TNAG-0959-FCO40-1178-Shipping-in-Hong-Kong-1982 — Page 60

requirement. The main argument for the proposal was the alleged shortage

of British officers which was one reason why Hong Kong shipowners resort

to flag of convenience registration to such a large extent (Hong Kong

owners are said to "beneficially own" 42.4 million but under the major

flags of convenience, compared with a total of 1.4 million grt currently

registered in Hong Kong, not all of it necessarily beneficially owned there:

see Annex A for details of Hong Kong's involvement in flags of convenience).

Sir Y K Pao's approach was made to HMG at the highest level just before the

1974 General Election and with the change of Government the pressures

subsided. In December however the Chairman of the Hong Kong Shipowners

Association raised the matter again against the background of increasing

international pressure against flags of convenience represented by the

ITF campaign and by current discussions in UNCTAD. And Sir Y K Pao has

suggested that the Hong Kong Government should set up a special expert

committee to study the question in depth. It is therefore appropriate

to consider once again the feasibility and desirability of a separate

Hong Kong register. (Note 2).

Feasibility

4. So long as Hong Kong remains a dependent territory there can be no

question of a separate Hong Kong flag or even of a defaced Red Ensign.

There is already a precedent (in the setting up of a separate Bermudian

register) for a variation in conditions of registration under the

British flag (not that this is being sought here). If a variation in the

pre-conditions of registration under the British flag can be accepted

there is presumably no reason why there cannot be a variation in one of the

consequences of registration (the British officer requirement) especially if,

as Sir Y K Pao is now understood to be suggesting, British certification (though not British nationality) were still to be required. From a technical

point of view the main question would appear to be whether Hong Kong has the resources to cope with the much larger number of vessels which will

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