PRIORITY
CYPHER/CAT A
GPS 480
FM WASHINGTON 991543Z
CONFIDENTIAL.
CONFIDENTIAL
в
Bid 6
Si D Walon In Wilford
HXX 21/4 2
Дли
1973
96
FA
10.W
TO PRIORITY ECG) TELNO EXCED 17 OF 9 APRIL/INFO ROUTINE TOKYO AND BTC HONG KONG (FOR ASTON).
FOR FELL (ECGD) FROM MASON: MASS TRANSIT.
ON 6 APRIL I MET OZU AT LUNCH AT THE AMBASSADOR'S AND AGA IN FOR
DINNER IN THE CLUB YOU KNOW. HE WAS FRANK AND FORTHCOMING.
2. ON THE STATE OF THE NEGOTIATIONS OZU SAID THAT THE JAPANESE
CONSORTIUM HAD GATHERED IN HONG KONG, THAT THE ITALIANS WERE NOW
STRONG RUNNERS HAVING INDICATED THAT THEY WOULD OUTBID ANY TERMS,
PRICE OR INTEREST RATE THAT ANY ONE ELSE OFFERED. I SAID THAT WE
HAD RECEIVED NO SUCH IMPRESSION OF ITALIAN DETERMINATION. 1
EXPLAINED MY MISGIVINGS ABOUT THE POSITION SLIPPING, AND WAS ABLE
TO REVEAL THAT HADDON-CAVE'S VACATION WAS A CRUISE TO AUSTRALIA
NOT, AS OZU HAD ASSUMED, A TRIP TO EUROPE.
3. OZU SAID THAT MITI WERE (WAS) STILL QUITE OUTSIDE THE JAPANESE
CONSORTIUM'S NEGOTIATIONS, ALTHOUGH THEY VIEWED THEM WITH QUOTE
A SYMPATHETIC MOOD UNQUOTE. THEY WERE DISCUSSING WITH THE
CONSORTIUM THE PROPORTION OF EVENTUAL JAPANESE EXPORT BANK
FINANCE, WHICH MIGHT BE 60 PER CENT, 49 PER CENT BEING RAISED
COMMERCIALLY IN JAPAN, INTEREST RATES MIGHT BE QUOTE AROUND UNCUCTE
6 PER CENT. CZU SAID THAT A SOLUTION TO THE BANK GUARANTEE PROBLEM WAS NOT YET TO HAND.
4. ON A JOINT UK-JAPANESE OPERATION, OZU CONTINUED TO SHOW GREAT INTEREST, MAKING THE POINTS MADE TO YOU ABOUT JAPANESE POLITICAL UNWILLINGNESS TO TAKE THE WHOLE CONTRACT AND THE PROBLEM OF HOW
EVENTUALLY TO DIVIDE THE CONTRACT UP BETWEEN TWO PARTNERS.
REFLECTING I WOULD JUDGE MORE THAN HIS PERSONAL VIEW, HE SPOKE
OF THE DESIRABILITY OF THE BRITISH LAUNCHING THE IDEA OF A JOINT
CONSORTIUM WITH THE HONG KONG GOVERNMENT BEFORE THE NEXT ROUND
AND BEFORE HADDON-CAVF WENT ON LEAVE. HE WAS QUITE CLEAR UNDER-
STANDABLY THAT IT WAS UP TO US TO TAKE THE INITIATIVE. IN REPLY TO QUESTIONS HE ELABORATED THE TIMETABLE TO INCLUDE A FURTHER ROUND WITH ALL, WHICH HE THOUGHT COULD NOT BE AVOIDED, LEADING TO AN AWARD IN JULY-AUGUST. PERHAPS SIGNIFICANTLY, HE SPOKE OF THE DIFFICULTY WHICH WOULD ARISE IF ONE BIDDER (PERHAPS HE MEANT ME TO CONCLUDE THE ITALIANS) MADE A MINNING LOW BID AT THE REGINNING
OF MAY,
CONFIDENTIAL
/5. I DID