Mr. Riordan
kiorda
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Telegram to issue
23/x.
SHIPPING REGISTER: FLAGGING OBLIGATIONS
Reference
42 25/0
1. This is a nasty problem. Hong Kong believe that ships on the Hong Kong register breach their flagging obligations under the 1894 Merchant Shipping Act by meeting their flagging obligations under the 1990 Merchant Shipping (Registration) Ordinance when they are sailing on the high seas or in UK or other DT waters. This because of the "two pennant arrangement" whereby Hong Kong ships fly the red ensign and the Hong Kong flag, and which breaches UK regulations.
2.
Hong Kong set out in telno 1010 various ways in which this anomaly might be resolved. The problem is created by the extra-territorial effect of UK legislation: there is thus no way in which Hong Kong can legislate to solve it. Their preferred option was to get the Secretary of state for Transport to sign an annual exemption in respect of all the Hong Kong registered ships under the 1906 Merchant Shipping Act. This would then have to be laid before parliament. DTP have refused to support this proposal and have identified a legal obstacle with which Shelagh Brooks agrees.
3.
I think, therefore, that we need to pursue another of Hong Kong's options. Shelagh Brooks recommends an approach to the Admiralty (para 5 of Hong Kong telno 1010). But I think we should first send the attached telegram to Hong Kong to ensure that this is how they wish us to proceed.
4. Grateful for your news.
Camisanth.
CJ Sainty
CODE 18-77
20 September 1991
CAMAJF
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