Mid-Stream Surcharge

7 January 2002 Our Ref: SN/35/CC Mr James Shuen Secretary Hong Kong Mid-Stream Operators Association Lot No. KIL 11011 West Kowloon Reclamation (Phase 1) Sham Shui Po Hong Kong Dear Mr Shuen Mid-Stream Surcharge I refer to my letter of 7 December 2001 on the subject. This Chamber believes that, at this stage, a successful resolution of the controversy surrounding the surcharge hinges on addressing the issue of payment collection. As both the shipping lines and shippers have pointed out, the existing mechanism of imposing the collection of fees on container drivers is a major departure from conventional practice and it is understandable that drivers should vehemently oppose such an arrangement. I would therefore strongly urge that the Mid-Stream Operators Association return to the customary and much less complex fee settlement structure of shipping lines interacting with shippers that has served and continue to serve all parties so well to date. I understand that shipping lines are prepared to lend a hand in restoring normal contractual relationships that will relieve drivers of the responsibility to pay the surcharge and would suggest that your association work with the parties concerned to bring about a quick settlement. Yours sincerely Christopher Cheng Chairman CC/SN/wc