to go back on the award of the berths following competitive tendering.
However, OCL have instructed Modern Terminals Ltd that, because of their
vital interest in a second berth to run the new service, they are interested
in a site which was at one time earmarked for a desalination plant, but which OCL understand to be provisionally though not,as yet, officially designated for a fifth berth. This site is at right angles to the other
berths adjacent to OCL's No 1 berth. OCL have asked whether the Board of
Trade could inform the Hong Kong Government of the importance attached to
the provision of a second berth for OCL because of its significance for
UK trade and could ask them to consider OCL's interest sympathetically.
Brief
8. We cannot of course involve ourselves in the normal exercise by the
Hong Kong Government of its commercial judgment. Indeed we have not been
asked to do so. The extent to which we can nonetheless represent the
interests of British shipowners is limited by the considerations set out in paragraphs 4 and 6 and, perhaps, by uncertainty at this stage as to just how
many berths will be needed to operate the services provided by the lines
and mainly interested by others requiring common user facilities. However, it
would be reasonable to refer to the interest of the UK Government, as
indicated in the recent exchange with the Commercial Counsellor in Tokyo.
This interest is twofold: a shipping interest on behalf of the British lines.
which will provide a major part of the new integrated container service, and
a trade interest, shared with Hong Kong, in the vital contribution this
service will provide in our two-way trade. We understand from the British
lines involved that this service will require 2 complete container berths at
Hong Kong to be under the control of Modern Terminals Ltd. if the UK and
associated German and Japanese lines are to meet their commitments and avoid
serious difficulty and delay in mounting this complicated exercise, which is to provide great advantages of speed and service to the trade between the UK
and Continent, Hong Kong and the Far East. We understand that the 3 berths
considered suitable have now been allocated in open competition to Modern
Terminals Ltd, Sea-Land and the Oyama Shipping Co. Since the UK lines and
their associates have been disappointed in their bid to secure the 2nd berth
adjacent to their 1st, they have, we understand, expressed their interest in
obtaining a new site at right angles and adjacent to their berth which, they
believe, may be intended for use as an additional berth,
9.
We do not know what traffic will be using the berth allocated to the
Oyama Shipping Company whose resources and access to trade had been thought
to be very modest; but we understand that the commitment of the main Japanese (and German) lines in the Conference to use the services of Modern
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