BRITISH LEYLAND MOTOR CORPORATION LIMITED
Continuation Sheet 1
Whilst the 15% tax on non-Commonwealth vehicles is
acceptable and of some assistance, this is not excessive when compared with protection imposed against our industry in other parts of the world, notably French and other colonies. In fact Japanese vehicle manufacturers are so protected by their Government tax arrangements as to make the Japanese market more or less prohibitive to outsiders such as ourselves. From behind this protection they are able to offer low initial prices to penetrate a new market, and then raise them later, once the commitment has been made.
In addition, K. M. B. are now considering importing buses completely assembled, due to shortage of skilled labour in Hong Kong. This in itself is a big advantage to Japanese suppliers, due to the distances involved. I do suggest, therefore, that if the occasion arises, the clause in their franchise requiring the use of British or British Commonwealth made buses be maintained.
We on our part will ensure that the buses we offer will be in
the best interest of Hong Kong, both in price and quality.
Mr. R. Louey is due in England shortly and we will do all
we can to meet his requirements.
Thank you for your assistance in this matter.
Yours sincerely,
uis l'entman
Louis
L. J. Portman