188

2357

Flpb

JL.MA

Mr King, ODM

1947

CONFIDENTIAL

May 21

12)

HONG KONG

1. You minuted on your copy of my submission of 27 November to ask whether the hope that aid for Hong Kong might promote our commercial interest in a number of important contracts

had in fact been realised.

2.

What was in mind in 1972 was very largely the Mass Transit contract for an underground railway in Hong Kong. As you may know, the Japanese were able to offer a fixed price for this very large contract, and although all concerned tried to make it possible for the UK to stay in the running, this factor, in an inflationary situation, was enough to sway the decision in favour of Japan.

3. Nevertheless, having promised the aid publicly and at Ministerial level, I would strongly advise against any suggestion of cancelling it. This would have very unfortunate effects on the whole range of British interests in Hong Kong.

Br Wade - Blou

As

2 December 1974

Сс

Mr Male

Mr Williams, ODM

Munster

ACSL

A C Stuart

Hong Kong & Indian Ocean Dept.

pm.61x

In Huyfell Or Largand the Male

&

RECHVID IN PRIVATE CITICE

De lich with purines Us.

We shivusly count

4 DEC 1974

ACKD.

cancel the

offer

but it shows

the

uwisdom of using

and

for spacious marind advantage.

ammereich

Indeed.

Абик

CONFIDENTIAL

4/12

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