ships for the Hong Kong and UK registers built in Japan, and also for incorporation in ships built elsewhere (including the UK) for these registers. We have therefore examined the possibility of our obtaining a countervailing concession from the Japanese. Direct reciprocity would not be meaningful because there are few, if any, ships building for Japanese owners in UK shipyards. It would be more worth-while to seek concessions on tariffs at present applied to imports into Japan of foreign equipment for incorporation in Japanese flag ships where a reduction in duty might help British exporters (eg. manufacturers of radar and steering gears). We do not want to over-emphasise the UK trade interest since the amount of trade involved is relatively small: we also understand that Hong Kong would resent any impression that the Colony's overall interests were being subordinated to narrow British commercial interests. If Hong Kong shipowners are content with our proposals on the certification of officers we should then need to discuss further the safety equipment proposals with the British marine equipment industry with a view to negotiations with the Japanese.
Views of the British Shipping Industry
8. The Chamber of Shipping and Shipping Federation are not particularly enamoured of the proposals for a Hong Kong register but would be prepared to accept them provided the ships of UK companies may be allowed access to the Hong Kong register as at present, The British Trade Unions (the MIACA is the one most closely concerned) have expressed strong opposition to the proposals in the past. The International Transport Workers' Federation, mainly at the instigation of the MNAOA, recently passed a resolution (copy attached) to the effect that their members would treat ships on an autonomous Hong Kong register as sailing under a flag of convenience. We have, however, recently taken informal soundings on the revised proposals set out above with the provision for a written examination rather than purely an interview and we believe that these proposals are likely to be viewed more favourably by the unions than previous proposals. A particular concern is that Hong Kong shipowners should not use the setting up of a Hong Kong register as a device to pay their crews less than they now earn.
9. If the Hong Kong shipowners are willing to go along with the present proposals we shall need to have further consultations with both sides of the UK shipping industry.
Marine Division
March 1974
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