CONFIDENTIAL

4.

In connection with the principles that what is acceptable to the Hong Kong register should also apply to the UK register, it is important to maintain the principle of there being no question of double standards. I asked that this point should be brought out in any message to the Governor. It may not be immediately recognised in Hong Kong that the extension to the UK register of any concessions made in respect of equipment for the Hong Kong register is of wider

advantage to Hong Kong in that it scotches the possibility of

Pinanced

that the MNAOA and the ITF alleging that these concessions are creating a flag of convenience. Were the idea that standards for Hong Kong are different- and it would be assumed lower-than those of the UK then the repercussions could be widespread. In this connection the meeting agreed that an amendment should be made to the teams report in respect of the representation in Japan; the leader of any team will be a Department of Trade officer paid for out of UK funds. He will presumably be supported by a Hong Kong Government appointee. From our point of view a UK Department will ensure that standards for equipment'are maintained for both the UK and the proposed autonomous Hong Kong register. The officer concerned will also be a surveyor to carry out work in connection with the construction in Japan of ships for the UK register. An important additional advantage is that a UK based officer surveying construction of ships will have entrée into Japanese yards and should therefore obtain information of potential advantage to UK exporters which can be filtered back through the commercial section of the Embassy/Consulate General. And this can be used to allay residual fears of the loss of British exports on the safety equipment side.

5. Finally, and more in connection with the Bermuda register, Mr Archer proposed to go into greater depth with the Ministry of Defence the requirement that Masters of ships must in all cases be British. The consensus view of the meeting was that this was a requirement which could not be waived but clearly if it is it will have importance for the Hong Kong register. However, it is not thought that any change in the requirement will be made in the immediate future and no mention of this possibility should go to Hong Kong.

Fellows.

21 March 1974

CONFIDENTIAL

M A Goodfellow

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