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L. Lightman, Esq., Department of Trade

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18 January, 1978

Kier and Lilley were strongly approached by the MTR to pre-qualify and indeed have done so, but of course this is not a firm commitment.

We have reason to believe that it is known internally within the MTR that our submission is correct Thompson has obviously decided to follow a hard line. This is very much in line with his reputation and the experience of most circles in Hong Kong.

My attitude is that if, in resolving our current argument, we prejudice our changes on Stage II then so be it. The MTR need British participants for financial reasons. They have been singularly unsuccessful in raising interest among British Contractors and while in the Press they put a brave face on this, it is a problem for them.

Yours sincerely,

J. C. S. MOTT

Chairman

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