CONFIDENTIAL

DRAFT LETTER TO MR ASTON, HONG KONG

HONG KONG MASS TRANSIT

Many thanks for your letters of 20 and 21 December.

thanks too for the Christmas and New Year wishes

Many

they are

of course reciprocated.

card from me to match the very decorative card I have

I am sorry you did not have a

received. I was not, however, quite sure of the

implication of the storks.

GEC

Like you in Hong Kong, we have been taking stock since

the decision of the Executive Council. Our thinking has

been directed towards salving something useful for the

main UK element in the Anglo-Italian consortium

Elliott Automation. Harry Codd of GEC- Elliott Automation

tells me that from the point of view of the future of

British mass transit engineering exports the supply of

equipment for the special coaches needed for tropical

and sub-tropical environments and the signalling and

centralised control systems are of the greatest

importance. If GEC-Elliott Automation were able to

supply all or part of the requirements under these

heads this would be most valuable to them in other

competitions, eg for mass transit systems in Singapore,

Tehran and elsewhere. GEC-Elliott Automation believe

that both technically and price-wise what they were

offering under both heads was highly competitive.

Indeed, they had the impression at earlier stages of

the negotiation that in this field GEC-Elliott Automation

were the leaders. Against this background, the thought

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