Flag States Should Re-assert control

The headline said it all “Tonga . . .” The bar to entry into the open, i.e. flag of convenience, ship registration business was never very high, just find a friendly government, write up some laws and regulations, and hang out your shingle. It helps if you have a “better mousetrap’, Americans wanted to drink alcohol and Panama was born, the world went to war and Panama enabled the US to ship war materials to Europe in spite of isolationist laws. Oil companies wanted an alternative to Panama and “voila” Liberia was created. Cy Wentworth happened to visit the New Hebrides, get stuck there by a typhoon and soon Vanuatu was open for business. Panama lawyers anticipated problems with the Noreiga government and set up Belize.

But the ease of entry was always a two edged sword. It could be argued that Vanuatu, the Bahamas and Marshall Islands, among others, were all started as a result of the adverse publicity generated by Sargent Do and his methods of dealing with political rivals for control of Liberia. Vanuatu, again among others, certainly benefited by US efforts to topple the Noriega regime in Panama.

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