TNAG-2308-FCO40-3345-Future-of-Hong-Kong-shipping-register-1991 — Page 185

7.

The Hong Kong Register

7.1 Principal Features

7.1.1

It is considered that as soon as possible a separate and autonomous Hong Kong register of shipping should be established and the necessary legislation enacted. This is likely to take about five years. It is envisaged that the Register should have the following features:-

7.1.2

(a)

(b)

its standards and obligations should be set out in local legislation;

it should not be, nor be regarded as, a flag of convenience;

(c) it should operate to

A D ê ê Z @

(e)

(£)

standards;

international

it should have a distinctive flag; full costs should be recovered by fees or dues;

it should allow ships to be registered and deregistered as quickly as possible with the minimum of "red-tape";

(g) it should be as attractive as possible to shipowners within the constraints of (a) (£);

The mechanics of the existing register are somewhat cumbersome and outdated and are based on the Merchant Shipping Act, 1894. This Act is now under revision. The new Act should provide guidance for the more efficient operation of the Register. This should take account of certain existing problems, for example those encountered by shipowners over mortgage

arrangements.

7.2 Ownership

7.2.1

Article 91 of the UN Convention on the Law of the Sea 1982 (see paragraph 6.1 above) requires there to be a 'genuine link between the State and the ship'. As regards Hong Kong, being at present a British port of registry, this enables such links to be very widely drawn encompassing owners resident not only in Hong Kong, but also in Britain and British dependent territories. In the case of a separate and autonomous Hong Kong register, this would be neither possible nor desirable. It is therefore envisaged that ownership of a Hong Kong ship on the new register should be limited to:-

(a)

(b)

a company incorporated in Hong Kong; or

a

person with

with the right of abode in Hong Kong.