TNAG-0955-FCO40-1174-Legislation-for-traffic-on-roads-in-Hong-Kong-1980 — Page 72

RESTRICTED

DEPARTMENT OF TRADE

1 VICTORIA STREET

C Birch Esq

Export Credit Guarantees Department

Aldermanbury

House

Aldermanbury

London

EC2 2EL

31

Enter

KICK 172/1

LONDON SW1H OET

Telephone Direct Line

Switchboard

01-215

01-215 7877

NKK

Our Ref CRE 43920

3 October 1980

172

ञ्च

RECEIVED IN REGISTRY NO. 51

0 9 OCT 1980

DESK OFFICER

INDEX

REGISTRY

Action Taken

See (32

Dear Burch

BUSES FOR HONG KONG

PA

No

M

a.10

(018

Лиша

BTC Hong Kong asked that I be shown EXCED 28 and 29 because of the difficult position that has been reached.

I fully accept that the terms you are being asked to provide would represent an extraordinary departure from your normal business conditions. If this was purely a matter of lost exports I would not feel it right to press you any further, but there is, as you probably know, a long history of problems associated with supply of buses to Hong Kong in which (despite problems at the Hong Kong end) the UK is seen as being a less than satisfactory partner. The result is that we are in danger of losing the all important Commonwealth preference built into Hong Kong's bus service ordinance. The consequences of such action would, I am sure, be very serious for Leyland Vehicles amongst others and the political embarrassment of the Governor being forced to remove this rather dubious provision can be imagined.

The Governor must be seen to govern the Colony in its best interests yet has always attempted to ensure that UK interests are also served in manner consistent with his overall responsibilities. If therefore, we cannot demonstrate that we have done everything possible to ensure the placing of these orders with the UK he is sure to raise the issue direct with our Ministers. In that case he will point out that we almost certainly will lose the all important Commonwealth preference and that he will be unable to prevent this happening.

I suggest in the circumstances that these political issues be taken into full account in an urgent re-appraisal of this case. We must show that we have done our best.

I am copying this to Dick Clift and John Cammell yu is eve еди

Chrobe Prem

JCS PRISTON .