3.—(1) No ship affected by a restriction on registration specified in Column 3 of the Schedule in relation to any category of registry shall be registered under Part I of the Merchant Shipping Act 1894(1) in a relevant overseas territory assigned to that category.
(2) Paragraph (1) above shall be without prejudice to the operation of any provision for the time being in force under the law of any such territory as is mentioned in that paragraph by virtue of which the registration of ships under Part I of the 1894 Act in that territory is, or may be, further restricted.
(3) Paragraph (1) above shall not affect until 1st January 1994 the continued registration of any ship in a relevant overseas territory specified in Column 4 in relation to category 2: Limited tonnage and type if it was registered in that territory on 15th July 1992.
(4) Ships falling within category 2: Limited tonnage and type in the Schedule are excepted from the restriction on registration in the following circumstances—
(a)that the ship is—
(i)a fishing vessel, or
(ii)a passenger ship intended for, and used only on, non-international voyages; or
(iii)a ship of such importance in the special local circumstances that the Secretary of State, with the advice of the Governor or Lieutenant Governor, as the case may be, is satisfied that it would not be appropriate for that ship to be registered elsewhere than in the relevant overseas territory;
and
(b)there are in force arrangements between the Secretary of State and the Governor or the Lieutenant Governor, as the case may be, that any ship to which sub-paragraph (a) above applies will be surveyed and inspected to the standards of regulations, relating to the safety of ships and persons on them and to the protection of health of persons on them and to the prevention of pollution, that would apply to the ship if it were registered in the UK, to the extent set out in the arrangements.