HONG KONG MASS TRANSIT SYSTEM
Arched for the brief
Ле
206
Rayle's wearing with the
Thp?
Governor
NOTES ON MEETING BETWEEN THE SECRETARY OF STATE AND MR HADDON-CAVE/* 6 SEPTEMBER 1973.
had
de. Mi de
Fir Haddon-Cave explained that the Governor had asked him to see Mr Walker, given the difficulty of faxing a meeting with the Governor hirself. He described the position much in the terms that we ve :lrenly hard fron ilford, 100. The steering total des hov. n1 *.
scussions ith the glo/Gorman/French group ta' well co the Italians, Jui fly, these to groups have said that the, Jal
Je willing to go Llong vi di conditions laid Ng ong Zhough they would pull out if at any time they
were not going to be able to stick to the
rice. The British group on the other hand Mey did not believe inc idea of setting a
There via hy ver, he said, clear
a & M size h t that something might the construction pople who plainly sexlogical uncertainties, no ceiling.could
Gon by
recomised that they principle of e had made it cl ceiling was po 1. divergence
De Vorken out thout
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ift
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---Gave exp
the Japsu
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long Kong
uld be allowed.
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ould recaive a
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between now
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doing the dooi
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11 by the wayside
acy serc left
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next phone). negotiation groups Ind indicated to
costing would be around
ue proporod to Jack in ters of reimbursing at bertion o this cost c. represented otemp expenditure over that coul normally be involved in
ering to
Cecillation.
nd documents.
Thecretary oltre questioned the validity of the German-led consortium end of the Italians' abilities to take
conitions talked of. He believed that if Hongong proceeded this way they would be likely to find themselves in three year's time either having to renegotiate the contract or to face the withdrawal o the contractor and negotiate afresh with new contractors. If the Japanese Government firmly guaranteed the Japaner e consortium against overrunning a ceiling price then this would be an illegal subsidy and it would become an i: sus which Britain would take up.
Haddon-Cave said that whever transpired in the building of the MTS H must not get themselves into the position where they had to increase the standard rate of tax under duress. Accordingly they would have to re-assess the scheme's viability once they were