2(1)This paragraph shall have effect in relation to any relevant overseasterritory to which the provisions of sections 2 to 7 of this Act have not beenextended by an Order in Council under section 56.
(2)Where—
(a)by virtue of section 2(2) of the 1894 Act (obligation to register British ship) as in force in any such territory, any ship is (apart from this paragraph) a British ship that is not to be recognised as such, but
(b)the ship is a British ship by virtue of section 2 of this Act,
the ship shall nevertheless be recognised as a British ship for the purposes of the Merchant Shipping Acts as in force in that territory.
(3)Where—
(a)by virtue of section 2(2) of the 1894 Act as in force in any such territory, any ship is a British ship that is not to be recognised as such, and
(b)the ship is not a British ship by virtue of section 2 of this Act,
the ship shall, notwithstanding section 2(3) of that Act (as so in force), not be liable to detention under that provision.
(4)Where—
(a)any ship is not wholly owned by such persons as are mentioned in section 1 of the 1894 Act (qualification for owning British ships) as in force in any such territory, but
(b)the ship is a British ship by virtue of section 2 of this Act,
the ship shall nevertheless be recognised as a British ship for the purposes of the Merchant Shipping Acts as in force in that territory, and the following provisions of the 1894 Act (as so in force), namely—
(i)section 69 (penalty for unduly assuming British character), and
(ii)section 71 (penalty for acquiring ownership if unqualified),
shall not apply in relation to the ship.