CONFIDENTIAL

68

Mr. Stuart

(H.K.I.O.D.)

HONG KONG MASS TRANSIT SYSTEM

1.

Mr. Hugo Kindersley of Lazards rang me this morning to say that he was most disturbed by a report he had received of a meeting on 14 March between representatives of the Treasury, the Bank of England and the Department of Trade and Industry about the attitude that E.C.G.D. should take towards the Consortium's proposals. He understood that in essence officials had considered that the project involved the E.C.G.D. representative's brief at the talks in Hong Kong next week would be very negative because of the very large sums and the risks involved.

2.

Mr. Kindersley said he hoped that the F.C.O. would be able to influence this attitude if it became apparent during the forthcoming talks that the Consortium's proposals had little chance of success under the conditions imposed by the .0.G.D.

16 March 1973

cc. to: Sir D. Morris

Mr. Wilford

Mr. Whitehead

Ay Danis pp

D. B. C. Logan

Mr. Finlayson (Export Promotions Dept.)

CONFIDENTIAL

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