CONFIDENTIAL
7. ON THE REGISTER, COMMENTS RECEIVED HAVE CONFIRMED HKG VIEWS THAT STANDARDS SHOULD BE MAINTAINED FOR BOTH SHIPS AND CREW: THAT THERE SHOULD BE GENUINE LINKS BETWEEN THE SHIPS AND HONG KONG: AND THAT HONG KONG SHOULD NOT BE A FLAG OF CONVENIENCE. THE MAJOR ISSUES BETWEEN HKG AND THE SHIP OWNERS ARE ON THE FLAG. REQUISITION AND TAXATION. SHIP OWNERS WANT A TAX HOLIDAY: RIGHT OF REQUISITION REMOVED AND THE ABILITY TO FLY A HONG KONG FLAG AS OPPOSED TO A NATIONAL FLAG. POSITION ON THE FLAG AND REQUISITION IS AS AT PARA 1 ABOVE. NOW VIEW YET REACHED ON TAXATION. IMPLEMENTATION OF THE REGISTER PROPOSALS WILL REQUIRE CONSIDERABLE HONG KONG LEGISLATION OUTSIDE THE SCOPE OF THE 1894 MERCHANT SHIPPING ACT AND ALSO OF THE DRAFT MERCHANT SHIPPING BILL.
YOUDE
LIMITED.
HKD.
FED
MAED
PS/MR RENTON
SIR. W. HARDING
DR. WILSON.
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CONFIDENTIAL