ESSENTIAL FACTS

CONFIDENTIAL

Shipowners' Losses

1.

The losses associated with rescuing refugees can be very

substantial and the risk is considered uninsurable. It might

on balance suit our national interests to propose or support

ideas for an international fund to provide compensation. Apart

from the obvious problem of funding (and finding the UK contri-

bution), however, such ideas would give rise to the response

that the major losses are incurred only when the Flag State is

slow to provide any guarantees that may be required to ensure

disembarkation at the first port of call. In any case, if the

measures proposed in Part II are accepted, the problem of loss

should become much less acute.

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2. The proposal in Part II, paragraph 5 (ii), is designed to

counteract provisions in some charter parties that losses due

to delay when a ship has picked up refugees, as distinct from

survivors of shipwreck, etc., should fall on the shipowner. Such

provisions impose additional pressures on the Master to ignore

his obligations to render assistance.

Refugee-Running

3. Hong Kong is considering the introduction of legislation

in an attempt to reduce this problem. Provision would be made

to distinguish between ships calling at Hong Kong as first port

of call with refugees rescued at sea and ships chartered-in for

the express purpose of trafficking in refugecs. The onus of

proof of rescue would be on the ship's owner, Captain, crew and agent.

CONFIDENTIAL

/UNHCR

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