QCENFOØØ8
IMMEDIATE
FOLLOWING RECEIVED FROM HONG KONG DATED 1 AUG 0610Z
IMMEDIATE
CHRISTIAN TELEGRAM 52 OF 1 AUGUST CONFIDENTIAL
TO : FCO
FOR GLAVES-SMITH (OPG) FROM ASTON RPTD TO FCO FOR STUART (HKIOD) DTI PLEASE COPY TO FELL (ECGD)
MASS TRANSIT SCHEME
PA
2
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1. AT DINNER LAST EVENING GOVERNOR TOLD ME THAT EXCO HAD THAT AFTERNOON DECIDED TO GO FOR A PACKAGE SCHEME. THIS WILL BE ANNOUNCED IN LEGCO THIS AFTERNOON (1 AUGUST) AND BRITISH GROUP WILL BE RECEIVING AN OFFICIAL COMMUNICATION.
2.
IN BRIEF CONVERSATION GOVERNOR MADE FOLLOWING COMMENTS: (A) PACKAGE MEANS ALL OR NOTHING FOR, INTER ALIA, BRITISH GROUP.
(B) ''THERE WILL HAVE TO BE SOME PULLING UP OF SOCKS' (THE CONTEXT SUGGESTED THIS RELATED TO THE CIVIL ENGINEERING SIDE IN PARTICULAR).
/(C)
PAGE TWO
(C) EXPECTATION IS FOR A FIXED PRICE.
IT IS REALISED THAT SOME FURTHER INFORMATION ON SOIL TESTS WILL FIRST BE NECESSARY BUT A FIXED PRICE SHOULD THEN BE POSSIBLE PROVIDED CONSORTIUM IS PREPARED TO TAKE SOME RISKS. CLEAR IMPLICATION WAS THAT SOME ARE AND AT A REASONABLE LEVEL.
(D) COMPLETION OF NEGOTIATIONS AND CONTRACTS IN TIME TO START IN JANUARY IS NOT ESSENTIAL. ''STARTING DATE HAS NEVER BEEN IMPORTANT** BUT THE COMPLETION DATE IS. WHEN I COMMENTED THAT THE BRITISH GROUPS BAR CHARTS INDICATED THAT START IN OR NEAR JANUARY WOULD BE NECESSARY IN ORDER TO COMPLETE BY PRESENT TARGET DATE, HE SAID THAT IS THE IR PROBLEM''. (YOU WILL RECALL THAT WE HAVE HEARD PREVIOUSLY THAT JAPANESE, AT LEAST, HAVE SAID THEY COULD START LATER AND FINISH IN TIME).
(E) NEXT ROUND OF NEGOTIATIONS WILL BE IN CAPITALS BECAUSE STEERING GROUP FIND IT IMPOSSIBLE TO CONCENTRATE ON NEGOTIATION IF THEY HAVE PRESSURE OF THEIR OTHER WORK AS WELL.
2.
CIRCUMSTANCES DID NOT PERMIT MY PROBING FURTHER, E.G. TO ESTABLISH WHO ELSE IS STILL IN AND RELATIVE STRENGTHS. ASSUME THIS WILL BE ELABORATED THROUGH OTHER CHANNELS. REPORT IT THEREFORE AS GIVEN MERELY AS ADVANCE NOTICE AND WITHOUT ATTEMPTING TO INTERPRET. PRESUMABLY YOU WILL CONVEY THE GENERAL MESSAGE TO BRITISH GROUP.
ASTON.
SENT AT 01/0847Z JRK
RECD AT 01/0847Z PJ
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