Mrs H Boothroyd Treasury Chambers Great George Street London s.11 3.0
CONFIDENTIAL
Спотова
Miss Kept prek
10 July 1973
(1530)
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рык
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11/2
No Cortfellys on?
OR 3-12
3017
Pones (155) Pro (15
HONG KONG MASS TV MSITY THE
1. In your letter of 9 July you ask for an assessment of the political risks associated with the first four stages of the Mass Transit Project.
2. as you say the political implications of the whole project werc examined in the Sccretary of State for Trade
nd Industry's paper of 25 september, 1972. In his letter to the Chancellor of 28 September, 1972, Mr Royle, on behalf of the Foreign and Commonwealth Secretary, said that he agreed with this assessment.
3. The political situation in relation to China has not changed since September. Indeed the outlook is, if anything, somewhat brighter. It follow that, since we were prepared then to support the whole project with repayments running well beyond 1997, we continue to support the first four stages with their earlier repayment period.
4. On the immediate question of our attitude to the COD credit proposals, you have Andrew Stuart's letter of 4 July. e also understand that the Secretary of State for Trade and Industry has written to the Chancellor on the subject. My own Secretary of State fully supports Mr Walker's contentions.
cc KW Cotterill Esq
SCG)
FGlaves Smith Esq
STI
RE Radford Esq
FCO/COA
AL Ryan Esq
B/5
CONFIDENTIAL
K M Wilford