TNAG-0323-FCO40-359-Legislation-for-merchant-shipping-registered-in-Hong-Kong-1971 — Page 27

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7 m. 4mi

(b)

(c)

exemptions apparently on an indefinite basis

would soon become common knowledge and

inevitably result in complaint to the

Merchant Navy and Airline Officers' Associa-

tion (described by DTI as a "very tough

Union").

Nationality requirements being varied by

invoking Section 735(1) of the Merchant

Shipping Act 1894. DTI see no advantage to

HMG in Hong Kong remaining under overall

British Registry and operating on different

or lower standards They describe British

Registry and different/lower standards as

"incompatible" and this leads to the third

suggestion

that Hong Kong meet Mr Pao's requirements by

establishing a register of shipping

independent of the Central British Registry

in Cardiff.

(i) Whether this would be acceptable to

Mr Pao is not known. He would forego any

benefits (eg Consular Service; liaison in

Commonwealth ports) available to British

registered ships but possibly reap gains

(eg tax haven facilities, cheaper insurance,

payment of lower salaries) about which we can

only speculate.

(ii) DTI see "no material benefit" to Hong

Kong except the marginal financial one of

about £98,000 in registration fees.

Opening a separate register might even prove

a disadvantage by resulting in the loss of

employment for Officers certificated in Hong

Kong.

-3-

/(iii)