MR BRYANT
OPG
COMMERCIAL IN CONFIDENCE
Reference.........
cc Mr Fell ECGD
Mr Stuart FCO Miss Lackey CRE
Mr Aston, Hong Kong
HONG KONG MASS TRANSIT
Mr Codd of GEC-Elliott Automation today told me, with reference to the possible discussions between the German-French-British group and the Anglo-Italian group reported in Hong Kong Christian telegram no 58, that GEC had consulted their Italian colleagues and had advised their representatives in Hong Kong that for the moment they did not wish to enter into discussions with the German-French-British group. This would not preclude the possibility of such discussions if the negotiations with the Japanese were to fail, the Anglo-Italian consortium were to be recalled and the possibility of letting sub- contracts for particular bits of equipment arose. On the face of it, however, the Anglo-Italian group believed that they covered all the disciplines needed for the completion of the contract, that they had been well ahead of the German-French-British group in the last round of negotiations and that there would be no advantage to them in giving away information about their bid.
I mentioned to Mr Codd Mr Aston's doubts about the wisdom of any discussions. Mr Codd said that he shared Mr Aston's views.
I took the opportunity of this conversation to confirm with Mr Codd that we had included in the brief for Sir Geoffrey Howe's meeting with Mr Nakasone a suggestion that, if opportunity offered, he might see whether there was any Japanese interest in discussing sub-contracts for GEC-Elliott Automation. I said that a similar brief had been given to Mr Chataway for his visit to Tokyo. Mr Codd commented that GEO's interest would of course be circumscribed if the Japanese wore to try to oblige GEC-Elliott Automation to meet Hong Kong Government requirements which for some reason the Japanese could not meet.
DNikeya
DN ROYCE
OFP
V/207 ext 5067
14 January 1974
370 0.158976 30M T P. Gp €52