CONFIDENTIAL

IMMEDIATE

CYPHER CAT A

GRS 110

FROM ROME Ø51623Z

CONFIDENTIAL

DESKBY 051733Z

HKK 21/4 |

329

TO IMMEDIATE FCO TEL NO 863 OF 5/12/73 AND SAVING TO MILAN,

YOUR TEL NO 473 AND TELNO 861.

HONG KONG MASS TRANSIT SYSTEM.

INTERMETRO WERE EVIDENTLY NOT FULLY INFORMED ON LATEST DEVEL-

OPMENTS, THEY HAVE JUST TELEPHONED US TO SAY THAT AT THE REQUEST OF THE HONG KONG AUTHORITIES THEIR OFFICIAL REDUCED THEIR BID

TO INCLUDE ONLY 5% COST ESCALATION PER ANNUM INSTEAD OF 10%. ANYTHING ABOUVE 5% WILL BE FORCE MAJEURE.

2.

THE ANGLO-ITALIAN BID IS THEREFORE NO LONGER 5876 MILLION HK DOLLARS. THIS SEEMS TO FILL THE REQUIREMENT. INTERMETRO'S OFFICIAL HAD AUTHORITY FOR SUCH NEGOTIATIONS ON THE SPOT.

3.

INTERNETRO'S REQUEST FOR FURTHER FOUR MONTHS BEFORE FİNAL BĪD STILL STANDS. THEY HAVE BEEN IN TOUCH WITH THEIR UK PARTNERS

THIS AFTERNOON.

HANCOCK.

FILES

IKIOD TRED

PS/MR ROYLE SIR D WATSON HR YOUDE

COPIES TO:

PS TO S-OF-S

DTI

MR ROYCE

DTI

CONFIDENTIAL

(335.

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