TNAG-0272-FCO40-308-Scheme-for-development-of-container-terminal-at-Hong-Kong-1970 — Page 36

OECRETDER

NOTE BY OCCURS IDENT L

INFIDENTIA

HONG KONG TERMINALS

The Hong Kong Government wanted development to be on a common user

basis. Sea-Land and ourselves, both with large throughputs, wanted berths

which they could plan and control themselves, although we made it clear '

that MTL would shoulder its share of obligations in catering for other

users as these arose, consistent with its own requirements.

One can understand the H.K. Government wanting a common user facility

and the fact that Oyama would be likely to approach other operators for

business may have been a powerful factor in his success in winning berth

No. 2., although our understanding in confidence is that MTL were significantly

overbid by him.

}

!

With No. 4 berth not proving to be a viable proposition it can be

argued that H.K. Government found themselves not able to satisfy everyone

entriely and chose a solution which gave everybody something.

ship

The result however is to leave the very large Europe Far East trade,

a key trade in the development of container services by the British lines,

without adequate facilities in Hong Kong, an important part of the trade. At the same time there is strong reason to doubt whether berth No. 2, accorded to KCW*, will be able to secure sufficient throughput to make it

viable.

ACT is the othaw lang a

UK contains commotion

I which Ben Line is

A second berth for MTL is considered by us to be absolutely essential to service the Europe/F. East trade. The largest amount of the traffic will be for OCL and ACT, the balance being for Conference partners.

amember and will supply

all

the shit for the

F. East route.

Светие

The Europe/F.East trade route is also of great importance to Hong Kong. Using 1968 figures ** in US dollars fob, Hong Kong's exports rank as

follows:

$ m.

U.S. Europe

637

513

(U.K.

277 )

Japan

54

Canada

54

Australia Singapore

40

35

**

*

Kowloon Container Warehousing Co. Ltd. President: Oyama. of Oyama Shipping

Line.

Vice President: Shizuka of NIC, a leasin

company with connections with CTI

Overall trade figures give a quick general comparison. Bulks and airfreight

bulks do not form a large proportion of Hong Kong trade,

are included;