PRIORITY
GE 235
CYPHER/CAT A
FM BTC HONG KONG Ø20823Z
RESTRICTED
RESTRICTED
HKK 173 1
- 3 MAR 1978
OFFI
NG. 31
INDEX
No
TO PRIORITY E.C.G.D TELNO.EXCED 8 OF 2 MARCH 78,
@
INFO D.O.T (FOR CRE4 AND OPG).
FOR BIRCH.
MY EXCED 4: MASS TRANSIT RAILWAY.
AC 7
See 23
1. SANSOME (METCAM) AND GEMMILL (LAZARDS) CALLED THIS MORNING.
THE MTR BOARD WILL MEET ON MONDAY MORNING (MARCH 6) TO CONSIDER THOMPSON'S REPORT ON ECCD'S RESPONSE TO THEIR STIPULATIONS. GEMMILL TELLS ME THAT YOU HAVE OFFERED TO EXTEND THE TERMS OF THE OPTION COVER TO THE SUBSEQUENT 150 CARS ALTHOUGH A FIRM GUARANTEE ON HONG KONG DOLLARS CANNOT BE MADE WITHOUT A COMMITMENT
BY THE HONG KONG AND SHANGHAI ON THEIR CHARGES.
2. SANSOME IS CONCERNED LEST, IN SPITE OF ITS ACCEPTANCE BY
THE STANDING COMMITTEE, ECGD'S ESCALATION SCHEME WILL NOT HAVE BEEN FORMALLY EXTENDED BY THE TIME OF MONDAY'S MEETING. IT
WOULD BE TRAGIC IF THE MTR BOARD DECLINED TO PLACE AN ORDER FOR THE OPTION BECAUSE OF OUR INABILITY TO GUARANTEE ESCALATION COVER IN TIME FOR THEIR MONDAY MEETING. CAN I GIVE THOMPSON AN INFORMAL COMMITMENT, WRITTEN OR ORAL, IF HE CONSIDERS IT ESSENTIAL TO CARRY THE DAY WITH HIS BOARD ?
3. GRATEFUL FOR REPLY BY 2400Z FRIDAY MARCH 3. IT WILL BE
IMPOSSIBLE FOR ME TO TAKE ACTION ON THE MORNING OF MARCH 6. WE SHALL ALL BE FULLY OCCUPIED WITH THE OPENING OF THE BRITISH INDUSTRIAL EXHIBITION BY H.R.H THE DUKE OF KENT.
MARCH
EXCED DISTN.
HKYGD
TRED
MR CORTAZZI MR POSNETT
RESTRICTED
F