prior to purchasing ships thus significantly reducing the business risks and creating a very attractive lending opportunity for the banks financing the ship purchase. This basic scheme (known in Japan as a "shikumisen" arrangement) was extended when World-Wide moved into commissioning construction of new ships in 1961. By 1979, the fleet was some 202 vessels with a total of , by far and away the largest fleet in the world. Indeed, the fleet was larger than the combined fleets of the famous Onassis, Niarchos and Lemos families. In recognition of his achievements Pao was made an Honorary Doctor of Law by the Hong Kong University in 1975, and in 1976 appeared on the front cover of Newsweek magazine with the heading "King of the Sea". Pao received the Golden Plate Award of the American Academy of Achievement in 1977. He was knighted in 1978. Diversification 1978 saw the start of a severe downturn in the shipping business. Pao and his managers were quick to spot the problem and commenced a programme to reduce the fleet, especially crude oil carriers, selling ships as they came off charter. 140 ships were sold and the fleet reduced by half over a period of 4 to 5 years allowing debt to be paid off and cash resources built up. Although this was a difficult time for World-Wide, the company, through early action and conservative financial management, was able to ride the recession with little of the problems seen elsewhere in the industry. In the mid 1970s Pao had bought from Ka-shing Li (Li Ka-shing) a 10% holding in the Hong Kong and Kowloon Wharf and Godown Co. Ltd. (now The Wharf (Holdings)) and by 1977 had built this to 30%. Wharf had historically been in the Jardine Matheson sphere of influence. Friction with the Jardine camp broke out in the late 1970s over board appointments which concluded with the Pao camp being allowed two more directorships (making 4 out of a total 12). Hostilities broke out again in June 1980 with Jardines launching a cash and shares bid for Wharf. Although in Europe at the time, Pao and his team were able rapidly to put together a successful cash tender for shares to take his holding to 49% and securing control of Wharf. Pao then took over the roles of chairman and Chief Executive. Wharf gave World-Wide exposure to prime Kowloon waterfront property as