CONFIDENTIAL

Mr Ridley, Secretary of

visited Peking (22

State

for

Transport, has

subsequently

25

September).

The Chinese

Minister

of

Communications told him that

him that the Chinese response to the paper would

be passed to us through the Joint Liaison Group (JLG).

6.

In the light of Chinese views, and of separate discussions to

be held between Hong Kong Government and Department of Transport

officials in London in November, the Hong Kong Government will draw

up a draft policy statement which, after consultation with

interested parties in Hong Kong, will be discussed with the Chinese,

probably at the third JLG meeting (March 1986), before publication.

7. The Hong Kong Government hope to be able to introduce the new

register by about 1990. Before then, a number of legal and other

problems will need to be resolved. One of the most crucial will be

Hong Kong's status after 1997 within the International Maritime

Organisation and other

bodies, and its need to

continue to comply with international maritime conventions.

international

This

will be essential if the new register is to retain international

respectability.

Such arrangements will probably need to be discussed with the Chinese in the JLG before approaches are made to

the international organisations concerned.

8.

to

A sensitive issue not covered in the consultative paper i s

whether ships registered on a separate Hong Kong register would be subject to requisition in time of war by the Crown under the Royal Prerogative (or legislation which might reinforce it). We have told the Hong Kong Government that UK legislation would be needed renounce the powers of the Prerogative. Politically this would be impossible, given current parliamentary pressures to ensure that HMG has access to adequate shipping in times of war ог other emergency.

The Hong Kong Government

reluctance accepted

have

with s ome

that

to requisition remains. In practice however the extent it might be used against Hong Kong ships would be affected

HMG's power

to which

by:

(i)

the fact that these are likely to be further away from the UK than ships registered in other UK dependent territories;

CONFIDENTIAL

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