the Kingh
This is obvionaly for you.
I would suggest H.K. offer ther. Oyana the fount
on mace tions!
berth on
Pica
00
on komm
29/7
COMMERCIAL-IN-CONFIDENCE
OCL AND THE HONG KONG CONTAINER BERTHS
H.K. Das (Many
· outer
FED 28.
Mr St Johnstone and Mr Graham of Overseas Containers Limited came to see Mr Goodison today about a matter of concern which had arisen in connection with their bids for container berths at Hong Kong.
2.
1
f
Mr St Johnstone outlined the history of the Hong Kong Government's decision to put the four sites available out for bids for development as container berths. OCL and Ben Line (Containers) Ltd and their German and Japanese colleagues between them needed two berths and their commitment in terms of planning and ships ordered was such that the situation would be disastrous if they failed to get them. Sealand were bidding for a third berth. The fourth was in deeper water than the others and would cost twice as much. It was therefore not likely that anyone would have bid for it. The Hong Kong Government were in difficulty because there was political pressure to ensure that at least one of the berths was available for common users, but both the OCL combine and Sealand intended to use their berths fully. The Kowloon Wharf Co., who might have undertaken to provide a common user berth, were in difficulty because they did not have sufficient customers to justify developing the fourth berth though both OCL and Sealand had in fact supported their request to the Hong Kong Government for a subsidy equal to the difference in cost between the fourth and the other berths. Kowloon had, however, probably put in bids for one of the other berths, and there had also been bids for the other berths from two people with limited resources, from a group including the China Provident and North Point Warehouses, and from Oyama an independent Japanese Warehouse Operator.
3. OCL had heard via their agents from HM Embassy in Japan that Oyama had approached the Embassy to ask them to put pressure on the Hong Kong Government in favour of his bid. Mr St Johnstone expressed anxiety that the Embassy might feel obliged to pass on this approach to Hong Kong and stressed how vitally important it was for the OCL group to get the two berths. He would not wish to lose the bid through apparent lack of interest and willingness also to apply pressure. On the other hand he agreed with Mr Goodison that such pressure might well be counterproductive.
4. Mr Goodison said that he would inquire urgently of the Embassy whether there was any substance to the report about Oyama. In the light of the Embassy's reply he would discuss with Mr St Johnstone any further action.
Distribution
Mr Goodison (Sec) Mr Brigstocke (SP) Mr Manziel (SP3) Mr Cortazzi (Tokyo) Mr Campbell (FCO) Mr Pickles (FCO)
IN
RECAY No.51
HILI 21/4
W B WILLOTT SP2
July 1970
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