VE KUX
ILL HAVE TO CHASE UP TO HE
IT
TOP COPY
(HKLOD]
R124
NO DISTRIBUTION
00 F C O
CYPHER/CAT A
FM HONG KONG 220945Z
SECRET
HKK 21
21/4
EART
Arr
RLI.
(257)
TO IMMEDIATE F C CTELNO 1216 OF 22HD CCTOBER, 1973.
PERSONAL FOR SIR DUNCAN WATSON FROM HADDON-CAVE (NO DISTRIBUTION EXCEPT ON WATSON'S INSTRUCTIONS)
Mr Goodfellow I have spoken to
d.
LOK
23.x
MASS TRANSIT RAILWAY.
KINDERSLEY TURNED UP UNEXPECTEDLY IN HONG KONG ON SATURDAY EVENING EN ROUTE FOR JAPAN FROM KOREA (HAVING LEFT HERE FOR TAIWAN LAST SUNDAY, 14TH) IN ORDER TO SOUND ME OUT ON HIS IDEAS AS TO THE FORM OF A COUNTER-BID FROM THE NEW ANGLO-ITALIAN CONSORTIUM.
AS THESE IDEAS HAVE YET TO BE PUT TO THE CONSORTIUM AND MAY NOT BE ACCEPTABLE TO THEM OR TO E.C.G.D., THEY SHOULD NOT BE MENTIONED AT THE MEETING 1 UNDERSTAND YOU ARE HAVING WITH THE D.T.I. TODAY. (MONDAY).
2.
THE PURCSE OF THIS TELEGRAM IS TO ACQUAINT YOU WITH THIS CONVERSATION AND TO ASK YOU TO PASS A MESSAGE TO KINDERSLEY. I MAY NOT HAVE GOT IS IDEAS QUITE STRAIGHT BUT, BRIEFLY, THEY ENVISAGE MATCHING THE JAPANESE CONSORTIUM'S PRE-EMPTIVE BID,
WICH WE HAVE VALIDATED DISPITE THEIP INSISTENCE ON A HONG KONG GOVERNMENT GUARANTEE, WITH A COUNTER-EID WHICH WOULD SEEK TO BUY US CFF THE CEILING PRICE CONCEPT IN FAVOUR OF A TARGET PRICE CONTRACT
Y OFFER. AN EQUITY CONTRIBUTION EQUAL TO THE GOVERNMENT'S (DOLLARS OX, MILLICH). THE CONCORTIUS PROFIT WOULD BE FOUND FROM
EACH OF THE TARGET MATEU milivu bf -The OVERALL TARGET PRICE
THE EVENTUAL SALE OF THEIR EQUITY PARTICIPATION TO THE POOLÍ. TO BLCURE THAT AN OFTRAL FARE STRUCTURE WAS ADOPTED BY THE
ASU TRANSIT RAILY CORPORATION AND THAT, THEREFORE, THE PUBLIC CROLL DE INTERESTED IN TAKING UP THE COMSORTIL'S EQUITY PART- ICIPATION, the couwrew-STS. YOULD SPECIFY THAT THE STEERING GROUP 'S
FROGEST IDEAC
CHECKED OUT BY INDEPENDENT CONSULTANTS.