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VISIT OF MR Y K PAO: 11 FEBRUARY 1976
BRIEF FOR SECRETARY OF STATE (TRADE)
10 FEST
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It is not known why Mr Pao wishes to all upon the Secretary of State: Mr Pao's office in London understands it to be simply a courtesy call. The Secretary of State will recall meeting Mr Pao on previous occasions, the last being when they dined together at Government House in Hong Kong in September 1975. Mr Pao received a CBE in the New Year's Honours.
Mr Pao's interests and those of the Department coincide in two main areas: Mr Pao's control of one of the world's largest shipping groups and his position as director of the Hong Kong Mass Transit Corporation.
SHIPPING
On the occasion of Mr Pao's last visit to the Secretary of State in March 1975 Mr Archer prepared a brief which remains substan- tially valid. A copy is at Annex. Mr Archer's minute of The 23 January brought this up to date in most respects. World-Wide fleet now consists of 142 ships totalling 14 million tons deadweight and deliveries over the next twelve months will raise it to 162 ships totalling 18 million tons deadweight. There still appears to be no sign that world-Wide is suffering as is most of world shipping.
On the main question of interest to Mr Pao, the Hong Kong register and associated relaxation of manning standards the Government's position is not changed. Ministers have not taken a view on whether a separate register should be established and whether ships' officers' certificates issued, or claimed to be
The UK issued, by certain Asian states should be accepted.
In the seafaring unions are strongly opposed to the idea. circumstance the Secretary of State will wish to be non-committal if the matter is raised.
Since Mr Pao is aware that the Government is not likely at present to give way on the Hong Kong issue it is just possible that he may ask about the position of Bermuda. The holding company of World-Wide Shipping is registered in Bermuıda and Mr Pao has a residence there. The Bermudian Government has for some time been trying to secure UK Government approval not of a separate register but to a proposal to allow ships register- ed in Bermuda to sail with officers holding foreign certificates
Bermuda had of competency equivalent to British certificates.
in mind the certificates of NW European maritime nations rather than the less verifiable variety envisaged in the Hong Kong case. Opposition by the UK unions and the attitude of UK shipowners have contributed to the Department's view that we cannot for the time being agree to the Bermudian proposals and we have recently heard that Bermuda will not be pursuing them with the vigour shown in the past.
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