TNAG-0421-FCO40-467-Registration-of-merchant-shipping-in-Hong-Kong-1973 — Page 87

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G.F. 323

CONFIDENTIAL

COMPANIES OWNING SHIPS FOR THE PROPOSED HONG KONG REGISTER

1.

2.

3.

As discussed at a meeting with shipowners on 1st November, it might be necees- sary to define quite closely those companies which would in the first instance qualify to place their ships on the proposed Hong Kong register. Ships owned by foreign interests might be excluded but it would be the intention that bona fide Hong Kong shipowners would not be hampered by requirements intended to achieve this.

Any definition would have to be drafted by legal experts when a final decision has been taken on the issue of access to the register. In the meantime, however, the following list may serve to give an indication of some possible ways in which access might be regulated :

a possibility

(a) place of registration of owning company:

would be the exclusion of companies not registered in Hong Kong:

•

(b) nationality of directors of owing company: a require-

ment could specify that only a company the majority of whose directors were qualifying persons would be admitted; qualifying persons' could be defined in this context by reference to Hong Kong Belongers Chinese Residents, Resident U.K. Belongers. U.K. Belongers as necessary.

(c) nationality of beneficial ownership of owning company:

the rules for access could admit only those companies which were at least 50% beneficially owned by qualifying persons 'qualifying persons' could again be defined by reference to Hong Kong Belongers, Chinese Residents, Resident U.K. Belongers U.K. Belongers as necessary.

(d) nationality of control of owning company: if a company

was controlled by another company which did not qualify under the rules for access, then that company itself might not qualify.

In order to assist in the formation of possible requirements which would not hinder bona fide Hong Kong Shipowners' operations, it would be helpful if they would outline in discussion the general features of any shipowning companies which they might wish to use as owners of ships for the proposed Hong Kong register and in particular if they would indicate the specific nature of any difficulties which any of the above possible requirements would give rise to in the case of their particular companies.

Department of Trade and Industry Study Team

Hong Kong.

November 1973.