TNAG-0421-FCO40-467-Registration-of-merchant-shipping-in-Hong-Kong-1973 — Page 19

Report of the Bermuda Constitutional Conference, 1966,

where it is recorded that the U.K. Covernment would

consider the inclusion of a representative of the

Government of Bermuda in any U.K. Delegation attending

international discussions about civil aviation, shipping

or finance in which the interests of Bermuda were

materially involved). If ships under Bermudian registry

are not equipped with the necessary international con-

vention certificates they can incur serious delays and

serious expenses in ports round the world.

7.

Restrictions on Transfer and Mortgage

Under the Ships, and Aircraft (Transfer Restriction)'

Act, 1939 Her Majesty's Government has power to restrict

the sale and transfer of ships under certain circum-

stances. In cases where companies whose ultimate

ownership is not British (e.g. United States) wish to

register their ships under Bermuda flag the existence of

such a provision may be a deterrent.

The Government of Bermuda considers that it may be

desirable to work out arrangements (if such do not

already exist) whereby this power would not be exercised

by Her Majesty's Government in the case of ships whose

ultimate ownership lies in countries with whom the U.K.

has mutual defence arrangements.