TNAG-0420-FCO40-466-Registration-of-merchant-shipping-in-Hong-Kong-1973 — Page 128

HONG KONG REGISTER

NOTE OF A MEETING WITH THE CHAMBER OF SHIPPING AND BRITISH SHIPPING FEDERATION: 17 JULY 1973

Mr Archer and Mr Standen of Marine Division, saw Mr Cotton and Admiral Graham, of the Chamber of Shipping, and

Mr Rice-Oxley, of the British Shipping Federation, to discuss Mr Archer's letter of 21 June 1973 on the latest proposals for a separate Hong Kong Register of Shipping.

Mr Cotton said that the new proposals went some way to meeting the points which had concerned the Chamber and Federation. The Chamber appreciated that foreign companies would not be permitted to register ships in Hong Kong immediately and take advantage of any more flexible regime, but felt that it was important that UK shipowners should be permitted to take advantage of the new arrangements if they wished. Hong Kong owners could register in the UK and it was an undesirable restriction that UK ship- owners should not have the corresponding advantage. Mr Rice-Oxley emphasised that serious disadvantage would be suffered by UK shipowners competing with other Red Ensign ships registered in Hong Kong and paying non-European rates.

Mr Archer replied that the new proposals had been specially designed to take account of the peculiar difficulties of Hong Kong: they had not been intended to make Hong Kong attractive to overseas shipowners, whether UK or foreign. He did not agree that if Hong Kong shipowners transferred tonnage from flags of convenience to Hong Kong this would necessarily present UK shipowners with added competition. In some ways,

In some ways, since safety standards would be higher, the competition would be less. Mr Rice-Oxley replied that in some instances ships which had been forced to pay ITF rates because they were registered under flags of convenience would actually gain an advantage by trans- ferring to Hong Kong registry and paying Hong Kong rates.

Both Mr Cotton and Mr Rice-Oxley emphasised the significance which they attached to UK shipowners being allowed to take advantage of any Hong Kong register established under the new proposals. On safety equipment, Mr Archer assured the visitors, in response to a question by Mr Cotton, that equipment approved in Hong Kong under the new proposals would have the same status, as far as UK-registered ships were concerned, as equipment approved in the UK. Mr Cotton said that this would be of great

assistance.

Mr Rice-Oxley said that the fact that under the new proposals the Masters and, in many cases, First Officers, of ships would have to be British could only exacerbate the existing shortage of British deck officers. The effect on existing British ships would be felt at Second Officer level mainly. Mr Archer replied that the great majority of Mr Pao's fleet already employed British Masters and First Officers, which would lessen the likelihood of a drain from other British ships, It was agreed

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