CONFIDENTIAL
Reference
Wodn
во го
successor
my
(? 29 Jay) espire 3.
نام
3
10 -VI
ihu. Stuent
mag
have
covened the
point during
his
hump
minit to Hong
Kong. I will
discuss on his
metuun from
leave.
во.
TH
20 Aug.
Now
minute of
20 July
pant B.
p.c.
A Stuart Esq (HKIO)
n
Goodfella
thanks
HONG KONG:MASS RAPID TRANSIT SCHEME
be
1. We have discussed the possibility of what our reaction might be were the Japanese to wish forced to raise their intended price for constructing the Hong Kong underground railway.
2. In this connection you will wish to see the attached letter from Mr McGhie in Tokyo and its enclosure. You will note that the cutting (from the Asahi Evening News), suggests that the Japanese consortium may now be giving consideration to raising the price by a very considerable percentage. In addition the article states that Mitsubishi have asked the Hong Kong Government for changes in the specifications. This strikes me as being a likely way the Japanese may well attempt to mitigate their losses. To the outsider the Japanese could complete the underground at the offered price, or at any rate by a less remarkable increase, through lowering standards throughout as suggested in the article and for example, leaving out air conditioning etc. may wish to ask the Governor about this when he is here since there would clearly be a strong reaction in DOT and British industry, (who would be bound to find out) if this occurs. I think we should make
You
plain to the Hong Kong Government the problem that will be created for us if there is any divergence from the terms embodied in the original Letter of Intent.
3.
You may also wish to remind the Governor that he has not responded to the question of the Hong Kong Government's guarantee to the Japanese. You will recall that in our telegram no 153 (folio 18) we asked for the Governor's advice on timing in respect of our disclaimer over this. We had intended to raise this in connection with the draft letter now suspended, which you asked me to draft in connection with the Japanese approach to UK industry over sub contracts.
5 June 1974
M A Goodfellow
Hong Kong and Indian Ocean Department
DD 145177 219242 500M 4/73 GM 3643/2
CONFIDENTIAL