TNAG-0510-FCO40-575-Registration-of-merchant-shipping-in-Hong-Kong-1974 — Page 89

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and Panamanian) to Hong Kong. His professed reasons

were patriotism. The Prime Minister instructed the

DTI offici to look into the question.

4.

The proposal was warmly welcomed by the Hong Kong

Government who had already been giving some thought to

this question. They too saw prestige in enlarging the

Hong Kong register and did not like the fact that

virtually the entire Hong Kong owned fleet should be

registered overseas. The establishment of a Hong Long

Register would also satisfy some of Hong Kong's desire

for greater control over her own affairs.

It is very

unlikely that that a Hong Kong Register would bring any

direct financial advantage as, in order to be

competitive, registration fees will need to be minimal

and the cost of maintaining a register (supervisors, examination centres etc.) may well or a deficit.

However, there will be economic advantage not only in

the prestige but also in the ancilliary services which

can be supplied by Hong Kong manufacturers.

enfail

5. The DTI have now been looking into the matter for

about 18 months.

Line to Take

6.

Mr Blaker may assure Mr Y K Pab

of

FCO support

or the establishment of a separate Hong Kong Register.

Unless it is clear that the Governor has taken

Mr Y K Pab into his confidence and shown him the draft

DII report it will probably be best not to be drawn intc

discussion of the details of the current proposals.

Mr Blaker may like to reaffirm that the DTI are looking

at the proposal favourably but need to resolve certain

/difficulties

(17865) Dd.145178 400m 5/73 G.W.B.Ltd. Gp.863

NOTHING TO BE WRITTEN IN THIS MARGIN

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CONFIDENTIAL