CONFIDENTIAL
29 January 1971.
14
N
LAST
REF.
REF.
(23)
The Departent of Trade and Industry have had a report from Blackwell to the offect that your Transport Advisory Committee are in favour of the proposed underground railway, but that there are other considerations (such as the high cost of the project and other claims or Hong Kong's financial resources) to be taken into account.
From what I have heard, opinion is divided among the experts in Hong Kong whether or not to proceed with this enormous under- taking. As you know, there are people here with great practicel experience of constructing and operating underground railway systems who could give you help or advice in the process of evaluation. If you would like to consult them the DTI would be glad to make the necessary arrangements.
This will, I imagine, be the largest engineering project ever undertaken in a deperdent territory. It is arousing much interest in commercial and political circles here. For prestige reasons, if for no other, we would greatly hope that British industry would get a very good share of the orders. This is, of course, commercial matter, but I ex sure that the point is in your mind as it is in ours.
Fay I also say that should you decide to go ahead and, as we would hope, orders are placed in the U.K., we should be ready to assist with any credit required to finence the construction of the system, and in this connection we would hope that the Hong Kong Govern ent would not award contracts to non-U.K. suppliers on the strength of attractive credit offers without first giving the U.K. an opportunity to try and match the credit in question.
It would be most helpful if you could give us some indication of the thinking of the Hong Kong Government on this project.
His Excellency
Sir David Trench, C.C.7.G.,
.C., H.C.
Governi ent House,
TONG KONG
CONFIDENTIAL
(L. Monson)