of competency to foreign officers serving in senior posts in Hong Kong registered
ships would almost certainly lead to vigorous representations from those
associations as being a retrograde step likely to prove inimical to the
interests of British certificated officers,
Either course of action would need the approval of HMIC by Order in Council and,
in accordance with normal practice, both sides of the shipping industry
would be informed in advance of the action it was proposed to take.
For chese reasons it would seem preferable to defer possible changes in respect
of certification of senior officers serving in Hong Kong registered ships at
least until some progress is made in consulting the UK shipping industry
on the possible carriage of foreigners, in particular from EEC countries,
in senior posts in UK registered ships.
!
ECONOMIC BENEFIT
It is difficult to assess the economic benefit to Hong Kong of the creation
of a separate shipping register. If Hong Kong standards remained as high as
they are at present, then the Colony, would be unlikely to attract much shipping
currently registered elsewhere, except, evidently, for Mr Pao's ships.
Registration fees are at present low and paid on a once-only basis, Running
costs of Mr Pao's ships such as port charges and insurance are nearly all paid
outside Hong Kong. The profits from Mr Pao's shipping operations can enter
the colony whether or not his ships are registered there.
Because tax-free
flags of convenience exist, shipowners generally, through, for example, um of
grants and investment incentives, avoid paying company tax. It seems unlikely
that Mr Pao or other Hong Kong shipowners would transfer their ships to
Hong Kong resident companies if this involved a significant tax on profits
either now or in the future.
It seems unlikely, therefore, that Hong Kong would derive signficant
No comments yet.
Private notes are available after approval.