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RECEIVED IN REGISTRY Lo. 51 29 MAY 1974
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TO ROUTINE D OF T TELEGRAM NUMBER CREDA 31 OF 6 APRIL INFO
F C O (FOR STUART HKIOD AND CLOAKE EPD), TOKYO AND E C G D (FOR COTTERILL). D OF T PASS COPY TO CREE (MISS WELCH).
FOR ROYCE OPO FROM ASTON.
MAT,S.
H.K. DADIO HENS DULLETIN TODAY (CTU) REPEATS STORY FIRST BROADCAST THURSDAY EVENING FROM REUTERS CORRESPONDENT IN TOKYO THAT JAPANESE, NOW HAVING CONTRACT NEGOTIATIONS IN TOKYO WITH HADDON-CAVE, ARE IN DIFFICULTIES OVER RISING COSTS AND SPECULATING THAT THEY ARE CONSIDERING SUB CONTRACTING SOME OF THE WORK TO BRITISH SUPPLIERS, BRITISH EMBASSY, TOKYO, WERE SAID TO BE KEEPING CLOSE TOUCH WITH THE SITUATION BUT TO HAVE DECLINED COMMENT AND HADDON-CAVE WAS NOT AVAILABLE IN TOKYO.
THIS MAY MEAN THAT JAPANESE HAVE LEAKED COMETHING TO PRESS -OR TOLD HADDON-CAVE OF THE CONTRIVED A E C APPROACH (I HAVE · SEEN COPY OF È E G LETTER **APÜLYING" AS AGREED IN TOKYO TALKS). THIS DESPITE JAPANCOR INSISTENCE CH CONFIDENTIALITY" WHICH GIC HAVE STRICTLY OBSERVED NOT ONLY IN RESPECT OF ITALIANS BUT EVEN OF HUTCHISONS.
17 NEWS OF SUB CONTRACT DISCUSSIONS 16 AROUT TO LEAK EITHER PUBLICLY OR TO HONG KONG COVERNMENT IT SEEMS TO BIG WE SHOULD ENSURE THAT IT IS MADE CLEAR TO COVERNOR AT LEASE THAT THIS) IS FIBOULT OF JAPANESE APPROACH TO HELP THEM AND HOT MERELY THEIR GIVING US A BREAK. AFTER ALL THAT HAS SAID PUBLICLY-IN EXCO AND ELSEWHERE AKOUT DAITISH INABILITY AND CONFIDENCE IN JAPANESE. MILITY TO KEEP TO PRICE AND MEST DESIDERATA VE DHE IT TO OUR OWN IMAGE TO MAKE SURE DELUSIONS ARE NOT PERPETUATED.
ONE WAY TO DO THIS MIGHT DE VIA LORD NELSON WHO IS VISITING HENE 10-14 APRIL AND LUNGUES PRIVATELY WITH GOVERNOR ON 11TH WHEN CUBJECT MAY BE RAISED. IF WEEDON OR ARE ASKED BY OFFICIALS IN THE MEANTIME WE COULD SAY **17 ISN'T CUTE AD IT SEEMS' AND CHGEEST IT DE PURSUED WITH LOCD NELSON, WE WILL NOT COMMENT TO THE PRESS ON THIS REPORT.
WE MUST ALSO CONSIDER VUAT, AND WHEN, TO TELL ITALIANS AND HUTCHISONS.
IT POULD BE HELPFUL TO KNOW WHAT TOKY HAVE HEARD OF THE HADDON-CAVE DISCUSSIONS IN TOKYO AND WHAT LIGHT THEY CAN THROW ON THE NEUTER REPORT.
MEANWHILE IN A TV. PANEL DIBCUSSION DECORDED THURSDAY MOANING AND BROADCAST LAST (3) EVENING ABOUT THE BRITISH ECONOMY AND THE BUDGET I SAID IN REPLY TO A DIRECT AND "WITHOUT COTICE" CHESTION FROM A JOURNALIST MEMBER THAT
(A) # UNDERSTOOD THAT THE CONTRACT WAS STILL UNDER NEGOTIATION
WITH THE JAPANESE AND NO DOUBT ONE THE POINTS WAS WHETHER THEY COULD STILL DO IT FOR UNDER DOLLARS 5,000. (B) IF THE JAPANESE DO GET THE CONTRACT (T 12 BE UP TO THEM
TO DECIDE WHO MIGHT DE INVITED TO END-CONTRACT, (C) IF BRITISH SUPPLIENS WERE ASKED TO SUB-CONTRACT THERE WAS
NO DOUBT OF THEIR ABILITY TO DO ANY PART OF THE JOB. INDEED WE WERE CONFIDENT THAT THE INGLO ITALIAN CROUP, FOR ONE, COULD DO IT ALL.
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