5

repair costs in the region were reasonable.

Fourthly, there was easy access

to flags of convenience with their low registration fees and tax advantages.

at the same time there was an urgent demand for ships to move the

growing exports and imports of the region. heanwhile, the economic prosperity

of the region created capital, sc that when the incurance of old secondhand

ships became prohibitively expensive in the mid-1960s, as underwriters

suffered heavy losses on them, shipowners had access to the funds necessary to

buy modern vessels.

This development coincided with the expansion of Japan's highly

efficient shipbuilding industry. Shipowners of the region were only too ready

to take full advantage of the shikumisen deals, too well known to all of

you to need describing here.

SEIPOWNING IN HONG KONG

You would expect me to say that Hong Kong has been outstanding in

So much so that taking full advantage of these developments; and I shall! your Chairman, who started his shipowning career in the mid-1950s with a Becondhand freighter of 7 800 tons now controls the largest commercial fleet

in the world adding up to 20 million tons. Shipowners with Long Kong connections now own or control as much tonnage as the United Kingdom, about

45 million tons dead weight.

The reasons for Hong Kong's success lie in a combination of

most of the factors leading to the success of the region as a whole both

in economic growth and in the developwent of shipping.

The determination

of the people of Hong Kong to survive against all odds was the foundation of the rapid economic growth achieved since the early 1950s. The Government assisted by adopting policies which we believed were suited to dong Kong's

/circumstances.

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