TNAG-0272-FCO40-308-Scheme-for-development-of-container-terminal-at-Hong-Kong-1970 — Page 29

IN CONFIDE

B. Bm stacke SP

Mr

-

Willott SP2

ново

BOARD OF TRADE SHELL MEX HOUSE STRAND

LONDON WC 2

Your ref: 21/9

Our refi

FSR.1147/G

HAH Cartazzi Esq CMG

Counsellor (Commercial) British Embassy

TOKYO

Japan

10 August 1970

1970

4 13

CONTAINER BRITIS AT HONG KONG

Thank you for your letter of 31 July about Mr Oyama's approaches to you in connexion with his company's bid for one of the Hong Kong container berths.

2. My inquiry was prompted, as you deduced, by an informal approach from OCL when they heard, no doubt from Rae-Smith, about this. CCL have already committed themselves fairly heavily in planning and development for the containerisation of their Far Eastern service. They attach great importance to success in their bida for two berths and regard it as a vital factor in their plans. Our own impression, from what we know of the othor containerised trades, is that through control by the operator of the whole systom is necessary for efficient operation; the striking success of Sealand is due in no small degree to their thorough control of the land as well as the sea operation. OOL were particularly concerned that they might be faced with the choice of using a terminal run by an undertaking with limited resources and no practical experience of operating a container terminal, or of recasting their plans.

3. OCL and their partners understand of course that their bid must rest on its nerits, but they did not wish to appear indifferent to its outcome if competitors were seeking other ways of advancing their prospects. I have reassured them on this score and I agree that there is nothing more the Embassy should do in the matter.

DISON

RR Goodison

Copied to:

Sir John Cowperthwaite KBE CMG Government of Hong Kong

L Pickles Esq

Far East Department FCO

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