3.—(1) The Secretary of State may grant exemptions from all or any of the provisions of these Regulations (as may be specified in the exemption) for classes of cases or individual cases on such terms (if any) as he may so specify and may, subject to giving reasonable notice, alter or cancel any such exemption. In particular, the Secretary of State may, either absolutely or subject to such conditions as he thinks fit, exempt any ship the keel of which was laid before the coming into force of individual regulations, from those requirements if he is satisfied that compliance with those requirements are either impractical or unreasonable in the case of that ship.
(2) Every ship the keel of which was laid before 26th May 1965 shall be exempt from the requirements of these Regulations, except regulation 54 and paragraphs 9, 10, 11 and 12 of Schedule 4 in Merchant Shipping Notice MSN 1671 on condition that it complies with all the requirements of the Merchant Shipping (Cargo Ship Construction and Survey) Regulations 1981 which would have applied to it if those Regulations had not been revoked.