57
Yes
Mr Vale
Parliamentary Unit
PARLIAMENTARY QUESTION:
1.
HONG KONG UNDERGROUND RAILWAY
Mr Kenneth Clarke (Conservative, Rushcliffe) has
tabled a question for written answer on 10 July, about the awarding of contracts for construction of the "Hong Kong Main Railway". We have consulted Hong Kong who, like us, believe that Mr Clarke must be referring to the Mass Transit Railway (MTR).
2.
When this scheme was originally put to tender in 1973, the Hong Kong authorities eventually decided to accept a pre-emptive bid by a Japanese consortium to complete the work at a fixed price of HK$5,000 million. This caused much resentment in industrial and financial circles here, particularly as the Japanese subsequently reneged on their obligations. The project has now been revived in a modified form and it is only natural that the placing of contracts should be followed with a close and probably critical interest by British firms. In fact, British firms have decided not to register an interest in the civil construction. This partly arises from the experience of Costains with the Cross Harbour (road) Tunnel where they made a loss of £1 million but it may also be that they had objections to the Hong Kong proposal to proceed by a multi-contract system which British contractors consider would result in wasteful competition, particularly for scarce and skilled labour. British contractors have, however, shown considerable interest in the
mechanical and electrical work and no less than eight such companies have registered, including a consortium headed by GLC (Transportation)/ GEC (Hong Kong).
3.
It has still to be decided whether the Hong Kong Government will proceed with the construction of the MTR.
So far,
though/tenders have been invited, no contracts have been awarded.
This stage is not likely to be reached until the autumn.
some
144.