2.
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improve the terms or presentation of their offer. If it is
their judgment that they can offer nothing better without a
substantial risk of loss, we may not be able to question their
commercial judgment, but would have to face the fact that this
very important contract would be won by the Japanese.
If, as
the Governor suggests, the consortium are holding back because
they believe that HMG will use political pressure on Hong Kong
to get the business for them, then we should disabuse them
while there is still time.
4.
If we tried to force Hong Kong to reject the Japanese
proposals and to accept a bid from us which they regarded as,
by comparison, unacceptable, we would have a constitutional
crisis on our hands. Some members of Hong Kong Executive
Council might well resign and the Governor's own position
would be damaged. Nor can we be sure that we would get the
Hong Kong might well decide not to proceed with the
scheme at all in its present form. We would then gain nothing
but the blame for Hong Kong's increasing traffic problem.
contract.
5.
If you think that doubt on this political point is
a factor which hinders the Anglo-Italian consortium from
reviewing their bid, I would be very willing to see Sir Arnold
Weinstock to explain the realities of the situation to him.
But we must act fast. The Governor says that there can be no
question of extending the 2 December deadline. We must take
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/this