GRS 400

PRIORITY

CYPHER CAT/A

FM BTC HONG KONG 061009Z

RESTRICTED

RESTRICTED

RECEIVED..

REGISTRY No. 30

-6 OCT 1975

Акк

tki 24/2

TO PRIORITY E C G D TELEGRAM NO EXCED 60 OF 6 OCTOBER INFO PRIORITY D O T CRE4 (FOR ROBERTS) OPG (FOR BRYANT).

FOR COTTERILL FROM KINNEAR:

YOUR TELEX 330 1208 TO HONG KONG MASS TRANSIT AUTHORITY.

9/x

Дів

I AM GRATEFUL FOR SUCH CONCESSIONS THAT HAVE BEEN MADE, BUT WE STILL APPEAR TO FALL WELL SHORT OF THE COMPETITION. I AM TOLD THAT ALL OTHERS HAVE NOW AGREED TO ABANDON THE STEP PROCEDURE. WHILE IT IS TRUE THAT THE JAPANESE ARE THE ONLY COUNTRY OFFERING COVER ON LOCAL COSTS, I UNDERSTAND THAT B N P IS OFFERING LOCAL CREDIT TO FRENCH COMPANIES IN U.S. DOLLARS TO COVER 20% OF LOCAL COSTS OVER A PERIOD OF 10 YEARS FROM PLACING OF FIRST CONTRACTS, AT ONE AND THREEQUARTER PERCENT OVER THE PARIS INTER-BANK OFFER RATE. THIS IS MADE POSSIBLE BY OFFICIAL SUPPORT IN THE FORM OF SPECIAL RE-DISCOUNT FACILITIES. ON CIVILS, THEREFORE, WE ARE NOT COMPETITIVE WITH EITHER THE FRENCH OR THE JAPANESE.

2. IT SEEMS MOST IMPORATNT TO ME THAT WE GET A SHARE OF THE CIVIL CONTRACTS IF WE ARE NOT TO PLACE OURSELVES AT A DISADVANTAGE ON THE E AND M SIDE. TAYLOR WOODROW HAS WITHDRAWN AND ROBARTS OF COSTAIN, WHO WAS HERE THIS WEEKEND, TOLD THOMPSON, AND SUBSEQUENTLY CONFIRMED TO ME, THAT COSTAIN ALSO ARE WITHDRAWING. EFFECTIVELY,

RESTRICTED

/THEREFORE, WE

97

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