LIR GRANT ID

HKR 214

;

(2824)

CONFIDENTIAL

Reference

cc PS/Secretary of State

PS/Minister TCA PS/PUSS (T) PS/Secretary (T) Mr Denman lir Preston Mr Rooke BOTB Mr Edwards CRE Mr Ward ESP

Miss Lackey CRE Mr Hochfelder OFP Mir Savage BOTB irs Boothroyd,

Treasury

lir Cotterill ECGD Mr Stuart FCO Hd/News Dept FCO

Mr Farry OFP

HONG KONG MASS TRANSIT SCHEME

A letter has been sent to the Hong Kong Government's Steering Group for this project informing them that an Anglo-Italian Group has been formed to compete for the contract. This Anglo-Italian Group is made up from members of the separate British and Italian Groups which have heretofore competed against one, another. The formation of the Group is a response to a communication last month to the various competitors that one contender had put in a pre-emptive bid ie a general statement of the broad terms on which it was prepared to undertake the project - which broadly met the prime requirements of the Hong Kong Government. Although there has been no official statement one believes the pre-emptive bid is Japanese. Any initiative to announce the formation of the Anglo-Italian Group lies with them. Its formation is, in any case, likely to become known and questions may be asked by the press by the attitude of HMG in the UK to the replacement of the all British Group by a multi-national one.

I have agreed with the FCO that the reply to such enquiries should be that HIIG welcome the formation of the Anglo-Italian Group, whose resources, experience and particular strengths in the different fields covered by the scheme are a warrant of the Group's ability to work to the highest standards.

D N ROYCE

OFP

V/207 ext 5067

16 November 1973

PA

Mr Griselle

ii) (spy

T

6 Mr

Crowson

(HRIOD)!!

нтили

2 turn to me.

PB:"11/xi

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