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HQYTETØTED
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 BLMC, 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 agreements. "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. Last 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. Senior BLMC representatives are expected to visit Hong Kong early in the New Year to give considered comments on the proposed programme.
Hong Kong & Indian Ocean Dept.
7 January 1975