CONFIDENTIAL
in our minds has been that if the competition cannot be
re-opened
and on the face of it this is unlikely whatever
then the thing to go for is some
we may say in public
You can
sub-contracts from the main Japanese contractor.
imagine that we have taken particular note in this
context of the rumours that Jardine Matheson may have
made an informal approach to GEC. We have heard nothing
of this at this end though I did pick up a whisper that
at least Kleinwort Benson are in some way concerned with
the financing side of the Japanese proposals. No doubt
Kleinworts would be seeking to bring together finance from
sources other than those which are available for UK
exports. If, however, the Japanese have really made an
offer from which they might have been glad to withdraw
in the light of present inflationary trends, there is
always hope that for some parts of the System they could
be interested if the UK, with a competitive parity for
sterling and favourable credit terms, were to supply some
of the more expensive items.
We have no illusions that it would be easy to interest the
Japanese in doing a deal of the kind I am suggesting.
Tactically, we had thought of including a suggestion in
the Prime Minister's brief for the visit which has now
been postponed that he should suggest to the Government of
Hong Kong that it would be in the broad interests of both
of Her Majesty's Governments if the Hong Kong Government
were to use some influence with the Japanese to persuade
them to place some sub-contracts with the UK. Now that
the Prime Minister is not going, we would welcome your
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