iii Special Examinations for Experienced Officers on Hong Kong Registered Ships

Informal soundings of the UK seafarers unions indicated that arrangements on the lines proposed by the Study Team might be acceptable to them, despite the hostility of the ITWF's resolution on the Hong Kong register proposal. The case for these arrangements was based on the assumption that standards broadly equivalent to those applying in the UK could be maintained in Hong Kong during a transitional phase until proper training facilities were fully in operation by setting up courses and examinations to cater for experienced candidates relatively lacking in theoretical knowledge. The unions were also concerned about rates of pay in Hong Kong.

iv

British Master Requirement.

The Bermudian Government, who were also negotiating for a separate register, had argued for a relaxation of the requirement for all masters on Bermudian ships to be British on the grounds that many of the ships which would join the separate register would have masters from other traditional maritime countries with reputable certificates. Any concession given to Bermuda would have to be given also to Hong Kong, where to date all requests for relaxation of the requirement had been steadfastly refused, largely on defence grounds. It was agreed that a meeting with MOD to discuss the defence consid- erations would be useful.

Presentation to Hong Kong

No further approach to the Governor could be made before Ministers had been consulted. But if Ministers decided to go ahead with the proposal it would be necessary to have an assurance that the arrangements were acceptable to the Hong Kong owners before negotiations with the Japanese, and consultations with the BMEC and the unions were initiated. Under the circumstances, there would be advantage in sending the Study Team's Report with all its annexes to the Governor. The Governor should also see the ITWF resolution and be aware of the unions concern over rates of pay. On the trade side Hong Kong would be resentful if it appeared that the UK was blocking progress on he register for commercial reasons, but it should be stressed to the Governor that because of the implications for UK companies, discussions with the Japanese were necessary to explore the possibility of countervailing concessions. In any case, the object of the approval arrangements was to ensure that a double standard for Hong Kong as opposed to UK ships did not appear to exist and thus the ultimate benefit was to Hong Kong.

MAR 1A

21 March 1974

DISTRIBUTION:

Those present and PS/Sir Peter Thornton Mr Hubback Dep Sec

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