vessels are registered, manned and inspected.

Acceding to Hong Kong

Eve

pressures on officering would make it more difficult to resist demands from

Bermuda, and possibly other territories, for a similar relaxation.

more important, any relaxation of the British link in respect of Hong Ko

would make it far harder to protect the British flag generally from the

charge that its relatively liberal conditions of registration make it a

flag of convenience, a charge which if successfully sustained in UNCTAD

would damage Hong Kong and the other "sub-registers" as well as the UK

itself. UK shipowners, including those who own tonnage in Hong Kong az

part of the general British connection, would not welcome the creation o

a separate register and the seaman's unions could also be expected to be

hostile. Finally, a separate Hong Kong register could prejudice mariti.

relations with China, including the chances of reaching a Maritime Agree

ment. Although earlier negotiations on this broke down over China's

unwillingness to extend the benefits of the Agreement to Hong Kong state.

vessels registered in Hong Kong, there have lately been signs that she

could now be more accommodating. Any dilution of the British link couli

make the position more difficult again.

7. The foregoing is written on the assumption that Sir Y K Pao is seek.

not freedom to employ officers with any certification but freedom to

employ officers who would still meet British standards in terms of

qualifications, skills and experience. If this assumption is dropped,

that is, if British standards are not to be maintained, the

resultant fall in standards is a powerful argument reinforcing

the economic arguments against the separate register. But even

if officers standards were to be maintained, there must surely be

doubt about Hong Kong's ability to meet standards in other`

areas. For example, although there is a localisation policy in employ

surveyors, the nautical surveyors used are still British, half of the

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