007
6C230 12.08*
264084 MARBOT G KEY+80273380+HX04
7380 GOVHK HX
4084 MARBOT G
73360 GOVHK HX
FROM DEPT OF TRANSPORT MARINE DIRECTORATE LONDON
SRL NO 0026 OF 07/01/26
TO MR HIGGINSON HONG KONG GOVERNMENT SECRETARIAT
YOUR ALLOT 1 OF 3 JAN
RAR
will prom pp
2
(all '25 like)
I LOOK FORWARD TO RECEIVING REVISED CHAPTER 4 AS SOON AS POSSIBLE. IT MAY ANSWER SOME QUESTIONS WHICH SPRING TO MIND IN THE CONTEXT OF YOUR REVERSION TO ORIGINAL OWNERSHIP PROPOSALS IN THE CONSULTATIVE DOCUMENT. BUT IN CASE NOT OR IN CASE REVISED CHAPTER DOES NOT REACH US BEFORE FRIDAY 10 JAN (WHEN WE AND FCO WILL BE DISCUSSING THE PROPOSAL PAPERS) IT MAY BE HELPFUL TO MENTION THEM NOW IN ORDER TO TRY TO KEEP TO THE AGREED TIMETABLE.
I ASSUME INCIDENTALLY THAT LINKAGE BETWEEN YOUR (A) AND (B) IS THAT HKSOA RESERVATIONS ABOUT POSSIBLE FUTURE TAX POSITION MEAN THAT ITS MEMBERS INSIST ON AVOIDING POTENTIAL TAX LIABILITY BY HAVING THEIR PRINCIPAL PLACES OF BUSINESS FOR SHIP OWNING COMPANIES ELSEWHERE THAN IN HONG KONG. IN ANY EVENT
(1) IS THIS CHANGE NOT LIKELY TO ATTRACT THE VERY CRITICISM WHICH HKSOA HAS BEEN AT SUCH PAINS TO AVOID NAMELY THAT THE PROPOSED NEW REGISTER HAS ATTRIBUTES NORMALLY ASSOCIATED WITH AN FOC?
(11) DOES HKSOA APPRECIATE THAT OWNERSHIP CRITERIA IN PROPOSAL PAPERS ENSURE THAT A HONG KONG SHIP IN COMPANY OWNERSHIP IS ALWAYS A BRITISH SHIP CONSONANT WITH THE CURRENT AND ANY LIKELY FUTURE FORMULATION APPLYING TO BRITISH SHIPS GENERALLY WHEREAS THE NEW CRITERIA MAY RAISE DIFFICULT TECHNICAL AND POLITICAL PROBLEMS?
(111) ARE SHIPS IN INDIVIDUAL OWNERSHIP STILL SUBJECT TO THE ORDINARILY RESIDENT QUALIFICATION IN THE PROPOSAL PAPER OR HAVE YOU REVERTED TO RIGHT OF ABODE IN CONSULTATION PAPER TOO?
(IV) WHAT IS MEANT BY QUOTE MANAGEMENT AND CONTROL OF THE SHIP UNQUOTE IN 7.2.1. OF CONSULTATIVE PAPER? AS POINTED OUT EARLIER THE PLACE OF CENTRAL MANAGEMENT AND CONTROL OF A COMPANY MEANS TO TAX ON AUTHORITIES ETC SOMETHING MORE SUBSTANTIAL THAN ITS PRINCIPAL PLACE OF BUSINESS. IN VIEW OF (B) IN YOUR ALLOT 1 ASSUME THAT HKSOA INTEND THAT THE TERM AS APPLIED TO THE SHIP IS TO MEAN SOMETHING LESS, BUT WHAT?
(V) IN BOTH CONSULTATIVE PAPER AND PROPOSAL PAPER THE TERM QUOTE LEGALLY ACCOUNTABLE REPRESENTATIVE UNQUOTE IS STILL PREFERRED TO QUOTE REPRESENTATIVE PERSON UNQUOTE TO US THE TERM HAS SUCH OBVIOUS KAMIKAZE CONNECTIONS THAT WE CANNOT SEE THAT THERE WILL BE ANY TAKERS FOR THE JOB BY INDIVIDUALS OR COMPANIES OF SUBSTANCE. IF THE LEGALLY ACCOUNTABLE REPRESENTATIVE IS TO BE A BRASS PLATE O DOES THIS NOT ONCE AGAIN RAISE SHADES OF AN FOC?
REGARDS
O'SHEA
DTP/LONDON
HKIL 175 L
RECEIVED IN REGISTRY
ONLY
NNNN
73380 GOVHK HY
DE
INDEX
C7 JAN1986
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