RESTRICTED
4.
It is difficult to predict what Hong Kong's reaction to the British industry's letter is likely to be. The MTA would clearly find it difficult to change the ground rules at this stage without serious loss of face. If, however, the foreign interest which has been shown should be insufficient to allow the MTA to proceed, it is possible that they may be compelled to modify the contractual framework. They would no doubt also wish to see participation by the British construction companies if for no other reason than that this would make it easier for Hong Kong to obtain the export credits
and other finance on the London market.
5.
In the circumstances I do not think there is anything which we could usefully do at this stage since the DOT are of the opinion that the British construction companies cannot be moved from
the position which they have taken up. The next step will therefore be for Hong Kong to consider the EGCI's counter-proposals and for further consultations to take place between the two sides, possibly in the course of the visit to London which Mr Thompson, the Chairman designate of the Mass Transit Corporation, is expected to pay next
month.
6.
I am sorry you have not seen this before. I was under the impression that the various telegrams on the subject reached you automatically; but I will ensure you are henceforth kept in the
picture.
WILK
PL O'Keeffe
Hong Kong & Indian Ocean Dept.
I have sempalty
21 March 1975
In case you with the EGC new,
Еда
abo havent seen.
and
see no reas
to the Lager
I tease Hag Kong are making
Accotada
;
them to change.
but
The
Jagree.
адже
Hangtag gevement's new
arca
where sundly
Hay met denie
appronol
Pimal
vise to certain
21/2
commercial fedgments.
Is the Mass Transit Scheme does
dirlits, and I think we can
give
and leave STRICTEDL Budit firms is make then own
kild
2411