3.1.4

4

The establishment of a distinct shipping policy for Hong Kong and more active Hong Kong representation in IMO and other major shipping policy making bodies.

3.1.5 The development and establishment of port services, particularly in the field of certification, survey, and technical services, to match the needs of an expanding port, increasing trade and a developing fleet.

3.2

These objectives,

together with the interests of other constituent parts of the shipping industry, have been taken into account in the drafting of this consultative document.

4. Flags of Convenience (FOC)

4.1

It is of prime importance that the standards of a new register should be such that Hong Kong should not become nor be perceived as a Flag of Convenience (FOC). The proposals in this paper are designed to go as far as possible to prevent the Hong Kong register from being tarred with the FOC brush.

4.2

It is envisaged that FOC's will continue to operate in the foreseeable future, although there are discussions taking place in UNCTAD at present which might curtail or modify the operation of open registers. It is important that in formulating any new Hong Kong Register, the international sentiments regarding the proposed features of the register should be taken into account.

5.

The Role of the Flag State

5.1

Registry of a merchant ship entitles the ship to fly the flag of the registry state. The Certificate of Registry is a document which attests the nationality of the vessel and in many countries this certificate is entitled "Certificate of Vessel's Nationality". The duties of the flag state are contained in Article V of the High Seas Convention 1958, which extends to Hong Kong, and are set out in more detail in Article 94 of the UN Convention on the Law of the Sea 1982 which provides as follows :

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