GRS 1100 UNCLASSIFIED
FM HONG KONG
TO DESKBY 10090OZ DTP
TELNO SHIP 2
OF 100505Z JANUARY 86
INFO DESK BY 10090OZ FCO
TOP COPY
3
MKK 17S /1
RECEIVED IN REGISTRY
10 JAN1986
DESK OFFICER
DTP FOR O'SHEA, MARINE DIRECTORATE
INDEX
FCO FOR EHRMAN, HKD.
REGISTRY
PA
Action Taken
HONG KONG REGISTER OF SHIPPING: PROPOSAL PAPER
YOUR TELNO 0026 OF 7 JANUARY.
3
THERE IS LITTLE LANK BETWEEN (A) AND (B) IN OUR TELNO ALLOT 1." UNDER HONG KONG TAXATION LEGISLATION, THE PORT OF REGISTRY OF A SHIP DOES NOT NECESSARILY HAVE A BEARING ON THE TAX LIABILITY OF ITS OWNERS. SINCE, HONG KONG SHIPOWNERS CAN EASILY AND DO- STRUCTURE THEIR OPERATIONS SO AS TO PAY LITTLE IF ANY TAX E.G. BY MEANS OF OFFSHORE OR OF CHARTER-HIRE ARRANGEMENTS. 4T IS THE INTERESTS OF THE HKSOA'S WIDER MEMBERSHIP WHICH HAS DETERMINED ITS
STRONGLY HELD STAND ON OWNERSHIP. IN ADDITION TO THE BONA-F IDE OWNERS, THE MEMBERSHIP ENCOMPASSES SHIP MANAGERS AND ALL THE ASSOCIATED SERVICE PROFESSIONS. IT IS THE LATTER WHO WOULD LOSE OUT
IF A PROPERLY ENFORCED PRINCIPAL PLACE OF BUSINESS REQUIREMENT WEPE TO RESULT, AS SEEMS LIKELY, IN A NARROW DOMESTIC BASE AND THUS IN A REDUCTION IN THE NUMBER OF THE SHIPS ON THE REGISTER. WITH HONG KONG HAVING ESTABLISHED ITSELF AS A SUBSTANTIAL INTERNATIONAL SHIP MANAGEMENT CENTRE UNDER THE EXISTING (BRITISH) WIDE OWNERSHIP CRITERIA, WE AGREE WITH HKSOA THAT IT WOULD BE A RETROGRADE STEP TO REDUCE THE OPPORTUNITY FOR A PROPERLY MANAGED REGISTER TO ATTRACT TO IT WELL MANAGED SHIPS OF HIGH STANDARDS E.G. CERTAKN UK OWNED SHIPS WHICH MIGHT NOT MEET THE HONG KONG PRINCIPAL PLACE OF
BUSINESS REQUIREMENTS.
2. AS REGARDS YOUR SPECIFIC QUERIES:-
(4) NO. THE CHANGE REPRESENTS A REVERSION TO THE ORIGINAL-
AND INDEED OUR PREFERRED- PROPOSAL PUBLISHED IN THE CONSULTATIVE DOCUMENT. THIS WAS GENERALLY WELL RECEIVED BOTH BY THE UNIONS
(INCLUDING ITF) AND BY SHIPOWNERS. FOC ACCUSATIONS CAN BE AVOIDED
BY:
(A) PROVIDING A CLOSE LINK BETWEEN THE REGISTER AND THE SHIP THROUGH REQUIRING MANAGEMENT AND CONTROL OF THE SHIP TO BE FROM HONG KONG. THE LINK IS FOR THE PURPOSES OF ENFORCING COMPL PANCE WITH SAFETY AND OTHER REQUIREMENTS AND IS, INDEED, A CONSIDERABLE
/IMPROVEMENT.
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