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CONFIDENTIAL

Quality of UK-built ships, efficiency etc.

13.

Hong Kong shipowners, and Y K Pao in particular, have in the past complained of the quality of British ships, although their main criticism is likely to relate

to be slow delivery and replacement of parts.

If any criticisms of this nature arise, Mr Rawlinson might say that the rationalisation Bill has now been enacted,

and with vesting due for 1 July, we intend to ensure that the comprate approach of British Shipbuildes will lead

to a more efficient running of the industry as a whole.

Concluding Remarks

14. You might conclude by saying that you see this opening meeting as setting the stage for further detailed talks with British Shipbuilders and perhaps potential charter customers. If the delegation is able to come up with any proposals from these further talks, the Government will be very ready to consider what it could

do to help.

5.

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