§ Lord Mayhewasked Her Majesty's Government:
For what reasons the Department of Transport stated (Cmnd. 9190 Ch. 7, para. 50) that the Merchant Navy continues to be able to meet foreseen defence needs, and that they do not consider it necessary to place restrictions for defence reasons on the flagging-out or sale abroad of ships registered in the United Kingdom.
§ Lord Lucas of ChilworthThe Government keep under continuous and detailed review the requirements of HMG Forces for support by merchant ships when carrying out their roles in the NATO Alliance; and the availability of merchant ships with specifications capable of meeting those requirements. It is this process which leads to the conclusion in Command 9190 that the merchant fleet continues to be able to meet foreseen defence needs.
The availability of merchant ships to meet such needs depends upon operation under the British flag being commercially attractive not only to British shipowners but also to the many foreign shipowners who place their vessels under the British flag. It would not be in the overall interests of the United Kingdom to discourage governments from permitting their citizens to invest in shipping under other flags.