BY BAG
CONFIDENTIAL
356
1918
SCR 27/65 III
CW SQUIRE ESQ MVO
SEAD
F CO
RKAVE
REGISTRY No. 51
18 AUG 1975
NXX180)
12 August 1975
15/8
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HONG KONG/VIETNAM
You may be glad to hear that the problem of the "TRUONG XUAN" seems to be solving itself, which is why we have not bothered you about it since your telegram No. 561 of 17 July. The Director of Marine has just passed to me a letter which he has received from the Inter-Ocean Towing Company of Singapore saying that they have reached a mutual settlement with PHAM Hong-quang, the head of the D R V Trade mission here. According to this agreement, the Vietnamese will make a lump-sum payment of HK$200,000 to the Inter-Ocean Towing Company in return for the vessel and its cargo. Unless anyone else comes into the fray at the last moment and we must keep our fingers crossed I hope this means that the "TRUONG XUAN" will pass into Vietnamese hands without more ado. It is perhaps surprising that PHAM should have agreed to pay such a high price for this vessel, which according to information received by our Director of Marine is unlikely to be worth much more than HK$500,000 in its present condition and would need at least HK$ 2 million spent on it in order to make it seaworthy. It is also interesting that PHAM should be prepared to enter into direct commercial negotiations in order to secure the ship.
2.
Meanwhile, the news about the Air Vietnam plane is not so happy, but there is no sign as yet of Pan An taking it away. Their local representative wrote to the Director of Civil Aviation on 6 August and offered formally to pay the outstanding landing fees and parking charges in return for permission to take off. We have now replied to the effect that since the aircraft is at present within the jurisdiction of the Hong Kong courts
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