Terror fear puts paid to flag cash

By EUGENE BINGHAM

When Israeli commandos stormed a gun-running ship sailing under the Tongan flag, the Pacific nation became caught up in the war on terrorism.

Another Tongan attempt to use its sovereignty in pursuit of foreign currency had brought it international controversy.

International pressure saw to it that Tonga would put a halt to its fledgling business of running an open ship registry allowing seafarers from anywhere to fly the Tongan flag - after paying the appropriate fee.

Three weeks ago, the Karine A was seized by Israel and accused of transporting explosives and weapons for the Palestinians. Investigations established the ship was owned by an Iraqi who had registered the ship through Tonga under the kingdom's flags-of-convenience enterprise.

After the seizure of two more Tongan-registered ships - both of which were subsequently cleared of any wrongdoing - the Tongan Government said this week that it was suspending new registrations.

Acting Deputy Prime Minister Clive Edwards said the Government would review its registry to reassure the international community of Tonga's support for the war on terrorism.

But the saga has irked high-ranking officials and unnerved other Pacific neighbours of New Zealand who run open registries.

Tongan officials said the disruption to the registry jeopardised a legitimate Government operation and blamed diplomatic pressure and competitors for the controversy.

Several Pacific nations, including Vanuatu and Tuvalu, run open registries, enabling foreign vessels to fly their flags. Critics, such as maritime unions, say the practice allows ship-owners to be lax about safety and employment standards.

The US Department of Transport's maritime administration said open ship registries often featured unrestrictive laws and low tax liability, low vessel registration fees, and the possibility of low crew costs.

"While safety problems and substandard conditions do not necessarily result from open registries, a greater possibility exists for both," said a spokeswoman.

In December 2000, Tonga set up an open registry run by a company in Greece. It followed a decision in the mid-1990s to sell passports to foreigners.

The Tonga International Registry now had 184 ships on its books, and had earned the Government about $200,000, officials said.

The man hired as Tonga's deputy registrar in Greece, Peli Papadopoulos, said the registry had observed strict international standards in ensuring each ship was technically sound and that the ownership was legal. But Tonga was in no way responsible for the cargo carried by ships under its flag.

A high-ranking official in Tonga said the registry was interested only in ownership and safety.

"We have no way of finding out, or trying to find out, who these people are or what their motives and businesses are - we are only interested in the safety and quality of the vessels," said the official, who spoke on condition of anonymity.

"That's the same with all registries."

Shipping sources confirmed that, strictly speaking, this was correct for other registries too.

* eugene_bingham@nzherald.co.nz