43

We dismissed (d) as immediately labelling the register

as a flag of convenience even though the prescribed

parameters could determine otherwise. A formidable

regulatory and inspection system would, in any case,

probably be required. We do not discuss it further in

this paper.

5.8.

As regards (a), this is the system most widely

used throughout the world. It is the existing Hong Kong

system and has the following advantages:-

$

(i) a more efficient and effective means of

running the register (i.e. the HKSOA's

objective) will be met by legislative

changes already implicit in the proposed

MSA (or alternatively in the new Hong

Kong legislation that will be required in

any case for the establishment of the

register);

(ii) there is no evidence that there are

fundamental flaws in the existing system

of administration;

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