IDENCE

IN CONFIDENCE

RECEIVE IN REGIS

Sn Wilks Esq

British Overseas Trade Board

Department of Trade

1 Victoria Street

London SW1H OFT

128,

29 DEC 1975

23 December 1975

کالولیا سالا

B 24/12

Euler

7/1

REF

інку HKK 173/1

effer sould fee

Dim

29/12

HONG KONG MATS TRANSIT SYSTEM

1. hile in Hong Kong between 15 und 17 December I got the usual tiresome and generally ill-informed allegations that the British did not try hard enough. The Secretary for the Environment complained about British Leyland's delays in delivering buses and much was made of the alleged fact that British construction companies were not interested in bidding for a share of Hong Kong mass transit basiness.

2. I talked to Tim Kinnear who explained that this was an over-simplification. One British firm, with a Hong Kong partner, was trying hard and had a good chance of a share in the project. But it was true that the big companies such as Taylor Woodrow and Costains had said that their hands were full elsewhere. Moreover their preference for "cost plus" contracting was not

Tim had the line the Hong Kong authorities were pursuing. been in touch with OPG and understood that the Secretary of State for Trade was aware of the position. The decision not to bid had been taken at Board level. I fear however that the accusation of lack of interest in the Hong Kong market may be thrown at our own Secretary of State when he visit Hong Kon next April. I should like to be able to assure him that every- thing possible has been done and that the decision of the firms concerned makes economic sense.

3.

Tim was reasonably confident that on the E and M side there were good prospects.

cc

I A C Kinnear Esq CMG HKTC

C W Roberts Esq

CRED 4, Department of Trade

HAH Cortazzi

Rauling

AL. ENTER & REDMAN

TO ME.

24/12

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