JB.
Our reference: CRE24185G
Your reference: Overseas/TAC/PS
BOARD OF TRADE
Commercial Relations and Exports Department,
1 Victoria Street, LONDON S.W.1
Telex: 25955 Answer Back: BOTHQ LONDON
Telegrams: Advantage London S.W.1
Telephone: 01-222 7877, ext. 2255
つれ
February, 1969
Hong Kont
You wrote to me on 31st January about the position of the frenchises of the two bus companies in Hong Kong, and we also spoke on the telephone.
The present position is that the two public transport companies are the only rublic utility franchises, in the strict sense of the term, which contain any stipulation as to origin of materials and equipment. Their franchises are regulated by Chapters 317 end 318 of the Laws. The relevant provisions are identical, requiring that every vehicle used shall be of British or British Commonwealth manufacture, referring disputes as to compliance to the Governor in Council and empowering the Governor in Council en application by the company to permit the use of vehicles of other origin upon such terms as he shall see fit. (There are also two quasi-public utility licences which contain a stipulation that equipment should be purchased in the United Kingdom or the Commonwealth insofar as that is consistert with efficiency, i.e. those of Rediffusion and Commercial Radio).
In September last year it was learnt that the Kowloon Motor Bus Company were seeking a re-negotiation of their franchise with particular reference to the question of the royalty they pay to the Government, which itself raised the highly contentious problems of a porrible fare rise. At that time we were told there was no question of any change to non-British suppliers. However, since then the General Kanager of the Kowloon Kotor Bus Company has made a number of references to the possible purchase of Japanese buses.
The Frincipal British. Trade Comrissioner in Hong Kong, Michael Hannar, has beer. keeping a very close watch on developments and, as you know, has been in close touch with British Leyland and with Dodwells (both Leyland and Ketal Sections' local agent). In particular he has recommended that in the next few months British companies should take the opportunity of lobbying the local Transport Department and local politicians on the qualities of British buses and the good service they have given in the past. He has offered any assistance the Trade Commission can give in placing with local press, radio and T.V. any propaganda that might be available.
As you will see from the above all the information we have received about a possible change to Japanese buses has been in connection with the Kowloor. loter Bus Company and there has, so far, been no reference to China Motor Bus Company, although I agree that any decision on one may well affect the position of the other.
I am writing to Michael Hannam to draw his attention to your interest in future developments and will get in touch with you when I receive any further information.
T. A. Caton, Esq.,
Overseas Executive,
The Society of Motor Kanufacturers
and Traders Limited,
Forbes House,
Halkin Street,
London, S.W.1.
Yours sincerely,
(J. E. Gowers)