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5. THE TUNG FAMILY WERE SHANGHAI SHIPOWNERS IN PRE-REVOLUTIONARY
TIMES, AND THEY SUBSEQUENTLY ACQUIRED A MAJOR FLEET MOSTLY UNDER FLAGS OF CONVENIENCE, BUT IN PART UNDER THE RED ENSIGN. THEY HAD A REPUTATION FOR A TAIWAN BIAS, AND HAVE SUBSTANTIAL CONTAINER INTERESTS THERE.
6. HOWEVER THEY HAVE NOW MENDED THEIR FENCSES WITH THE C P G AND I THINK THE CLOSE BRITISH CONNECTION TO WHICH THEY ASPIRE WOULD
BE FAVOURED IN PEKING.
7. ON THE OTHER HAND THE ACQUISITION BY A HONG KONG FIRM, IN GOOD RELATIONS WITH THE CHINESE GOVERNMENT, OF THE OIL DRILLING EXPERIENCE OF FURNESS WITHY, MIGHT HAVE VERY BENEFICIAL RESULTS, IF OIL IS FOUND OFF THE SOUTH CHINA COAST.
8. THEREFORE ON GENERAL GROUNDS I THINK WE SHOULD FAVOUR THE PROPOSED DEAL. BUT IF THE DEPARTMENT OF TRADE HAVE MISGIVINGS OVER 4 (A) OR (B) ABOVE, MR TUNG MIGHT WISH TO TAKE EVASIVE ACTION
OR WITHDRAW, AND I THINK HE IS ENTITLED TO AS CLEAR ADVICE AS IT IS POSSIBLE TO GIVE.
MACLEHOSE
FIXES HARALD
TRED
FED
OID NEWS D PS MR BLAKER
MR CORTAZZI MR MURRAY
RAY
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