(16413) Dd.244353 100m 6/72 G.W.B.Ltd. Gp.863

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry No.

SECURITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

In Confidence

CONFIDENTIAL AND PERSONAL

PERSONAL

DRAFT

To:-

His Excellency

Sir Murray MacLehose

KCMG MBE

Governor

HONG KONG

Type 1 +

FROM

Sir D Watson

Telephone No. Ext.

Department

MASS TRANSIT RAILWAY

1.

Thank you for your letter of 16 February and

for the copy of the ExCo paper, which has now

arrived. We will of course treat these papers with

due discretion, bearing in mind that they were sent

to us as the administering power and not for British

commercial advantage.

it

2. We have, however, hoisted in the message that a

decision for or against a consortium approach has

to be taken before the end of March and that the

consortium may have to get close to a fixed price

package if they are to keep abreast both of the other

consortia and of the alternative multi-contract

approach. We have passed on the message to the

consortium that they would be wise to send their

decision takers, rather than their number twos, to

the remaining rounds of discussions.

3. We have also noted your point that some of your

experts do not go along with the preference for

multi-contracts expressed in the ExCo paper.

As an

outsider's comment, however, I do slightly wonder

whether the form which the paper has taken does not

to some extent preempt subsequent discussion and

make it very difficult for an honest consortium bid

It seems that the onus is now on each

to succeed.

/of the

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