CONFIDENTIAL AND PERSONAL

On presentation, we have instructed the Trade Commissioner, if

asked to comment, to say we are disappointed, though this had to

be a local commercial decision; the United Kingdom Government

remain confident that the Anglo/Italian Consortium made a highly

competitive offer. We have, however, always been aware that

on the civil engineering side the competing groups had still

to receive all the technical information which both the Italian

and British firms concerned deemed necessary if they were to

commit themselves to a fixed price within the ceiling set by the

Hong Kong Government.

It is, of course, possible that the detailed negotiations may

yet break down, and I have asked my officials urgently to consider

how we might most effectively gain something for the UK by helping

UK firms to secure sub-contracts on the mechanical and electrical

side even if the lead for the whole job does go to the Japanese.

I will keep you informed.

I am sending a copy of this minute to the Chancellor of the

Exchequer and to the Parliamentary Under Secretary at the

Foreign and Commonwealth Office.

Department of Trade and Industry

1 Victoria Street

London SW1H OET

14 December 1973

Dejall

PW

CONFIDENTIAL AND PERSONAL

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