4

CONFIDENTIAL

4.

The main points in the document

JLGIII are:

prepared for discussion

at

(a)

(b)

ownership: to qualify for registration a ship must be owned

by either (i)

a corporate owner incorporated in Hong Kong;

an individual ordinary resident in Hong Kong.

the ship must be managed and controlled in Hong Kong and there must be a representative person ordinarily

resident in the territory for purposes of enforcement.

or (ii)

In either case,

manning:

eligibility to serve on a Hong Kong-registered ship

would be by technical ог professional qualifications, rather

than by nationality. This means in particular that the

for certain

present

requirement

officers

to

be UK,

Commonwealth or Irish citizens would cease. The standards of qualifications required would be maintained at present levels.

(c)

flag:

be

flags:

the

the

PRC

two Hong Kong- registered ships would fly upper flag would the Red Ensign before 1997 and flag after that date, and the lower one Hong Kong's flag

before and after 1997.

(d)

5.

financial aspects:

the costs of the register's operation

would be met by charges levied on users.

No changes are

envisaged to the tax regime as it affects shipping operations.

the

We hope

receive at to

least prelimina ry

from comments

Chinese at the March JLG and would

JLG and would then propose expert discussions

In v i ew of the responsibility of the

to take matters further.

Secretary of State

State for Transport for the satisfactory operation of all British registers of shipping, it is likely that DTP officials

officials participate with Hong Kong Government these expert discussions. The experts' conclusions would then be

considered in a subsequent JLG meeting.

will wish to

in

CONFIDENTIAL

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