LORD GORONWY-ROBERTS'S VISIT TO HONG KONG:

BRIEF NO. 17:

PROPOSAL TO ESTABLISH A SEPARATE HONG KONG REGISTER OF SHIPPING

11-17 JANUARY

Hong Kong is at present a port of British registry; the conditions applying to

ships now registered there are essentially the same as for ships registered in

the UK. The Hong Kong Government and shipowners, however, wish to establish a

separate register under the Red Ensign, with standards broadly equivalent to

those attached to the UK register but with greater flexibility in order to reflect

the different situation in Hong Kong, as compared with the UK, in respect of the

availability of Department of Trade-certificated officers and of ships' equipment.

Such an arrangement would be expected to result in Hong Kong shipowners, who

currently register virtually all their ships under flags of convenience, register-

ing a much greater proportion of their fast-growing tonnage in Hong Kong where

requirements would be strict. It has been argued that this would lead to higher

overall shipping standards.

Discussions have taken place during the last two years between the UK and Hong

Kong Governments about the proposal that there should be à separate Register of

Shipping in Hong Kong. A study team from the Department of Trade spent two

months in Hong Kong, at the expense of the Hong Kong Government, at the end of

1973, to study in detail the feasibility of setting up a separate register. The

team's report has been sent to the Governor of Hong Kong, to ascertain whether

Hong Kong shipowners would be likely to transfer ships to a Hong Kong register under the conditions now proposed in the light of the team's report.

Detailed proposals are under consideration, on special examinations for experienced seamen in mid career currently serving as officers on Hong Kong owned ships, and on the approval of equipment and materials for incorporation in Hong Kong owned ships. Should the Hong Kong shipowners' reactions be favourable the proposals would be discussed further with both sides of the British shipping industry before a final decision was taken on the setting up of the register.

Ministers have not yet taken a view on whether or not a separate Register of Shipping should be set up for Hong Kong.

Department of Trade

3 December 1974

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