AVED IN
CONFERY No.51
IMMEDIATE CYPHER/CAT A
GPS 1630
FM HONG KONG 010545Z
CONFIDENTIAL
- 1 AUG 1973
NKK 214
TO IMMEDIATE F C O TELO 842 OF 1ST AUGUST, 1973.
PERSONAL FOR SIR DUNCAN WATSON FROM GOVERNOR.
PA
MASS TRANSIT RAILWAY.
124.5411
EXECUTIVE COUNCIL YESTERDAY TENDERED THE ADVICE SOUGHT IN PARA-
GRAPH 24 OF MEMORANDUM XCS(73)8 ALREADY SENT TO YOU.
2.
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LETTERS HAVE TODAY ISSUED TO EACH CONSORTIUM INVITING THEM TO
CONSIDER OUR REQUIREMENTS AND ADVISE US BY 23RD AUGUST NEXT
WHETHER THEY WOULD BE PREPARED TO ENTER INTO NEGOTIATIONS WITH THE
STEERING GROUP WITH A VIEW TO DEVELOPING A SUITABLE CONTRACT.
3.
HADDON-CAVE MADE THE FOLLOWING STATEMENT IN LEGISLATIVE COUNCIL
THIS AFTERNOON.
" SIR,
FOUR WEEKS AGO, WHEN REPLYING TO A QUESTION FROM MY HONOURABLE FRIEND MR. JAMES WU, I SAID IN THIS COUNCIL THAT THE MASS TRANSIT
STEERING GROUP WAS ABOUT TO SUBMIT RECOMMENDATIONS TO EXECUTIVE
COUNCIL ON A SERIES OF IMPORTANT AND DIFFICULT QUESTIONS CONCERNING
THE MASS TRANSIT RAILWAY: INCLUDING, FIRST AND FOREMOST, THE QUESTION
WHETHER THE PROJECT SHOULD BE DEALT WITH ON A SINGLE-CONTRACT
OR MULTI-CONTRACT BASIS.
I CAN NOW REPORT TO HONOURABLE MEMBERS THAT, HAVING CONSIDERED THE STEERING GROUP'S RECOMMENDATIONS, THE GOVERNMENT HAS DECIDED
IN PRINCIPLE TO ADOPT A SINGLE-CONTRACT APPROACH, THAT IS TO SAY,
TO AWARD A CONTRACT TO ONE CONSORTIUM, SELECTED BY COMPETITIVE
NEGOTIATION, FOR THE COMPLETE CONSTRUCTION AND EQUIPMENT OF THE
FIRST FOUR STAGES OF THE MASS TRANSIT RAILWAY. I EMPHASISE THE WORDS
'IN PRINCIPLE' BECAUSE AN ACCEPTABLE CONTRACT HAS YET TO BE NEG-
OTIATED AND CONCLUDED. AND, TO THIS END, THE GOVERNMENT HAS DECIDED
THAT THE STEERING GROUP SHOULD FORTHWITH ENTER INTO FURTHER EXCHANGES
WITH THE FOUR CONSORTIA WHO HAVE PUT FORWARD SINGLE-CONTRACT PROPOSALS, WITH A VIEW TO OPENING UP ACTUAL NEGOTIATIONS WITH THEM AND, ULTIMATELY, TO SELECTING ONE OF THEM FOR THE CONTRACT /NOW THAT
CONFIDENTIAL
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