KW Cotterill Esq

Export Credits Guarantee Department

Aldermanbury House

Aldermanbury

LONDON EC2P 2EL

Treasury Chambers Great George Street

London SW1P 3AG

140

Telephone 01-930 1234 ext 288

3 July 1973

108

HONG KONG MASS TRANSIT SYSTEM

Thank you for your letter of 2 July setting out the latest position in the negotiations which we discussed by telephone. It would be extremely helpful at this stage to have clarification of the following points:

a.

What are the relative financing offers of the 4 consortia still in the running?

b. Are the proposals you are now making calculated to secure the contract, or is it possible that there will be a further round of negotiations at which further concessions on the credit terms will be urged on HMG?

C.

What is your calculations of the preference implied by your latest proposals?

I should be glad to have Departments' comments on the proposals in writing, if possible by noon on Friday. It may not be necessary to call a meeting if you can provide the above information.

cc.

FW Glaves-Smith Esq

G F Finlayson Esq, Miss MJ Lackey

A L Ryan Esq

A C Stuart Esq

TJ Wilshire Esq

(R JONES)

Department of Trade

and Industry

Bank of England

Foreign and Commonwealth Office

Overseas Development Administration

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