You will know of

were invited on an ordinary basis we think it highly

likely that the Japanese would be more competitive

than our own firms. No bids of any kind have yet been

invited or submitted.

her

When the Prime minister saw Mr Fukuda on 8 May

the Prime Ministers he referred to the new power station project in Hong

bemarks tot Mr. Fukudy on on 8 may aboook the power struction project

Courtel. no 255 paru 3) and of thy Japanese Ambuistutors Subsequent

Conversation wigby Contazzi Cour

telegramus No 254

paru 4

Kong and the British interest in securing this business

He said that the British fims concerned were frightene

that the Japanese would undercut them on credit terms

or in other ways, and asked if Mr Fukuda could ensure

that any Japanese tender "did not cut any corners".

Mr Fukuda replied that he was not aware of this case,

and appeared to ask Mr Hatoyama to look into it.

Subsequently the Japanese Ambassador spoke to Cortazzi

(our telno 254).]

2

You should not take any initiative on this case,

but if the Japanese raise it with you, you should say,

as Cortazzi did to Kato, that HMG attaches the greatest

importance to British firms winning orders for new

equipment, particularly power generating equipment,

in Hong Kong, and explain the importance of the

"British dimension" in Hong Kong • You should not,

however, ask in terms that the Japanese Governrsat

should intervene with their own industry.

4

would

1

Grateful if

pproach he Jajana

o should be interested to tear or sur approach

pade to you by the Japanese Govern.out.

maysake to you.

3

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