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5. You go on to say that the UK shipbuilding industry is very much in need of orders, and any proposals which the

owners have to buy ships will be very carefully considered. Now that we have the intervention fund we are in a poition to assist our builders to meet the very severe competition they are facing, particularly from the Far East.

6. In addition, our shipbuilding yards will be vesting in British Shipbuilders on 1 July this year, and the Corporation will then be able to look at the industry as a whole and plan

accordingly. This we hope will enable us to develop a more efficient and competitive industry based on yards with secure

long-term prospects.

7. You might then go on to ask the Hong Kong owners how they see the prospects for world shipbuilding over the next few years. What are their views on world ordering levels? we have been working on a figure of around £12-13m grt per annum up until 1980 or so do they think the Japanese measures, including their plans to increase export prices and reduce their labour force, will be effective in reducing

their share of world orders? How do they see Japanese Shipbuilding developing? What of competition from third

world countries such as South Korea and Taiwan?

8. It would be useful if the group were then to be asked to outline their proposals in general terms boaring in mind that there are to be further more detailed discussions with

Mr Rawlinson and with British Shipbuilders.

9. You might say that these proposals seem to offer a

very useful basis for discussion, although of course British Shipbuilders and ourselves will need to examine the

financial tails before deciding whether they will enable us to come to an arrangement on the lines envisaged by the group.

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