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During the year, the government, through the Marine Department, Customs and Excise Department, and the Marine Police, introduced further measures to combat the increasing number of smuggling incidents involving pleasure vessels exporting goods to China. As a direct result of the measures taken, this illegal activity has been substantially reduced.

Hong Kong's economic success has resulted in constant growth of the territory's international trade. This has led to the large increase in the size and number of ships visiting the port, and the consequential demand for accurate and up-to-date hydrographic surveying and charting services. The Marine Department intends to establish its own hydrographic office to perform these functions in order to satisfy the identified needs of port users.

By international agreement, the Marine Department is the Maritime Search and Rescue Co-ordinator for the area of the South China Sea north of latitude 10°N and west of longitude 120°E, excluding the immediate coastal waters of neighbouring states. The Maritime Rescue Co-ordination Centre is manned continuously and monitors all the various emergency communications channels. A full search and rescue mission can be activated and run by fully-trained staff. Suitably equipped search and rescue vessels and aircraft are available and additional assistance can be obtained from other rescue co-ordination centres in the region. Radio communications equipment costing $20 million has been installed and is operated in the centre to facilitate full implementation of the Global Maritime Distress and Safety System.

Hong Kong is a prominent centre for ship owning, ship financing and ship management activities. Most local ship owners and connected businesses are represented by the Hong Kong Shipowners' Association, whose members control a significant percentage of the world's tonnage. At the end of 1992, the association members' fleet stood at 1223 ocean-going vessels totalling 71.2 million deadweight tonnes or 40.1 million gross registered tonnage, of which 137 vessels representing 12.2 per cent of the gross registered tonnage, were registered in Hong Kong. The association is either a member of or works closely with all significant international maritime bodies to contribute and share in major developments concerning merchant shipping worldwide.

Statutory surveys of all Hong Kong-registered vessels are undertaken worldwide by Marine Department surveyors or authorised classification societies for the issue of certificates. These accord with international conventions relating to maritime safety, pollution prevention and crew accommodation promulgated by the International Maritime Organisation and the International Labour Organisation. United Kingdom and foreign ships visiting Hong Kong are also surveyed by Marine Department on request by their administrations.

During 1992, a total of 1 176 ships visiting the Port of Hong Kong were subjected to inspection to enforce international conventions. This represented about 25 per cent of ocean-going ships (which exclude river-trade coastal ships) which visited Hong Kong inspected under the International Convention on Standards of Training, Certification and Watchkeeping for Seafarers, and two per cent inspected under the International Convention for the Safety of Life at Sea and the International Convention for the Prevention of Pollution from Ships. Of this second group about 70 per cent required deficiencies to be made good before the ship could sail from Hong Kong.

Hong Kong has one of the world's largest fleets of sophisticated high speed pas- senger craft, comprising jetfoils, hydrofoils, sidewall hovercraft and catamarans. These

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