CONFIDENTIAL

views on the tactics for implanting this idea in the minds

of the Executive Council. Most probably this would best

be done on a Government to Government net but timing will

obviously need to be carefully considered. One

possibility might be to wait until the Japanese and the

Mass Transit Authority are locked in difficlt negotiation.

If, for instance, the Japanese were seen to be wriggling

over the price both sides could conceivably welcome some

kind of UK participation.

Another tactic altogether might be to try to work this one

through Jarine Mathesons though I would not wish you to

make any soundings without consulting us again. We should

need to have tied up the arrangements very closely with

GEC-Elliott Automation at this end.

indeed none of the

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A third method of approach which could well be used in

parallel with either of the other two

tactical approaches is mutually exclusive would be to

tackle the Japanese in Tokyo. As you know, we have the

beginnings of a dialogue with them about participation

in projects in third countries. A discussion of

participation in this project might be fitted into this

context. ECGD also have had a number of indications from

their Japanese opposite numbers that they would be

relieved to see the UK insuring some of the risk. On

this we would welcome the advice of Tokyo to whom I am

sending a copy of this letter with a copy of your letters

to me.

They have, I think, enough background otherwise.

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