TNAG-2308-FCO40-3345-Future-of-Hong-Kong-shipping-register-1991 — Page 278

CONFIDENTIAL

FM HONG KONG

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HKC 175/4 1990

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YOUR TELEGRAM NO. 2213: HONG KONG SHIPPING REGISTER.

1. WE BELIEVE THAT THE HONG KONG (LEGISLATIVE POWERS) ORDER 1986

DOES NOT EMPOWER US TO AMEND OR REPEAL ANY UK LAW IN SO FAR AS

THAT LAW APPLIES IN RESPECT OF THE UK AND ANYWHERE ELSE IN HER MAJESTY'S DOMINIONS COR INDEED ON THE HIGH SEAS) OTHER THAN IN

RESPECT OF HONG KONG. OUR LEGAL ADVISERS CONSIDER THAT OUR REPEAL

OF SECTION 73 OF THE MERCHANT SHIPPING ACT 1894 IN SO FAR AS IT IS PART OF THE LAW OF HONG KONG CANNOT PRECLUDE THE APPLICATION OF SECTION 73 TO SHIPS ON THE NEW HONG KONG REGISTER, WHICH ARE BRITISH SHIPS FOR THE PURPOSE OF THE MERCHANT SHIPPING ACTS, WHILE THEY ARE OUTSIDE THE WATERS OF HONG KONG.

2. THIS PRESENTS SHIPS ON THE NEW HONG KONG REGISTER WITH A PROBLEM. OUTSIDE HONG KONG, BY MEETING THEIR FLAGGING OBLIGATIONS UNDER THE MERCHANT SHIPPING (REGISTRATION) ORDINANCE 1990 AS HONG KONG-REGISTERED SHIPS, THEY BREACH THEIR FLAGGING OBLIGATIONS UNDER THE 1894 ACT AS BRITISH SHIPS. THIS PROBLEM WOULD APPEAR TO AFFECT ALL 773 TRANSITIONAL SHIPS TRANSFERRED FROM OUR OLD

REGISTER TO THE NEW ONE AND ANY SHIPS JOINING THE NEW REGISTER

FOR THE FIRST TIME ON OR AFTER 3 DECEMBER 1990.

3. WE DO NOT SEE THE SOLUTION TO THIS PROBLEM AS BEING IN OUR

HANDS AS WE BELIEVE THAT WE HAVE DONE EVERYTHING WE CAN DO IN THE

PRESENT CASE WITH OUR REPEAL OF SECTION 73 OF THE 1894 ACT IN SO

FAR AS IT IS PART OF THE LAW OF HONG KONG.

4. WE HAVE HOWEVER EXPLORED A NUMBER OF OTHER OPTIONS IN AN

ATTEMPT TO FIND A SOLUTION. AN AMENDMENT TO EXCLUDE HONE KONG FROM THE APPLICATION OF SECTION 73 OF THE 1894 ACT WOULD SOLVE THE PROBLEM BUT THIS WOULD NO DOUBT BE A LENGTHY PROCESS. IT WOULD ALSO OPEN UP THE MATTER TO PUBLIC DEBATE, WHICH WE WOULD MUCH RATHER AVOID.

5. ANOTHER OPTION IS TO SEEK AN ADMIRALTY WARRANT UNDER SECTION

73 OF THE 1894 ACT. IT WOULD BE A TEDIOUS EXERCISE TO ISSUE AN

INDIVIDUAL WARRANT IN RESPECT OF EACH SHIP ON THE REGISTER.

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