as now, outside the effective control of the Hong Kong Government.
9.
It would probably be helpful if you regarded this as no more than a demi-official and interim reply to the proposals on the team's Report. We, of course, have no objection to this letter being shown to those concerned in the DOT and I am enclosing two extra copies for this purpose. In the meantime it will assist us if replies can be provided to the points in paragraph 6 above, after which we can consider whether there is any further action we can take here to push the matter forward. I should add also that the Governor has been briefed on this question and may wish to discuss when he is in London.
ever
Tech
(D.J.C. Jones)
Secretary for Economic Services