AIR MAIL
Dear Sir,
Jele
火
COLONIAL SECRETARIAT, HONG KONG.
20th March, 1969.
I refer to your letter of 13th March,
1969, about the sale of British Leyland buses to the Kowloon Motor Bus Co. Ltd. with particular reference to the clause in their franchise requiring the use of buses of British make (or, more strictly, of British or British Commonwealth make).
So far as I am aware the reason why there! have been suggestions that the company be given exemption from this clause (either generally or in particular cases) is not one of principle arising from any monopoly position which British Leyland may appear to have acquired; but only that it is not reasonable, in the public interest of Hong Kong, to require a public utility to purchase equipment which, for reasons of suitability or price, are not judged by the company to be the best available for the purpose.
But, in any case, I would presume that you are not concerned to argue that the present restrictive clause should be maintained to protect you against competition from manufacturers in other countries, the more particularly as it is likely that you would continue to enjoy the protection of our 15% tax on non-Commonwealth vehicles.
There has in fact been no application yet for exemption from the clause. If one is received, you will understand that we have no alternative but to consider it in the light of the best interests of Hong Kong
Yours faithfully,
L.J. Portman, Esq.;
Export Sales Director,
(J. Cowperthwaite) Financial Secretary
British Leyland Motor Corporation Ltd.,
Berkeley Square House,
Berkeley Square,
London, W.1.