§ Sir David PriceTo ask the Secretary of State for Transport what progress has been made in negotiations with flag of convenience states to help ensure the availability of flagged-out British-owned ships in the event of crisis or war.
§ Mr. ChannonOn 28 June representatives of Her Majesty's Government and the Commonwealth of the Bahamas signed a memorandum of understanding under which the Government of the Bahamas agreed to allow British-controlled ships to be made readily available to Her Majesty's Government in the event of crisis and war. In doing so, the Bahamas have agreed to waive their sovereign authority over those vessels at such a time.
This is the first such agreement we have reached with an open registry state; We hope, however, that others will follow later this year.
British shipowners who agree to make their vessels available to Her Majesty's Government under this memorandum of understanding will be eligible for war risks insurance under arrangements that have recently been concluded with the British War Risks Associations.