SECRET

XCS(75)1

3.

Public Relations and Compensation

7

The Provisional Authority realised that an announcement

of the break-off of negotiations with the Japanese Consortium could generate serious political and economic repercussions and considered that these repercussions could best be mitigated by issuing a statement-

(a) that the Japanese Consortium would pay com-

pensation (on a basis subsequently to be agreed)

for breaking off the negotiations; and

(b) that the Government would proceed with an

underground railway.

SECRET

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