જ
MARK
Ps to Mr Blaker
Bla
9/2
CONFIDENTIAL
HONG KONG MASS TRANSIT SYSTEM
M. Youke
ME.
11/2
TIA
1.
Mr Blaker will probably know that the Hong Kong Government decided some weeks ago to accept a bid from a Japanese consortium to build an underground mass transit system in Hong Kong. In spite of strong representations from here to the Governor on the personal net, the Executive Council in Hong Kong decided not to enter into competitive negotiation with an Anglo-Italian consortium on the grounds that the latter's bid did not meet their requirements for a fixed price whereas the Japanese did. Hong Kong's acceptance of the Japanese bid became public at the time.
2. We have now heard from the Governor that a letter of intent will be signed with the Japanese in Hong Kong on Monday, 11 February. This may lead to further publicity. The exchanges between Ministers and the Governor are of course highly confidential and no mention of them has been made
In public our line is that the letting of the contract for the mass transit system is a matter for the Hong Kong Government.
3.
I doubt if any further comment from Ministers will be required on this issue and am not therefore sending to Mr Blaker the lengthy telegrams on the various technical points which we have received from Hong Kong. Mr Blaker may however wish to know that the letter of intent is being signed. If there are any points he would like to discuss over the weekend, either Mr Stuart or I will be available to discuss them with him. The Resident Clerk will have our telephone numbers.
8 February 1974
CONFIDENTIAL
Youde