TNAG-1514-FCO40-2072-Shipping-in-Hong-Kong-1986 — Page 106

*IMPROVEMENT OVER THE LINK WHICH OPERATES UNDER THE PRESENT

ARRANGEMENTS. IT IS ENVISAGED THAT THE COMPANY OR PERSON MANAGING

AND CONTROLLING THE SHIP WILL BE RESPONSIBLE ALONG WITH THE OWNER

OF THE SHIP FOR COMPLYING WITH SAFETY STANDARDS ETC.

(B) MAINTAINING AND ENFORCING CONSTRUCTION AND SAFETY STANDARDS OF

SHIPS AND OF STANDARDS FOR CREWS.

(+) YES. THE POINT IS THAT BOTH THE HKSOA AND OURSELVES MUST AIM

TO PRODUCE A FORMULA WHICH IS CAPABLE OF WORKING WELL BOTH BEFORE

AND AFTER 1997. THIS FUNDAMENTAL POINTS OF CRUCIAL IMPORTANCE.

THE FACTS THAT THE EXISTING PRINCIPAL PLACE OF BUSINESS

REQUIRMENT IS DIFFICULT TO ENFORCE. INDEED, EVEN UNDER THE PRESENT SYSTEM, THERE ARE MANY BRITISH REGISTERED SHIPS WHICH ARE NOT BENEFICIALLY OWNED IN THE UK OR #TS DEPENDENCIES. THE MANAGEMENT AND CONTROL OF THE SHIP REQUIRMENT WOULD ENABLE SHIPS MANAGED AND CONTROLLED FROM HONG KONG TO BE REGISTERED HERE, NOTWITHSTANDING THAT ACTUAL PRINCIPAL PLACE OF BUSINESS OF THE OWNING COMPANY

MAY BE ELSEWHERE (AS OPPOSED TO THE LOCATION OF THE INCORPORATED COMPANY WHICH MUST BE IN HONG KONG). THE CRITERIA FOR OWNERSHIP FOR A BRITISH SHIP REGISTERED IN HONG KONG AFTER THE ESTABLISHMENT OF THE HONG KONG REGISTER WILL NEVITABLY BE DIFFERENT FROM THE PRESENT OF FUTURE CRITERIA FOR REGISTERING ABRITISH SHIP ELSEWHERE.

IT IS THEREFORE DIFFICULT TO SEE THE LOGIC IN SUGGESTING THAT THE NEW CRITERIA BE CONSISTENT WITH THE EXISTING CRITERIA. WE AGREE THAT THERE MAY BE TECHNICAL PROBLEMS BUT THE DETAILED POLICY CAN BE DEVELOPED IN THE WORKING PARTY AND LOCAL LEGISLATION ENACTED TO REFLECT THIS POLICY. THE POLITICAL PROBLEMS TO WHICH YOU REFER ARE PRESUMABLY THOSE OF H.M.G. NN THAT THE PROVISIONS OF THE

NEW REGISTER AND THE MANNER IN WHICH WE DESCRIBE SHIPS ON THIS NEW REGISTER NAY BE INCONSISTENT WITH THE DEFINITION OF BRITISH SHIP IN THE MERCHANT SHIPPING ACT 1894 OR IN THE PROPOSED AMENDMENTS. HOWEVER, IT SHOULD BE REMEMBERED THAT AN ADVANTAGE OF THE REVISED PROPOSALS IS THAT SHIPS OWNED BY COMPANIES WHOSE PRINCIPAL PLACE OF BUSINESS IS NOW ELSEWHERE E.G. IN THE UK OR EVEN CHINA, WOULD BE ABLE TO REGISTER SHIPS IN HONG KONG BOTH BEFORE AND AFTER 1997, PROVIDED THAT THE SHIPS ARE MANAGED AND CONTROLLED FROM HONG KONG. YOU WILL RECALL THAT GCBS ARGUED

STRONGLY IN FAVOUR OF THIS VERY POINT.

-

(PRN) WE HAVE RETAINED THE CONCEPT OF ORDINARILY RESIDENT FOR

INDIVIDUAL OWNERSHIP.

(HIV) WE HAVE NOT YET DETERMINED A PRECISE DEFINITION OF MANAGEMENT AND CONTROL. THIS WILL BE FOR THE WORKING PARTY TO CONSIDER FURTHER. AT IS, HOWEVER, ENVISAGED THAT IT WILL BE TIGHT AND WOULD INCORPORATE THE CONCEPT THAT HONG KONG SHOULD BE THE PLACE FROM

-2-

/ WHICH