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Sir D. Mation 8/3
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MR ROYLE
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8/3
Abistari
CONFIDENTIAL
HONG KONG MASS TRANSIT SYSTEM
1.
(i)
I Krik Hack lovi
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in right
Please keep me
W/50
intramed,
Suring the next few weeks, as development, take place.
A.R.
On the points raised in Mr Stuart's submission below:-
I agree generally with the argumentation to the
effect that we should not respond to the Japanese approach at this stage, but wait to see how the
British consortium fare in their next round
with the Hong Kong Government. Meantime, I suggest it might be as well to give some thought to an analysis of the pros and cons of a joint consortium deal either with the Japanese or with the Europeans, taking into account the political factors across
the international board as well as the financial and
economic.
(ii) While an "independent expert" (paragraph 9 of
Mr Stuart's minute) might bring some useful influence to bear on the somewhat simplistic
attitude which the Hong Kong Government seems to be adopting at present, like Mr Wilford I am not at all clear exactly how he can be introduced into the scenario. I suggest Mr Stuart might pursue this question further with the DTI.
(iii) I agree also that for the time being we should hold
in reserve the ammunition of a Ministerial message
to the Governor. I cannot really believe that,
after the further round of talks with the various
consortia, the Hong Kong Government will find themselves in a position to make a realistic and firm comparison between the advantages of the
consortium and the multi-contract approach. time to weigh in effectively will be before the Executive Council takes stock of all this again in April. As Mr Stuart says we shall probably
7 March 1973
have to move fast when we have heard how the
talks with the British consortium have gone.
Woman Walim
(Duncan Watson)
CONFIDENTIAL
The