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RECORD OF MEETING BETWEEN THE MINISTER OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS AND MR Y K PAO AT THE FOREIGN AND COMMONWEALTH OFFICE ON THURSDAY 12 FEBRUARY AT 11 A M
Present
Lord Goronwy-Roberts
Mr AC Galswathy
Mr G R Webb
Mr Y K Pao
Lakk 853/548/
Mr Helmet Sonman
1.
Lord Goronwy-Roberts congratulated Mr Pao on the award of the
CBE in the New Year Honours.
2. Mr Pao said he would be leaving London on 13 February for visits to Egypt, Saudi Arabia and Kuwait. In Egypt he would be
He indicated meeting President Sadat and the Suez Canal Authority. that the President wished to discuss building a bridge but did not follow up with any detail. Lori Goronwy-Roberts said the canal was a fact of life which should be brought back into play, subject to reasonable stability in the Middle East and asked Mr Pao what impact he thought the opening would have on shipping. Mr Pao thought it would not have a great impact; the opening would bring cost benefits for the smaller ships but the larger vessels were unable to use the
canal.
P.A.c
3. Lord Goronwy-Roberts said he understood Mr Pao owned the
Mr Pao said this was largest merchant shipping fleet in the world. So. His fleet currently comprised some 133 vessels totalling approximately 18 million tons and 25 ships were under construction in Japan. In reply to a further question, he said his companies as such had no ships laid up. However, some of the companies who have his ships on charter had laid some up.
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4. Mr Pao said he was a member of the Hong Kong Mass Transit Authority. He added that the Authority was raising money in Japan and throught Euro-dollar bonds. Lord Goronwy-Roberts enquired as to the interest rates payable. Mr Pao said these had not been finalised but he thought the rate for the Japanese bonds would be
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