F
C
4.
exceed HK$ 5,000 million. Paragraph III (f) of
Annex F shows that the UK is furthest away from this
figure and the Italians nearest (UK HK$ 6489 million;
Japan HK 6057 million; Anglo-French-German
HK 5775 million; Italy HK$ 5082 million). The
Steering Group contends that contract prices are at
present higher than their limit of IK$ 5,000 million
to allow for contingencies as well as for unforeseen
factors largely arising as a result of the lack of
definition of underground geological conditions.
degree of uncertainty is expected to diminish
progressively as a results of the present extensive
The
soils investigations become available. These should
be concluded by the end of February 1974 and enable a
rather firmer price to be tendered.
(iv) Separate steps are to be taken to establish the Mass
Transit Railway Corporation.
The revised timetable (paragraph 20 of the Memorandum) has
slipped considerably from the original. The most important
points are that a letter is to go to the consortia informing each
of them of the Hong Kong authorities' requirements which it has
yet to satisfy. The British consortium's letter has been received.
in London. The points raised with them are listed in paragraph
2(c) of Mr Aston's telegram number ESBOT 303. Assuming the
individual consortia wish to continue negotiations, talks will be
SECRET
t;--**
/held