and new ships and also because other Hong Kong
shipowners, with whom he has worked closely in these
negotiations, would find much more difficulty in
satisfying the conditions. Certainly the new tonnage
they are now offering, given two different sets of
conditions neither of which are acceptable, suggests'
that they are holding back in the hope of getting
their own way.
In my view it would be wrong to make further
concessions to secure a more favourable offer from
Hong Kong shipowners. Every move towards compromise
so far has come from our side and we have already
encountered opposition from both UK shipowners and
unions. To give way further would not only be wrong
in itself but would be bound to lead to considerable
opposition from the seafaring unions which might in
turn be reflected in international union action not
only against Hong Kong registered ships, but against
other Red Ensign ships.
The UK shipowners, who have been consulted on our
latest proposals, would be prepared to accept them
provided that they also could be allowed access to
the Hong Kong register in the initial years under the
proposed more favourable conditions. While we are
prepared to discuss this further with Hong Kong if
they decide to proceed, I doubt if we should agree
to it: it would be undesirable to run the risk of
/a flight from
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