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amajorsourceofforeigncurrencyforBritain.TheyarealsotheroutesonwhichtheThirdWorldandtheRussiansareouttomakethebiggestinroads.MostemergingcountriesintheThirdWorldareouttocarryabiggershareoftheirtradeintheirownships.Developingcountriesregardamerchantnavyassomethingofastatussymbolthenextthingtogoforafteranationalairline.Singaporehasexpandedtheirfleetby6000percentinthelast15years,Indiaby400percent.ThechallengefromtheThirdWorldhasalwaysbeenforeseenbyourshippingcompanies.PO,forexample,whilestillouttoincreasethetotalfreightitcarries,isplanningforagradualreductioninitspercentageshareofthetradewiththenewshippingpowersoftheThirdWorld.ButPOhasnointentionofthrowinginthetowel.ThekeytacticbehinditsstrategyofholdingontotherichestsliceofthetradehasbeentomoveupmarkettogowheretheThirdWorldcannotfollow:intohightechnologyinvestment.Containers,forexample,wereanAmericaninvention,butitwasBritishshipownerswhoputupthemoneytopioneertheinternationaldeepseacontainerservice.Containerssavetime,becausetheloadingisdoneinthefactoryorwarehouse,ratherthanonthedockside,andtheyareverysecureagainsttheft;exceptforacodenumberontheoutside,thereisnoindicationofwhatisinsidethebox.Tocashinonthecontainerrevolution,youneedasophisticatedsystemofroadsandrailways,somethingthatmostThirdWorldcountriesdonothave:Andcontainershipsareexpensive,around£50millioneach.PO'shightechnology,highinvestmentstrategy,however,isfarfrombeingthewholeanswertotheThirdWorldthreat.ThedevelopingcountriesarenotouttocompetewithWesternfleetsbycommercialmeans;theywanttoimposeasetofruleswhichwillguaranteethemamajorsliceoftheshippingtrade.ThisdemandhasfoundofficialexpressionintheUnitedNationsConferenceonTradeandDevelopment,UNCTAD.TheUNCTADlinercodelaysdownthatbetweentwotradingpartners,80percentofthefreightshouldbesplitequallybetweentheirrespectivemerchantfleets.Thatleavesonly20percenttogointothenumerouscrosstraders,allfightingforashare,anditisonthesecrosstradesthatBritishlinercompaniesearn40percentoftheirrevenue.NotenoughcountrieshaveratifiedtheUNCTADcodeyettobringitintoforce.Butifitdoesbecomeuniversal,itcouldstrikeasevereblowtoBritain'slinertrade.TheIronCurtaincountriesrepresentanevengreaterandmoreorganisedthreattothefutureofBritain'slinerships,anditisathreatthatismuchmoredifficulttocounter.Russiahasexpandeditscargolinerfleetfarfasterthanthegrowthineitheritsowntradeorworldtradewouldjustify.Today,ithasthelargestlinerfleetintheworldandanotheronemilliontonsshouldcomeintoservicebefore1980.Andwithitspolicyofexcessivelylowfreightrates,theRussianmerchantnavyhasalreadymademajorinroadsintoWesterntrade.Russianowcarries95percentofitsseabornetradewiththeEECinitsownships.Moreimportant,itisbitingdeeplyintothemajorcrosstradingroutesoftheworld.EasternbloccountriesRussia,withPolandandEastGermanyhavealreadycaptured20percentofthecargotrafficonthebusysealanesoftheNorthAtlantic,almost25percentofthetradebetweenEuropeandSouthAmericaandjustabou,tthesamepercentageofthetradebetweenEuropeandEastAfrica.,HowcantheRussiansaffordtoundercutbyupto40percent?Well,Sovietshipsarenotnecessarilyouttomakeaprofit,inoursenseoftheword.Thenameofthesame,forRussianships,ishardcurrency.TheSovietUnionisbecomingmoredependentonWesternimportsfromgraintotechnologybuttheWestwillnotacceptroublesinpayment.SoRussianeedshardcurrencies,tikethedollar,themarkortheyen,evensterling,topayforitsimports.ItisthesecurrenciesRussianshipsearnascrosstraders.Itdoesnotmatterverymuchiftheyareoperatingataloss;thatcanbemadeupbytheSovietgovernmentinroubles.ButthereismoretoitthanthatfortheRussians.TheSovietmercantilemarineobviouslyactsasasupporttotheSovietnavy,verymuchasWesternfleetsusedtodo.Butthereareimportantdifferences.TheSovietmerchantfleet,whichhasnowbeenalmost20yearsingrowing,hasdevelopedthekindsofshipswhichwouldcertainlyexpandtheSovietreachwellbeyonditsperimeters.Forexample,muchoftheheavyequipmentfortheCubansandAngolanswasbroughtinSovietmerchantships.SothismercantilemarinecapabilityiscertainlyagreatadvanceintheSovietabilitytoprojecttheirpoweratsomedistancefromtheirownfrontiers.AndthisisalsopartofageneralSoviethydrographicpolicytomaptheoceansoftheworld,togettoknowtheportsand,aboveall,todeepencontactswiththestateswithwhomtheRussiansaredevelopingclosetradingties.HowcanWesternshipownersreacttoundercuttingof40percentthatwoulddrivethemoutofbusinessiftheydidthesame?Thereisalimit,ofcourse,towhatanyBritishgovernmentcandoonitsown.Shippingisanessentiallyinternationalbusiness,andBritaincanonlycounterthechallengesofthedevelopingworldandtheRussiansataninternationallevel.Butwhomcouldwecountonforsupport?TheEECissodividedaboutshippingthatitisalmostpowerlesstoact.Takethechallengeofthedevelopingworld.TheFrenchdonotmindtheUNCTADcodeonlinershippingbecauseitwouldhelpthemtoincreasetheirshareofthelinertrade;thesameistruefortheGermansandtheBelgians.SoBritaincannotrelyonconcertedEECactiononthatissue.AsfarastheRussiansareconcerned,Britain,alongwithWestGermanyandDenmark,hasbeencallingforacoordinatedresponse;themonitoringofRussianshipmovementsandrestrictionsonthenumberofRussianshipsallowedtocallatEECports.But,lastJune,theFrench,becauseoftheirRussianties,blockedplansalongtheselines.ItwillbeNovemberbeforethequestionisconsideredagain.BritishshipownersaresofarhappywiththestrengthoftheBritishgovernmentattemptstoforcetheEECintoaction.TheybelievethattheTradeDepartment,whichlooksaftershipping,understandstheirproblems.Buttheyarefarlesssureaboutothergovernmentministers,especiallythoseinthepowerfulIndustryDepartment,whichoverseesshipbuilding.ShipownersfearthatsavingjobsinBritain'sailingshipyardscomeswellbeforesavingitsmerchantfleet.Britishshipyard,sarecurrentlychurningout24vesselsforPoland.ThePoleswereluredtoBritainbythegiftofa£28millionsubsidyandthepromisethatBritishshipbuilderswouldraiseallthecredit;sowhileourshippingfleetisunderattackfromcommunistships,ourgovernmentisusingBritishtaxpayers'moneytoouttheirshipbuildingcosts.Wearedoingthesamefordevelopingcountries'fleets.IndiaisnowamajorThirdWorldshippingpower,yetBritainistobuildsixshipsfortheIndiansfornothing.Intheend,Britishcompaniescouldbedrivenoutofshippingaltogether.Some,suchasPO,havealreadymovedintootherfields,fromhousebuildingtooil.Smallershippinglinesdonothavetheresourcestodiversify.Theyfaceextinction.Andwhentheygo,sodoesahugesliceofthefewtraditionalindustriesworthkeeping.073[2/2页]