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3.
(a)
that we have made a number of enquiries about specific
charterers in the public sector and that while there is some scope for business, opportunities are limited;
(e) that HMG could not charter ships itself or offer a guarantee
of charter income but will be ready to assist in facilitating
any charter arrangements which would result in additional
orders for UK shipyards;
(f)
that if the Hong Kong ship owners were able to arrange a charter either through British Shipbuilders or direct, HMG would be prepared, in appropriate cases, to use the Intervention Fund either to ensure that the owner was able to secure the ship at a reasonable price or to make up the charter income to an acceptable level.
The DOI have told us that their talks with the Hong Kong ship owners have not really gone beyond the stage of general expressions of good will. The Hong Kong ship owners appear to be genuinely inter- ested in placing orders with British shipyards but they have not come ready to draw up contracts. As the next step the DOI intend to recommend that representatives of British Shipbuilders, whom the Hong Kong ship owners saw on 11 May, should visit Hong Kong to see whether definite arrangements can be made.
4. The Hong Kong ship owners delegation saw Mr Steele, Deputy Secretary at the Department of Trade, this afternoon. (No written brief was prepared for this meeting.) We understand that most of the meeting was given over to a discussion of Jardine Matheson's operations in Saudi Arabia. As regards the ship owners' talks, Mr Newbigging said that British Shipbuilders' prices were about 30% above those of the Japanese and that if Hong Kong ship owners are to place orders with British yards it would be necessary to draw on the Intervention Fund (paragraph 2(b) above). Mr Steele took note of this point.
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