RESTRICTED
Foreign and Commonwealth Office
London SW1A 2AH
Telephone 01-
TARK 175/
no 725.2 10 13/3
Your reference
6
Roger Brown Esq
SP 3C
DOT
Our reference
MRS 175/2
Date
20 February 1980
FLAGS OF CONVENIENCE (FOC)
1.
Thank you for sending me a copy of the recent UNCTAD study on beneficial ownership.
2.
Although we regard the information as statistically useful and important, we are left with an impression that we may perhaps be a shade over-confident about the relative ease with which Hong. Kong can be defended in the FOC context, given the preponderant role played by Hong Kong and the recent growth of FOC, as illustrated in the study.
3.
We recognise that the extent of Hong Kong beneficial ownership of FOC tonnage is not something which the UK is likely. to be called on to defend, but what would happen to these ships if FOC registers were wound up? Would most, if not all, in your view, go on to the Hong Kong register itself?
-
To allay our worries on this scope, it would be helpful if you could set out in detail the arguments we should deploy in defending Hong Kong. Are these basically still the same as in Annex B to Arthur Pryor's draft. paper of 14 August last?
cc: Stuart Connolly Esq
SP IC DOT
bea: HKGD WIAD
CO Wood
Maritime, Aviation and Environment Dept