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CONFIDENTIAL
the extent of the price differential between Japanese
and British quotations. Their comments could also be
sought on the possible measures and arrangements which
might be necessary to enable them to buy British ships.
Credit Terms
5. It is very likely that at least some of the owners will be able to raise finance for the ship purchase from their
own sources. If, however they enquire about credit
terms you might say that we would expect to be able to
offer them normal OECD credit terms on 70% of the cost of the ship (71% over 7 years) but any more than this would be to infringe the OECD Understanding on Export Credits.
Possible Charters
6.
The owners are virtually certain to ask about specific
charterers in the public sector. You might say that we
have made a number of inquiries and that whilst there is some scope for business, opportunities are limited given the current surplus of shipping and depressed charter rates for existing tonnage. BSCS shipping manager, Mr Pollock, will be at the reception for the mission to
be given by the Secretary of State for Trade, and will be able to discuss prospects.
70 We are at present examining possibilities in the North Sea, but there is not a lot of scope there as again
much of the shipping required for oil and oil related products is in surplus, and there are doubts whether safety vessels and off shore supply vessels would be suitable for such arrangements. Mr King, the managing director of BP shipping will however be at the reception.
3.