HONG KONG MASU THANUNT SCHEME
Mr Grierson Director General of Industry European Commission telephoned. He had in mind to publicly suggest the formation of an MC Consortium to pursue the Kass Transit Scheme.
2.
He understood the sullene zas by no meɑne cured for the UK; he considered that with Hong Kong's increasing contacts with rope the formation of a European consortiua and placement of the business with it would make a proposal politically attractive to Hong Kong Government. Be felt that it would be important that the UK should take the lead or a dominant place in the European Consortium, such a pozition probably being favoured by Hong Kong.
3. I told Mr Grierson of the current state of discussions with HK Government and mentioned the Financial Secretary's statement that if HK favoured some ocalition of the bidding consortia they would take the initiative in proposing this, if not arranging 1b. I mentioned also the Fr noo/Garmen approaches to create an Anglo/Fram. German consortium and the intervention of GXN Contractors whose cole so far as I could see would be si,pificantly less than dominant in the proposed consortium.
4
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At this stage of discussions with HK, in the light of present HMG desire to obtain the whole business for the UK, and having regard to the recent appearance on stage of GKN Contractors I suggested that any general expres-ion by the duropean Commission promoting the idea of a European Consortium would be embarrassing to HMG and also serve to promote the recently born consortium with GEN which did not seem to accord with his conceptions of relative strengths.
5.
Ar Grierson will .flect on our tigens.ioz. any further action without speaking to us first.
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I think it unlikely he aill take
The Sacretary
00 Kr Cotterill
Mr Panton
Mr Pearson Pile
.
Ja Cogging
BC3 Divn xt 7100 3 Hay 1973