TNAG-0419-FCO40-465-Registration-of-merchant-shipping-in-Hong-Kong-1973 — Page 42

From: The Private Secretary to the Minister for Aerospace & Shipping

COM

DEPARTMENT OF TRADE AND INDUSTRY 1 Victoria Street London SW1H OET

01-222 7877

/ May, 1973

4

Lord Bridges,

10 Downing Street,

S.W.1.

Dear Bridges,

NICK 21/2

PROPOSED HONG KONG REGISTER OF SHIPPING

You asked in your letter of March 20th for a report of the outcome of my Minister's discussions on this subject in Hong Kong. I am writing to report these and also his subsequent consultations with both sides of the British Shipping Industry.

The Minister had useful discussions in Hong Kong both with the Governor and with the leading Hong Kong shipowners about the draft terms (which the Prime Minister saw) on which the setting up of a separate Hong Kong register of shipping might be approved. The shipowners, supported by the Governor, made clear that the terms were not acceptable as drafted and the Minister discussed areas of modification with them at longth. The Governor agreed to prepare a document showing the tonnage that would be transferred to the new Register in a range of different circumstances that might result from the negotiations. We are awaiting this.

The Minister also had separate talks in the week before Easter with representatives of both sides of the UK shipping industry. They both expressed serious concern about certain aspects of the draft proposals, stressing in particular that the setting up of a separate Hong Kong register was likely to be generally regarded as evidence that ships flying the Red Ensign would have different standards of safety and manning, depending on whether they were registered in Hong Kong or in the UK; and that the Hong Kong standards would be assumed to be inferior. The UK shipowners also raised a number of detailed points which the Minister undertook to consider.

We have just heard from Hong Kong that they are conducting a further round of discussions with their shipowners in the light of the talks in Hong Kong, and have asked to delay a formal reply to our consultative document until early June. We have asked them to accelerate this programme if at all possible.

/However