TNAG-0510-FCO40-575-Registration-of-merchant-shipping-in-Hong-Kong-1974 — Page 56

CONFIDENTIAL

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PA Zill

NOTE OF A MEETING ON THE PROPOSAL FOR A HONG KONG REGISTER OF SHIPPING IN SUNLEY HOUSE ON 20-MARCH 1974

Present:

Mr J N Archer

Mr A C Manson

Mr H J Gummer

Mr EWG Wilkins Dr J Cowley Capt E G Anderson Mrs J M Wicks

Miss CH Welch

Mr T G Harris

Mr M A Goodfellow

Mr D Marshall

MAR (in the Chair) Surveyor General SBP1 (D/Industry)

MAR 1

Study Team

MAR 1A CRE 2/3 CRE 2/3 HKIOD/FCO MAR 1A

RE:

NEXT

2+26

REE

RECEIVED IN REGISTRY No. 51

AN

5 APR 1974

HKR 2113

The meeting considered how the Hong Kong shipping register proposal should be handled in the light of recent events. A submission to the new Secretary of State for Trade would be necessary before any further progress could be made. The Governor had not yet replied to the telegram of 8 February from the last governments' Minister of Aerospace and Shipping, but he was undoubtedly aware that new Ministers would have to be consulted before the matter could be taken further. The following points were made in duscussion:-

i

Approval of Japanese Equipment

CRE raised the point made in Miss Lackey's minute of 21 February to Mr Archer concerning the approval of Japanese-manufactured safety equipment for installation on Hong Kong registered ships and, thereby, on UK registered ships. They felt it essential that there should be a D/Trade presence in Japan to supervise the approval work. This would ensure that standards were maintained, avoid public criticism that Japanese equipment was being admitted to the UK market without being tested by D/Trade surveyors, and might have a commercial advantage in improving the UK's knowledge of the Japanese marine equipment market. The idea was not far removed from the Study Team's own recommendation that D/Trade surveyors seconded to the Hong Kong Marine Dept would carry out the approval work in Japan, except that the UK would pay for the 1 or 2 D/Trade Surveyors in Japan, assisted perhaps by Hong Kong Government surveyors. It was therefore, agreed that some minor draft- ing changes to the Study Team's Report would be accepted in accordance with CRE's suggestion. Annex 2 of the Report was to be examined in case any changes were necessary there.

ii Trade Implications

SBP and CRE had been examining the question of what concessions might be extracted from the Japanese in return for the approval of their safety equipment. No advantages which could be sought for British marine equipment manufacturers were apparent except perhaps on the tariff front, an area which the BMEC had under consideration. There was some pos- sibility of obtaining concessions in the course of the Japanese annual review of their tariffs but any advantages gained would apply to all European suppliers not UK companies alone. Nevertheless, UK manufacturers of such items as steering gear and electronic equipment eg radar, fish sounders, etc regarded the Japanese market as promising and would welcome tariff concessions. Overall marine equipment exports to Japan were estimated to be worth £7m in 1972 and a five-fold increase was anticipated by 1978. these exports only £300,000 were safety equipment which were at risk. The Balance of Payments implications were, therefore, of minor importance, though certain companies would be adversely affected eg Watercraft-Viking, the lifeboat manufacturers and RFD, suppliers of life-rafts. On balance, there was a case for reducing the emphasis on the trade implications though further discussions with the BMEC would be necessary before final decisions would be taken. Discussions with the Japanese would also be necessary, these could be opened on the question of secondment of D/Trade surveyors to Japan.

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