Registry No.
SECURITY CLASSIFICATION
Top Secret.
Secret.
Confidential.
Restricted.
Unclassified.
PRIVACY MARKING
HKK 21/2
CONFIDENTIAL
DRAFT MINUTE
Type 1 +
FROM
To: Secretary of State for
Trade and Industry
Secretary of State
Telephone No. Ext.
Department
Copy to:
In Confidence
Prime Minister
Chancellor of
the Exchequer
Suspend
{
HONG KONG MASS TRANSIT SYSTEM
1. I am very glad that a joint UK/Italian group
is now being formed to bid for this important
contract, following the collapse of the all-British
consortium. You are concerned about the precedent
that would be created for future operations through-
out the world if the Hong Kong contract went to the
Japanese alone. I also have to bear in mind the
effect on the situation in Hong Kong itself, if
Britain had no share in what will probably be the
most important economic development this century in
our own colony
2.
The basis of the new group is that it will be
able to put in a bid to match the Japanese and to
meet Hong Kong's terms, particularly in regard to a ceiling price. Th
This is vital. Although the Governor
is anxious to secure British participation, he could
not persuade his Executive Council to give us the
business without conditions which the Japanese appear
quite ready to meet. If we tried to insist on this
I am very doubtful whether we could carry the day
without a constitutional crisis which would damage
our whole position in Hong Kong, and also without
substantial trouble with the Japanese. But once our
bid is in, and is accepted as being on an equal
/footing,
(3001) Dd. 145244 400m 8/73 L.Ltd. Gp.839
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