CONFIDENTIAL
NOTE OF MEETING HELD IN THE DEPARTMENT OF TRADE ON 23 AUGUST AT 2.30 PM
1. I attended the meeting in the Department of Trade (Parliament Square House) yesterday afternoon; Mr Janvrin, Hong Kong Department, accompanied me. The Department of Trade representatives were Mr Frost, Head of S.P. Division, Mr Daniels and Mr Boon.
2. Mr Fletcher explained that he had had a useful discussion with Captain Suchlick, DÑOT, Ministry of Defence, on the naval control of shipping problems which he was looking into. He said he was not clear about the relationship between the Hong Kong Shipping Advisory Committee and the similar committees existing in the UK.
3. Mr Frost explained the functions of the three committees which operated in the shipping field here; the SDAC was a MOD committee to keep MOD in touch with the shipping people in the UK with regard . to naval control of shipping developments; the new JMSDC was a
committee run by the Department of Trade to keep in touch with the British Council of Shipping and shipping interests generally, with regard to the civil side of planning, e.g. UKSRs; and the third committee was an ad hoc inter-departmental committee plus shipping interests called together to deal with emergencies arising from localised wars, e.g. Korea and the Middle East conflict.
It was agreed that the HKSAD appeared to be an amalgam of all three.
4. Mr Frost also explained the position of the UK in relation to NATO planning for the defence of merchant shipping and pointed out that Hong Kong, like Sydney, is an outpost of the system and not included in the specific NATO plans. He also said that shipping planning was in a very fluid state and that there was little detail he could give to Mr Fletcher which would have any relevance to any local planning he might have in mind.
5.
Mr Frost also explained how in an emergency the UK would direct British shipping and, when emergency powers were taken, would requisit- ion shipping. Notice would be served on shipping companies in this country and would apply to their ships if in Hong Kong waters. There were problems over ships flying flags of convenience but Mr Frost said there was an old legal precedent which might enable HMG to requisition such ships if they were managed by an agency, or subsidiary, in British territory. Any local shipping in Hong Kong would not be affected unless the Governor took emergency powers in Hong Kong. Mr Frost said that he did not see much need for such action.
6. Mr Fletcher then raised the question of emergency powers in war circumstances. Mr Frost explained that in a grave situation HMG would enact a Bill under which Regulations would be made giving the Secretary of State wide powers over ships, ports and shipping personnel including seamen. I explained that no legislation existed in peace-time and it was envisaged that guidance would be given to Governors if HMG took such powers. It was envisaged that the Bill
CONFIDENTIAL
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