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044214 MDLIAN 475
THIS OPTION IS TO BE PURSUED, WE WOULD ASK YOU TO CONSIDER WHETHER A GENERAL WARRANT COULD BE ISSUED IN RESPECT OF SHIPS
WHICH REGISTER IN HONG KONG.
6. WE HAVE ALSO EXAMINED WHETHER WE CAN RELY ON COLONIAL REGULATION 125 WHICH PERMITS DEPENDENT TERRITORY MERCHANT SHIPS TO CARRY DISTINGUISHING FLAGS WITH THE BADGE OF THE TERRITORY THEREON IN ADDITION TO THE RED ENSIGN. WE ARE UNSURE WHETHER CR 125 CAN BE TAKEN TO MEAN THAT A GENERAL WARRANT HAS BEEN ISSUED IN RESPECT OF BRITISH SHIPS REGISTERED IN DEPENDENT TERRITORIES. WE CAN TRACE NO RECORD OF SUCH A WARRANT. IN ANY EVENT, IN THE ABSENCE OF SUCH A WARRANT, WE DOUBT WHETHER WE CAN RELY SOLELY ON CR 125 SINCE IT CONTAINS THE PROVISO THAT SUCH FLAGS SHOULD NOT INFRINGE SECTION 73(2) OF THE 1894 ACT. WE SHOULD NEVERTHELESS BE GRATEFUL IF YOU CLARIFY THE EFFECT OF THE REGULATION AND ADVISE WHETHER A GENERAL WARRANT HAS BEEN ISSUED UNDER THIS AUTHORITY IN THE PAST.
7. FINALLY, WE HAVE EXPLORED WHETHER WE CAN RELY ON SECTION 78(1) OF THE MERCHANT SHIPPING ACT 1906, WHICH PROVIDES THAT THE BOARD OF TRADE MAY EXEMPT ANY SHIP FROM ANY SPECIFIED REQUIREMENT CONTAINED IN THE MERCHANT SHIPPING ACTS, OR DISPENSE WITH THE OBSERVANCE OF ANY SUCH REQUIREMENTS IN THE CASE OF ANY SHIP. IT APPEARS THAT THE SECRETARY OF STATE FOR TRADE HAS POWER UNDER THAT SECTION TO DISPENSE WITH THE PROVISIONS OF SECTION 73 OF THE 1894 ACT AS AMENDED BY THE MERCHANT SHIPPING ACT 1988. THE GROUNDS FOR DISPENSING WITH THE PROVISIONS OF SECTION 73 IN RESPECT OF THE TWO FLAGS' ARRANGEMENT WOULD BE THAT IT IS UNNECESSARY, IN THE CASE OF SHIPS WHICH REGISTER IN HONG KONG, FOR SUCH SHIPS TO COMPLY WITH THE REQUIREMENT OF SECTION 73 TO OBTAIN A WARRANT BECAUSE PROVISION HAS BEEN MADE IN RESPECT OF FLAGGING REQUIREMENTS UNDER THE TWO FLAGS'' ARRANGEMENT WHICH HAS BEEN AGREED BY THE UK AND IMPLEMENTED IN HONG KONG BY THE 1990 ORDINANCE. SUCH ARRANGEMENTS APPEAR TO BE AT LEAST AS EFFECTIVE IN RESPECT OF CONTROL OF THE FLYING OF A FLAG IN ADDITION TO THE RED ENSIGN (THE SUBJECT MATTER OF SECTION 73) AS ACTUAL COMPLIANCE WITH THE SECTION 73 REQUIREMENT TO OBTAIN A WARRANT.
8. WE SHOULD BE GRATEFUL IF YOU WOULD CONSIDER THE ABOVE OPTIONS AND ADVISE WHICH, IF ANY, YOU FAVOUR TAKING FORWARD. UNLESS YOU CONSIDER THAT WE ARE ALREADY COVERED BY CR 125 AND/OR A GENERAL WARRANT, AS DISCUSSED IN PARAGRAPH 6, WE WOULD FAVOUR THE OPTION IN PARAGRAPH 7, WHICH SEEMS TO US TO BE A SIMPLER AND MORE
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