COLDENTIAL
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C
PROSPECTS THE YER'S EXCHANGE RAPE IS LIKELY OVER THE
PERIOD OF THE CONTRACT TO RISE, DESPITE THE RECENT SLATL
DROP IN ITS VALUE. SUCH A RISE WOULD PUT UP THE
JAPANESE GROUP'S PRICE IN HONG KONG CURRENCY TERMS,
THIS RICK SEEMS RELATIVELY LOWER WITH STERLING AND THE
X
IF THE HK GOVERNMENT WERE TO GIVE A GUARANTEE OF
REPAYLENT UKG WOULD BE OBLIGED PUBLICLY TO STATE THAT
THEIR CREDIT WAS NOT THEREBY COMMITTED. REACTIONS TO
SUCH A DECLARATION IN HONG KONG ARE FOR THE HKG TO ASSESS
BUT IN THE UK THERE COULD WELL BE A HOSTILE REACTION BOTH
IN PARLIAMENT AND THE PRECS IF IT BECAME KNOWN THAT THE
MIK GOVERNMENT'S CONCESSION ON THE QUESTION OF THE
GUARAITZE HAD ENABLED THE JAPANESE TO WIN THE CONTRACT,
UKG HOPE THAT THESE POINES WILL BE GIVEN THEIR ZULL
WRIGHT WIDN THE HK GOVLNNLENT DECIDES HOW THE BIDS ARD
TO BE HANDLED.
3. IF YOU GET VIND THAQ THE STEERING COMMITTEE'S
DECISION IS LIKELY TO FAVOUR ACCEPTANCE OF TIE JAPANESE
BID PLACE REPORT URGENTLY.
4. OPG ARE CONSIDERING WHAT SHOULD BE SAID PUBLICLY
ABOUT THE COMING TOGETHER OF THE BRITISH AND ITALIAN
GROUPS AND SHALL LET YOU HAVE OUR VIEWS SHORTLY.
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