a
flag of convenience: a
term applied to ships
registered in certain small countries, notably Liberia and
Panama, by owners who are not nationals of the countries, thus
flying flags which do not represent their true
origin. Originally the practice started in
order to evade inspections and regulations but later came into
use by the US particularly out of
necessity to increase
commerce and naval
power without the high wages and
conditions of US sailors (which
cost five
times as much as crews from other countries).
—SHSBC Binder 2 Approved Glossary