HOFO #25/10
RR F C O
GRS 450
CYPHER CAT/A
FM BTC HONG KONG 1818382
RESTRICTED
COMMERCIAL IN CONFIDENCE
NO
RED IN
No. 51
RE:
12 MAR 1975
HKK 21/4
Enter (24)
Понева
TO ROUTINE DOT TELEGRAM NUMBER CREDA 34 OF 10 MARCH.
X-3
2129
AKIOD
FRO
TRED
FOR FARRY OF P D FROM KINNEAR.
Mr.
3p.a
YOUR TELNO CREDA 46 AND YOUR LETTER OPG 300 OF 27 FEBRUARY:
MASS TRANSIT.
1/39
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SHORT OF ASKING THOMPSON, I CAN DO NO MORE THAN GUESS AT THE M T A'S REACTION TO THE SUGGESTION THAT THEY SHOULD COMPENSATE GEC FOR THE COST OF PUTTING A PACKAGE TOGETHER, SHOULD THE SCHEME NOT GO AHEAD. MY VIEW IS THAT THEY WOULD NOT ENTERTAIN SUCH A PROPOSITION UNLESS THEY FOUND OTHER FIRMS AND CONSORTIA MADE THIS A PRE-CONDITION FOR TENDERING. IF YOU WISH ME TO APPROACH THOMPSON, I SHALL DO SO, BUT COMING AFTER THE LACK OF INTEREST SHOWN SO FAR BY BRITISH CIVIL CONTRACTORS, DOUBT IF THIS WOULD BE ADVISABLE.
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2. IT IS GENERALLY ACCEPTED THAT IT WILL BE A GOOD DEAL EASIER TO RAISE THE NECESSARY SUPPLIER CREDIT THAN TO RAISE MONEY FOR THE LOCAL COSTS OF THE SCHEME. BUT THE GOVERNMENT'S DECISION TO GO AHEAD CAN ONLY HAVE BEEN TAKEN ON ADVICE FROM BOTH KLEINWORTS AND WARDLEYS THAT THE MONEY CAN BE FOUND. THE FACT THAT THE H.K. GOVERNMENT HAS NOT BEEN A BORROWER IN THE PAST WILL BE A DISTINCT ADVANTAGE, ALTHOUGH IT WILL HAVE TO BORROW THIS YEAR TO COVER ITS ANTICIPATED DEFICIT. BRANDTS, FOR ONE, ARE CERTAINLY INTERESTED IN FINANCING THE SCHEME AND I HAVE SUGGESTED THEY CONTACT YOU.
3. AS TO THE PROPOSED DEVELOPMENT OF THE K C R NETWORK, YOU WILL BE AWARE THAT IT HAS BEEN SUGGESTED THAT THE RAILWAY TO THE BORDER SHOULD BE ELECTRIFIED. THERE WAS A SUGGESTION THAT THE A D B MIGHT FINANCE THE ELECTRIFICATION, BUT THIS WOULD BE DEPENDENT UPON THE H.K. GOVERNMENT FINDING THE FUNDS TO DOUBLE THE TRACK AND WIDEN THE TUNNEL. THERE IS ONLY ONE SCHEME CURRENTLY UNDER DISCUSSION WITH THE A D B (THE SHATIN SEWAGE WORKS) AND MY INFORMATION IS THAT THE M.K. GOVERNMENT SEES LITTLE OR NO PROSPECT, IN PRESENT FINANCIAL CIRCUMSTANCES, OF FINDING THE MONEY FOR ITS PART OF THE ELECTRIFICATION SCHEME WITHIN THE NEXT TWO TO THREE YEARS.
4.1 MAD HOPED TO BE GIVEN THE LIST OF FIRMS WHICH HAD REGISTERED BY 1 MARCH FOR BOTH THE CIVIL AND MECHANICAL AND ELECTRICAL CONTRACTS. HOWEVER, I AM NOW TOLD THAT THIS INFORMATION, WILL NOT BE MADE AVAILABLE. ALTHOUGH CEMENTATION REGISTERED AT THE LAST MOMENT, THOMPSON IS UNHAPPY AT THE LACK OF RESPONSE FROM BRITISH CIVIL CONTRACTORS AND I THINK IT WOULD BE HELPFUL IF KINDERSLEY'S PROMISED LETTER COULD BE SENT AS SOON AS POSSIBLE. THE ONLY ADDITIONAL INFORMATION I CAN SUPPLY AT THE MOMENT IS THAT THE MITSUBISHI GROUP HAVE REGISTERED, BUT I AM NOT CLEAR WHETHER THIS IS BOTH FOR THE CIVIL CONTRACTS OR FOR THE MECHANICAL AND ELECTRICAL CONTRACTS ONLY. I TAKE IT THAT THE REFERENCE IN THE MINUTES OF THE MEETING ATTACHED TO YOUR LETTER TO BRITISH CIVIL CONTRACTING FIRMS BEING KEEN TO BID, ON CERTAIN CONDITIONS, APPLIED TO THE IMMERSED TUBE CONTRACTS ONLY.
KINNEAR
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