CONFIDENTIAL
8. You might then ask whether the mission had any
other possible charters in mind our own researchers
have not thrown up any other prospects except possibly British Rail who would be acquiring short haul passenger ferries in the next few years, but these vessels might
not be the type the owners have in mind.
Government Guarantee of Charters
9.
This point is almost certain to be raised since
one of the basic elements of the bareboat charter proposals is that the owners should build against a guaranteed charter income which will cover the financing costs of
the ship.
10. You should make it clear that the Government could
not charter the ships itself nor could it offer a guarantee
of charter income. Nor is the Government in a position to direct any public sector bodies to place charters for ships with a particular owner; these bodies have to act
commercially.
11. What the Government can do is to assist in facilitating
any charter arrangement which would result in additional orders for UK yards. Thus if the owners were able to arrange a charter either through the British Shipbuilders, or direct with a charterer, the Government would be prepared, in appropriate cases, to use the intervention
fund either to ensure that the owner was able to secure
the ship at a reasonable price or to make up the charter income to an acceptable level.
Fleet Expansion Plans
12. Mr Rawlinson might enquire whether the Hong Kong owners have any other plans for fleet expansion, and what those might be. He might say that Dr Chapman at British Shipbuilders will be pleased to discuss these on Wedesday morning.
4.
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