CONFIDENTIAL
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18007773
RECEIVED"
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984
- 5 OCT 1973
PHA Elers!
PA
241
Mr Marshal (G 66/G)
Marshaly
HONG KONG: MASS TRANSIT SCHEME
1. You will wish to see the attached telegram from Lord Thorneycroft who is currently in Hong Kong to Mr Peter Walker (CREDA 124). 1 gather this has not been too well received in the DTI.
22.x
2. According to Mr Stuart the situation is now a bit more pro- mising from the British point of view. GEC seem to be arriving at a meeting of minds with the Italians. The proposed 60% of the mechanical and engineering side is acceptable to GEC and the Italians have agreed to reduce the British minority interest of the civil work to 10%, although 30% UK financing is expected. Lazards hope to be able to arrange this.
3. DTI Ministers are taking a close interest in this project. It is hoped that a viable bid will emerge from GEC and the Italians but if not, Mr Walker does not agree with Lord Thorney- croft that we should support the Anglo/Franco/German consortium. He is likely to recommend that we should approach the Governor, drawing his attention to the undesirability of giving a contract for the whole undertaking to the Japanese and suggesting that he should encourage the Japanese and British (Jardines and Hutchinsons) to rormulate a joint proposal.
SFFül-
G F Finlayson
5 October 1973
Trade Relations & Exports Dept G 1/1 G 60
Si D. Katas.
Dy
Wa Watson
I stand ready to
weigh in. I fear that the heavy are not as exthusiastic about getting the contract as we should
like Iken to se.
Mh Youde
To rel.
of
GEC succeed in suiting itus ont
wilt the Italians,' we
canot let the thing
CONFIDENTIAL Ресии
fall apart on the credit fine side, Plemi heeps
La Fund.
france
D
- Watch 9/10
Peter Marshall
8 October 1973.
Mr