HOFO #31/24
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CYPHER CAT/A
FM BTC HONG KONG 2418002
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31
27 OCT 1975
་-ད་ང་
TO PRIORITY DOT TELEGRAM NO CREDA 126 OF 24 OCTOBER.
FOR REDRUP OPG FROM KINNEAR.
MY TELEGRAM NO CREDA 1241 MASS TRANSIT.
List
RA
NEA
REF.
MASS TRANSIT ANNOUNCED TODAY THAT THE CONTRACT KIER WERE INTERESTED IN WILL GO TO JAPANESE FIRM, MAEDA CONSTRUCTION. I UNDERSTAND THAT DISCUSSIONS WITH THE MIDLAND BANK WERE
USEFUL BUT THAT THE BANK COULD GIVE NO CATEGORICAL ASSURANCE
AND THE BOARD OF THE MASS TRANSIT CORPORATION DECIDED, IN THESE CIRCUMSTANCES, THAT IT COULD NOT TAKE THE RISK OF KIER
GETTING INVOLVED IN THE EVENT OF FAILURE OF FRENCH KIER
HOLDINGS.
109
2. IT SEEMS PRETTY CLEAR THAT IT WAS THE NON-EXECUTIVE DIRECTORS
OF THE CORPORATION WHO WERE NOT PREPARED TO TAKE THE RISK AND I
BELIEVE THEY ACTED AGAINST THE RECOMMENDATION OF THE EXECUTIVE
DIRECTORS. THOMPSON IS STILL VERY KEEN TO SEE J.L. KIER COME IN
ON THE SECOND ROUND. HE EXPECTS TO VISIT BRITAIN IN 10 DAYS TO A FORTNIGHT'S TIME TO SIGN THE AGREEMENT FOR THE STANDBY CREDIT RAISED BY MANUFACTURERS HANOVER TRUST AND WILL BE TALKING TO MOTT OF FRENCH KIER HOLDINGS AND TO ROBINSON OF J L KIER. GREEN
OF HIP HING TELLS ME THAT HIP HING CERTAINLY HOPE TO SEE KIER
PARTICIPATE AND WILL PROBABLY BE PREPARED TO GO ALONG WITH A
FORMAL JOINT VENTURE IF THIS WILL BE OF INTEREST TO KIER. I
THINK IT IS POSSIBLE THAT THE FRENCH ALSO WILL BE INTERESTED. I HOPE, THEREFORE, THAT KIER WILL NOT BE DISCOURAGED BY THEIR FAILURE TO GET THIS INITIAL CONTRACT, THEY CAME INTO THE PICTURE
VERY LATE IN THE DAY AND WITH A LITTLE MORE TIME WOULD PROBABLY
HAVE BEEN ABLE TO COME TO A SATISFACTORY ARRANGEMENT WITH A
SUBSTANTIAL PARTNER,
KINNEAR
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