PRIORITY
EN CLAIR
FM BTC HONGKONG 1687452
UNCLASSIFIED
1973
Exter
ра
тор сору
AND
TO PRIORITY ECGD TEL EXCED 7 OF 16 FEB REPT INFO DTI FOR WATSON (OPG) AND MISS WELCH (CRE) AND TO FCO FOR STUART (HKJOD) FINLAYSON (EPD) CLAGUE-AS REPRESENTATIVE FOR BRITISH GROUP, HAS TODAY RECEIVED A LETTER FROM FINANCIAL SECRETARY DATED 15 FEBRUARY, ENCLOSING A COPY OF THE STATEMENT IN LEGISLATIVE COUNCIL AND PROPOSING FURTHER CONSULATIONS IN HONG KONG AT THE VERY BEGINNING OF MARCH'',
OPERATIVE PARAGRAPHS ARE:-
"THE PURPOSE OF MY WRITING TO YOU NOW IS TO INVITE REPRESENTATIVES OF THE BRITISH GROUP TO VISIT HONG KONG FOR FURTHER CONSULATIONS WITH THE MASS TRANSIT STEERING GROUP. IT IS HOPED THAT THESE FURTHER CONSULATIONS WOULD RESULT IN ADDITIONAL CLARIFICATION OF THE BRITISH
GROUP'S PROPOSAL, WITH PARTICULAR REFERENCE TO:
(A) THE POSSIBILITY OF FURTHER IMPROVEMENTS IN THE AMOUNT AND
TERMS OF ECGD CREDITS SO FAR INDICATED
(B) THE POSSIBILITY OF SUBSTANTIALLY ADVANCING THE DATE ON WHICH · A REASONABLY FIRM PRICE COULD BE ESTIMATED AND QUOTED FOR THE
CONSTRUCTION AND EQUIPMENT OF THE FIRST FOUR STAGES
(C) THE POSSIBILITY OF DEVISING, WITHIN THE CONTEXT OF THE PRICE REFERRED TO IN (B) ABOVE, A CONSTRUCTION SCHEDULE WHICH WOULD PROVIDE A DEGREE OF FLEXIBILITY TO MEET MINOR INTERRUPTIONS (EG DELAYS IN THE AVAILABILITY OF LAND) WITHOUT COMPENSATION
I MUST POINT OUT THAT, ALTHOUGH A DECISION ON THE APPROACH TO BE ADOPTED CANNOT BE MADE NOW WITH CONFIDENCE, THE GOVERNMENT CONSIDERS THAT A DECISION NEEDS TO BE TAKEN VERY QUICKLY IF THE
PROJECT IS NOT TO BE UNREASONABLY DELAYED. IN VIEW OF THIS, THE
COVERNMENT HAS DECIDED THAT THE STEERING GROUP SHOULD AIM TO
COMPLETE THE FURTHER CONSULATIONS WITH CONSORTIA BY THE END OF MARCH, AND TO SUBMIT FIRM RECOMMENDATIONS TO THE GOVERNOR IN COUNCIL BEFORE THE END OF APRIL AS TO APPROACH TO BE ADOPTED, } HOPE, THEREFORE, THAT IT WILL BE POSSIBLE FOR THE FURTHER CONSULATION
TO COMMENCE AT THE VERY BEGINNING OF MARCH,
/I SHOULD
Page 120Page 121