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Background
4.
The deteriorating service provided by the two bus companies has been a matter of increasing concern to the Hong Kong Government. The companies have attempted to excuse themselves on the grounds that they are required in effect to buy from BIMC, who quoted very long delivery dates, and all too often (sometimes but not always as the result of strikes) failed to deliver on time. BLMC, while acknowledging that delivery promises have not always been honoured, have pointed out that hitherto the bus companies have not thought out their requirements sufficiently far in advance; double-decker buses are in great demand, and it is almost impossible to fit substantial orders at short notice into
an already tight production schedule. BLMC are well aware of mounting pressure in Hong Kong to remove the 'Buy Commonwealth' clause, and Lord Stokes himself, in a letter to our Senior Trade Commissioner, has expressed his concern at the possibility of a change in the Franchise Agreement. "I am determined", he wrote, "that we will not lose this important market and the necessary action is being taken to ensure that deliveries of the Fleetline
chassis are maintained."
5. Earlier this month the Hong Kong Transport Department produced, after consultation with the two bus companies, a schedule of their
bus requirements up to 1980. New orders are expected to be placed in this period for well over 1,500 buses (mainly double- deckers) in addition to the buses already on order for delivery next year.
The list was delivered to BLMC at the Department of Trade on 10 December, with the request that as firm assurances as possible should be given that Hong Kong's requirements would receive priority, so as to ensure that they are met on time. doubt at their meeting on 20 December Lord Stokes will be able to give the Governor at least a preliminary indication of whether BLMC would be able to accept these orders, and if so would be prepared to use their best endeavours to deliver on time.
No
/Senior
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