JB
Our reference: CRE. 24185G Your reference:
RESTRICTED)
BOARD OF TRADE
Commercial Relations and Exports Department, 2
1 Victoria Street, LONDON S.W.1
Telex: 25955 Answer Back: 80THQ LONDON
Telegrams: Advantage London S.W.1
Telephone: 01-222 7877, ext. 2255
30
71k
February, 1969
afe/i
Acti
Thank you for your letter of 6th January about the Kowloon Moter Bus Company.
I attach a copy of a letter I have just received from the Society of Motor Kanufacturers and Traders about this problem. The member referred to in the letter is a Mr. Hunter of ketal Sections Limited, part of the Tube Investments Group who supply frames, panelling and fittings as well as Gardner diesel engines to both the Kowloon Motor Bus Company and the China Motor Bus Company.
I also attach a copy of my reply. This does not directly answer the main point of Mr. Caton's letter, and more particularly his telephone conversation with me, that as Hong Kong is a colony H.M.G. has the right to insist upon the retention of this restrictive Clause in the franchise. As I understand it, on the strictly legal interpretation of the position this is correct but as I pointed out to Kr. Caton it would not necessarily be in the U.K. longer term interest to take such a line, and we must also bear in mind local political considerations. However, I should be grateful for any further comments you or Herbert Stewart may have on our position, or on the related issue of whether similar prescures might arise from the China Kotor Bus Company.
It might be of interest to you to know that kr. Caton also mentioned to me on the telephone that Mr. Louey has certain interests in a Taiwan bus company.
I am not clear what the implications are of this (if indeed it is correct) but it could be that his ability to buy from Japan for that company is affected by the franchise position in Hong Kong.
I am sending a copy of this letter to Herbert Stewart in the Foreign and Commonwealth Office and to Stan Irwin in the Ministry of Technology.
M. P. V. Hannam, Esq.,
Principal British Trade Commissioner,
British Trade Commission,
Hong Kong.
Yours sincerely,
(J. E. Gowers)