6

Private Secretary Secretary

Type NSID RuyL

17/m

AKK 121/10 RECEIVED IN KAGISTRY NO. 51

19 MAR 1/81

DECK OFFICER

INDEX

منه

REGISTRY

PA Action Taken

BRITISH SHIPBUILDERS' SALES TO HONG KONG AND CHINA

Problem

1.

To reply to a letter from Mr R Atkinson, Chairman of British

Shipbuilders, to the Secretary of State concerning the sale of

ships to Hong Kong and China.

Recommendation

2. I recommend that the Secretary of State reply on the lines

of the attached draft. FED concur.

Background

3. The letter from Mr Atkinson is self-explanatory. The Hong Kong

market is a lucrative one and British Shipbuilders have won recent

orders in the face of strong Japanese competition. However, Japanese

shipbuilders still receive the majority of new orders from Hong

Kong owners.

4.

The letter arrived after the Secretary of State's meeting with

the Governor of Hong Kong, but is, nevertheless, timely in view of

the Secretary of State's own visit to Hong Kong and China later

this month. Lord Carrington will in fact be seeing Sir Y K Pao

during the visit. We will provide a brief for that. I suggest

that in addition Sir M MacLehose be sent copies of the correspondence

with Mr Atkinson.

5. Mr Atkinson copied his letter to the Secretary of State for

Trade. We have confirmed with his Office that Mr Biffen will not

be replying separately.

Ber

R D Clift

Hong Kong and General Department

16 March 1981

cc PS/Mr Biffen, DOT

Mr Hobbs, CRE4/2, DOT FED

MAED

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