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that plus cross trading, also by UK flag ships. UK flag ships include of course those registered in dependent territories. But we should only move to the second stage if it were clearly established that we would be undertaking no more than our partners, and that there were reasonable guarantees that no one would be able to cheat. A strong effort should be made to resist the inclusion of chartering-in of non-UK flag ships by British ship- owners. And we should have no truck with the suggestion of including ships owned by UK (and of course Community) nationals but not flying the UK (or Community) flag. I would expect DOT officials concerned in the Parliamentary drafting, and Community Co-ordination also to be briefed along these lines.
5. A further complication is the position of the BP tankers. Mr Fall is getting the details up-dated, and may wish to comment further. His immediate reaction is that, if the measures can be confined to end-to-end shipping by UK flag ships there should be no problem for BP unless the Iranians are looking out for ways to retaliate. If UK flag ships in cross trades are covered, one at least of the tankers in question is likely to be involved. If ownership and chartering criteria were included, the BP case would illustrate most of the problems I have referred to above - with, of course, the added complication that some of the British officers and crew would be very much at risk if they sought to act against Iranian instructions in situations where it is the Iranians who have de facto control.
Michard Bunkan
M St E Burton
Maritime, Aviation and Environment
Department
сс
Lord Bridges Miss Brown
Mr Fall ESSD
HK&GD
Mrs Denza
20 May 1980
NAD
ECD (E)
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