TNAG-0510-FCO40-575-Registration-of-merchant-shipping-in-Hong-Kong-1974 — Page 74

CODE 18-77

MR LANE - PS/MINISTER A&S

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Mr Hubback - Dep Sec Mr Brigstocke - SP Mr Marchant SBP Mr Harris - CRE2 Mr Wilkins MAR 1 Mr Standen - MAR 4

Mr A Stuart

FCO

The letter, opposite, from Mr Slater of the MNAOA, records the condemnation of the proposed separate Hong Kong register by the International Transport Workers Federation. This is a significant intervention and has been made on the grounds that the unions believe that the setting up of such a register would inevitably lead to a deterioration in safety standards.

2. The ITF propose to treat ships transferred from traditional maritime countries' registers (including the UK) to a Hong Kong register as "flag of convenience" ships. They also propose to continue to treat ships transferred to Hong Kong from flags of convenience as ships operating under flags of convenience unless they meet stringent standards. There may be some merit in these specific proposals: we would not want the Hong Kong register to attract quantities of shipping from the registers of traditional maritime countries and we intend that it should attract only the shipping of bona fide Hong Kong shipowners from flags of convenience.

3. The stringent conditions laid down for Hong Kong owned ships transferring from flags of convenience might detract from the advantages Hong Kong shipowners may be hoping for as a result of the setting up of a separate register. It is likely, for example, that in laying down that "the standards of equipment and manning comply with UK standards in all respects" the unions intend that senior officers should be of British nationality and that they would not recognise our special transitional examinations for officers as valid. Moreover, the demand that rates of pay and other conditions of seafarers should be negotiated with an ITF affiliate would also have implications for Hong Kong owners: I understand that at present the ITF seeks to negotiate higher rates for crews on flag of convenience ships than for those of traditional maritime countries and it is possible that the owners have been hoping to pay lower rates than at present for Hong Kong ships.

4.

We are, of course, committed to consulting both sides of the UK shipping industry when we have had a response from the Governor on our revised proposals for a Hong Kong register. It might well be sensible for me to discuss the proposals personally with Mr Slater, when the time comes, in an effort to stress the conditions that we will be laying down to maintain standards for

I think we Hong Kong ships equivalent to those for UK ships. might also let the Governor of Hong Kong know about this intervention when next we communicate with him.

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