TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 236

HKK172

RECEIVŁO DEL TASTY NO. 51 1 0 MAR 1920

DESK OFFICES

PA

S

see

GRS 600

UNCLASSIFIED

COMMERCIAL IN CONFIDENCE

FM BTC HONG KONG 10:045Z MARCH 80

TO ROUTINE E C G D

TELEGRAM NUMBER EXCED 7 OF 10 MARCH AND TO DO I (FOR BENJAMIN AND BELL) INFO ROUTINE D.O T (FOR H K UNIT)

FOR BIRCH

KOWLOON MOTOR BUS COMPANY

INDEX

по

Jr.3

UNDER THE NEW MEMORANDUM OF UNDERSTANDING CONCLUDED WITH THE TRANS-

PORT DEPARTMENT THE TWO HONG KONG MAJOR BUS COMPANIES ARE NOT ONLY REQUIRED TO EMBARK ON A COMPREHENSIVE FLEET RENEWAL AND REPLACEMENT PROGRAMME (SEE MY LETTER OF MAY 14 1979 TO BENJAMIN AND SUBSEQUENT CORRESPONDECE), BUT ALSO TO FOLLOW A PROGRAMME OF RENOVATION OF EXISTING BUSES. AS A RESULT, THE KOWLOON MOTOR

BUS COMPANY (KMB) HAVE PLACED A PANIC ORDER FOR LEYLAND AND GARDNER SPARES VALUED AT POUNDS STERLING 5 TO 6 MILLION. BECAUSE

THE CAPTIAL COST OF REPLACING AND RENOVATING THE BUS FLEETS IS SUBSTANTIAL, THE COMMISSIONER FOR TRANSPORT HAS PUT IT ON RECORD THAT THE HONG KONG GOVERNMENT WOULD WELCOME ANY ATTRACTIVE FINANCIAL ASSISTANCE THAT CAN BE PROVIDED TO THE BUUS COMPANIES TO HELP THEM MEET THEIR OBLIGATIONS.

2. THE LOCAL LEYLAND AGENT TELLS US THIS REPRESENTS TWO AND HALF

TIMES LEYLAN'S PREVIOUS LARGEST SINGLE ORDER AND THAT THE U K COMPANY IS FULLY GEARED TO BEGIN IMMEDIATE SHIPMENTS AT RATE OF POUNDS STERLING 250,000 A WEEK. IF THESE ARE NOT TO BE SUSPENDED THE FINANCIAL CONSIDERATIONS NEED TO BE SETTLED WITHIN THE NEXT

THREE WEEKS.

TELL US THAT THEY 3. GRINDLAYS WHO ARE ACTING ON BEHALF OF KMB

HAVE DISCUSSED TERMS OF CREDIT FACILITY WITH SUMMERS OF YOUR COMPREHENSIVE GUARANTEE EXTENDED TERMS UNDER-WRITING BRANCH. HE

APPEARS TO HAVE BEEN UNIMPRESSED WITH GRINDLAYS' APPLICATION AS IT STOOD AND REQUESTED FURTHER INFORMATION ABOUT THE COMPOSITION OF THE SPARES ORDER WHICH GRINDLAYS ARE PURSUING IN HONG KONG.

14.