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Separate Hong Kong Register
5. In context of UNCTAD attacks on open registries, Sir Y K Pao has
publicly suggested separate Hong Kong register. At present Hong Kong
is a port of registry under the British flag on same lines as London
or Liverpool. His aim is to make it possible to employ either non-
British certificated officers on Hong Kong registered ships. Would
allow some flag of convenience ships to move to Hong Kong register.
Hong Kong's marine administration do not have resources to cope with
any major expansion of register. [Not for use] Moreover under present
law, impossible to set up separate Hong Kong register under British flag.
Shipbuilding
6.
Since 1960's Sir Y K's company has obtained majority of new vessels
from Japanese yards. Two reasons. First, Japanese yards offer prices
and deliveries which are difficult to match. Second, World-Wide's
normal policy has been to order ships only against specific long-term
charter commitments by third parties. Japanese companies more prepared
than most to accept this. Sir Y K has suggested similar charter deals
with the UK but British Shipbuilders were unable to attract sufficient
interest from companies like BP or the BSC.
7.
However, in January 1981 Sir Y K placed a £23 million order for
4 general cargo vessels with British Shipbuilders' subsidiary Austin
and Pickersgill. His first order in UK for some time. Intervention
Fund grants enabled Austin and Pickersgill to quote competitive price.
Vessels due for delivery in 1982.
Bulk Market
1
8. Bulk market depressed due to recession and resultant decline in
seaborne trade. Little hope of short term recovery, especially in oil-
Problems in small tanker market could be met by scrapping
tanker market.
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