According to Mr Pao (as recorded at a meeting with the Minister on 12 December 1972) these fees would amount in the case of a large tanker to an initial sum of US 100,000 plus a continuing sum of US 10,000 pa. But against this must be offset the very substantial increase in Government expenditure to ensure that high standards of safety and acceptable conditions of service are maintained on the greatly increased tornage on the new register. The Department with a staff of about 300 Marine Surveyors is fully stretched in maintaining standards on UK ships and running examinations for the issue of Certificates of Competency. The Hong Kong Government zhizhxxtxxxZEEXXXXXX vinneXXXWONDIKEDXX- alexantxXÊXX must incur heavy expenditure in re-organising its administrative and survey arrangements if it is in fact effectively to maintain standards. Moreover the Department will be expected to assist the Hong Kong Government by seconding some of its Surveyors for service in Hong Kong for long periods. This will constitute a formidable task and registration fees would have to be high, probably much higher than the Governor or Mr Pao envisages, to cover the cost.
ATTITUDE OF UNITED KINGDOM SHIPPING INDUSTRY
This
5. In February last when the Department discussed informally with representatives of both sides of the UK shipping industry (at separate meetings) the implications of possible acceptance of the conditions then suggested by Hong Kong, both sides were firmly of the opinion that if the changes proposed were made, Hong Kong would be labelled as another flag of convenience. would inevitably affect the attitude of other countries and especially foreign unions towards all ships flying the Red Ensign. The COS took the point that any concessions that might be granted in respect of certification and manning standards to ships on a separate Hong Kong register should be extended to UK registered ships otherwise one must expect to be faced with a flight from the UK register to the Hong Kong register. The seafarers' repre- sentatives were not only cpposed to the suggested changes which would in their view result in reduced safety standards but they also believed that it was unlikely that the wage rates payable by Hong Kong owners for ships registered in Hong Kong would measure up to the minimum standards approved by the ILO. They also emphasised that if HMG were to relax standards for Hong Kong ships they would not only come under very strong criticism from the UK unions but they would have to face criticisms that would be directed at HMG an international forums such as IMCO, ILO and 07CD as well as from the ITWF. A copy of a recent article by Mr Slater (MNAOA) published in the Association's journal is at Annex D.
6.
Although the conditions now proposed by the Department as set out in Annex A do not go as far as thoso canvassed by the Hong Kong Government and Hong Kong shipowners, the UK shipping industry is likely to be worried by the possible implications of having differing conditions applying to ships flying the Red sign depending on whether they are registered in Hong Kong or in the
UK.
The shipowners may fear that other countries, and in parti- cular unions affiliated to the ITF in those countries, will assume that the standards of all ships flying the Red Ensign have fallen; this could give rise to welcome industrial action against UK ships in certain foreign ports. They may also fear being placed
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