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SECRET
in which improvements could be matt
299
508
(325
(326)
311/E
Ir Walker replied on
5 November (FCO telegram ho. 1:06) forming him that a team on
the 'consortium would arriva la bong Fmy on 28 November with an
D Improved offer. On 3 December the Governor sent a further persịnal
message to Mr Walker (Hong Kong telegram No. 1397).
Whilst the
Governor agreed the offer was vastly improved he indicated that he
did not think that even in this form it would suffice for the
Executive Council to accept as a valid bid. Mr Aston on the other
E hand (BTC Hong Kong telegram Creda No. 147) reporting the reactions
of the Anglo-Italian group representatives following their dis-
cussions with the Steering Board is more optimistic.
3.
Meanwhile in London, in addition to our efforts to persuade
the DTI to work for an improvement in the Anglo-Italian bid, the FCO
has been at pains to dispel what we feared was a misapprehension held
both in the DTI and by the British participants that in the final
analysis HMG through the Foreign and Commonwealth Secretary would
exert pressure on the Governor to ensure that the Anglo-Italian bid
F was successful, at any rate at this stage. Please see the Secretary
G of State's minute of 21 November and Mr Peter Walker's reply of
w/316.
(326,
26 November. You will also wish to know that the Prime Minister sent
H a minute to Mr Peter Walker on 26 November in which he said "it is
essential we should win this contract."
E 4. In Mr Aston's view (DTI Creda No. 147) the position of the Anglo-
French-German group is not clear but the impression we gain is that
they are unlikely to survive this round.
/Speaking