TELEGRAM TO HONG KONG
CC
Mr Aston BTC
Mr Stuart FCO
Mr Cotterill ECGD
Mr Edwards CRE
Mr Watson OPG
Mr Homan MME
For Haddon-Cave from Glaves-Smith, Overseas Finance & Projects
Division, DTI.
As you may know, I am co-ordinating at this end the UK industrial
interest in the Mass Transit Scheme.
Representatives of the British Group called on me on 27 February.
They said that they were very disturbed by reports they had
received from their contacts in Hong Kong that you were expecting
to get from them in the March/April discussions a near firm price for Stages 1 to 4. (These reports are in line with what we have
been receiving from Aston.)
have therefore suggested early talks with your ummultant Advisers in London, prist to meeting the March, discussion/ in Hong Kmy.) to obtain all the tuclinical
background
information and
They said they were disturbed for two reasons. First, it was
incompatible with all their discussions with you, in which
they had explained that no-one could quote a meaningful price
in the absence of specifications. They had therefore proposed
carly discussions with your consultants to agree on a fair
This would enable the British mechanism for determing prices.
Group to submit prices in October, and the contract could be
settled by the end of the year.
Secondly, the reports were inconsistent, as they see it, with
your last direct communication to them. In your letter of
15 February you said that one of the purposes of the talks in
March/April would be to discuss the possibility of substantially
advancing the date on which a reasonably firm price could be
/estimated