UNCLASSIFIED COMMERCIAL IN CONFIDENCE

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COMMERCIAL IN CONFIDENCE

FROM DOT 101701Z NOV 82

TO PRIORITY BTC HONG KONG

TELEGRAM NUMBER OTTER 69 OF 10 NOVEMBER

351101

TRED HKG

хз

1 YOU SHOULD BE AWARE THAT MAXWELL-HYSLOP MP, CHAIRMAN OF

SELECT COMMITTEE ON TRADE AND INDUSTRY, HAS RAISED WITH MFT

A CASE INVOLVING THE POSSIBLE SUPPLY OF POLICE LAUNCHES TO

HONG KONG BY JAMES AND STONE LTD.

2 THE COMPANY WHO ARE BIDDING FOR THE SUPPLY OF 15 LAUNCHES,

VALUE APPROX. POUNDS STERLING 15-20M, SAY THAT THEIR PRICE WILL BE

A COMPETITIVE ONE BUT SUFFER, PARTICULARLY AGAINST LIKELY

CHINESE COMPETITION, BECAUSE OF THE SHIPPING COSTS FROM THE

UK. MAXWELL-HYSLOP ASKED ON THEIR BEHALF WHETHER THERE WAS

ANY WAY IN WHICH WE WOULD ASSIST IN MEETING THE SHIPPING COSTS

BUT WE HAVE CONFIRMED THAT THERE IS NOT. THE ORDER IS ALSO

TOO SMALL TO QUALIFY FOR SHIPBUILDING INTERVENTION AND OTHER

FORMS OF INDUSTRY ACT ASSISTANCE DO NOT APPEAR TO BE APPROPRIATE.

WE HAVE HOWEVER SUGGESTED THAT THE COMPANY KEEP IN TOUCH WITH

US IN THE EVENT THAT THERE IS ANY OTHER ASSISTANCE WE OR

YOU CAN GIVE THEM.

3 IT IS LIKELY THEREFORE THAT THIS CASE AND POSSIBLY THE

GENERAL SHIPPING COST PROBLEM WILL BE RAISED WITH YOU DURING

THE SELECT COMMITTEE'S VISIT.

1

UNCLASSIFIED COMMERCIAL IN CONFIDENCE

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