TNAG-1154-FCO40-1434-Visits-by-Members-of-Parliament-(MPs)-to-Hong-Kong-1982 — Page 106

THE INDUSTRY AND TRADE COMMITTEE

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7 July 1982]

[Continued

3.3 EC/UK/ASEAN Relationship

SEATAG understands_that bilateral trade relations with ASEAN countries are influenced strongly by EC policy, but it hopes that the negative aspects of any incompatibility will be minimised.

4.

EC/ASEAN

In addition to EC funds disbursed through EDF to the ACP countries, the EC has allocated large sums for studies and technical assistance to ASEAN governments. These funds, to which the UK contributes, are supplied in response to official governments' requests to the EC Regional Office in Bangkok. SEATAG would like to see the use of these funds closely monitored. Given the curtailed British bilateral aid, British consultants should be encouraged to seek a higher quota of projects financed by EC funds for ASEAN. Greater opportunities would follow for qualifying British manufacturers to bid for the hardware components of the projects.

5. SPECIFIC MARKET POINTS

Philippines a reducing dependence on oil and the development of alternative energy sources will provide substantial business opportunities in hydro and mini-hydro, and developments arising from engine fuel made up of coconut oil mixed with gas oil.

Thailand opportunies will arise in communications generally and the petro-chemical fields; also from the Eastern Seaboard Development, south east of Bangkok.

Malaysia as a result of the Malaysian Prime Minister's directive there is no doubt orders are being lost by UK but SEATAG advice to British firms is to continue to seek business except perhaps where pretender expenses are high on a project where the UK has no particular competitive advantage. There should be no over-reaction and we must not abandon the market, our customers or our agents. There should be no publicity if we win business, and we should express no more than normal disappointment if we lose. It should also be remembered that only public-sector business is formally affected by the directive.

Indonesia-the largest market in ASEAN and the largest population but falling oil revenues and less established export markets for non-oil commodities have led to the demand for counter-trade. UK industry has taken note of the objectives of the policy and is treating it seriously and sympathetically. The export market potential is still there, in particular in the fields of energy exploitation and development, communications, infrastructure and consultancies.

Singapore-the UK performs well here but there is a need for us to promote ourselves more; the Japanese achieve business too easily. We must win the Mass Rapid Transit contract. Three British consulting engineering firms in association with one American firm are in an advanced stage of negotiating their appointment as the Gerneral Consultant to the project. A go ahead is expected by the end of the year. The firms anticipate that the design-and-construct system as used in the Hong Kong project will be imposed. If British contractors lose to Japanese competition as they did in Hong Kong, there should still be good prospects for British manufacturers to supply rolling stock and electrical equipment for the MRT in due course. Again a concerted British effort in close conjunction with the British consultancy group headed by Sir William Halcrow & Partners, Mott Hay & Anderson and London Transport International, would appear highly desirable.

6. MORE CONSULTATION WITH SEATAG

SEATAG is a specialist Area Advisory Group of the BOTB. Its Chairman is appointed by the Chairman of the BOTB after reference to the Secretary of State for Trade. Its members, who are present total 20, are appointed by the Chairman of SEATAG and include senior businessmen from industry and commerce and officials of the Department of Trade, the FCO and ECGD. The Group has a responsibility to advise Government on all aspects of

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