IN CONFIDENCE
Brystach SP
CC: Mr Willott SP2
Your ref: 21/9
Our ref:
FOR.1147/G
HA H Cortazzi Esq CMG
Counsellor (Commercial)
British Embassy
TOKYO
Japan
BOARD OF TRADE
SHELL MEX MOUSE STRAND
LONDON WC 2
K.271. Pl.P.A
14
11 August 1970
CONTAINER BIRTHS AT HONG KONG
Thank you for your letter of 31 July about Mr Oyama's approaches to you in connexion with his company's bid for one of the Hong Kong container berths.
2. Hy inquiry was prompted, as you deduced, by an informal approach from OCL when they heard, no doubt from Rae-Smith, about this. COL have already committed themselves fairly heavily in planning and development for the containerisation of their Far Eastern scrvice. They attach great importance to success in their bids for two berths and regard it as a vital factor in their plans. Our own impression, from what we know of the other containerised trades, is that thorough control by the operator of the whole system is necessary for efficient operation; the striking success of Sealand is due in no small degree to their thorough control of the land as well as the sea operation. CCL were particularly concerned that they might be faced with the choice of using a terminal run by an undertaking with limited resources and no practical experience of operating a container terminal, or of recasting their plans.
3. OCL and their partners understand of course that their bid must rest on its merits, but they did not wish to appear indifferent to its outcome if competitors were seeking other ways of advancing their prospects. I have reassured them on this score and I agree that there is nothing more the Embassy should do in the matter.
RUMA REFERON
R R Goodison
Copied to:
Sir John Cowperthwaite KBE CMG Government of Hong Kong
✓L Pickles Esq
Far East Department FCC
LAST
**
HKK 21/4.