PRIORITY
PHER/CAT A 6P5220
FM BTC HONG KONG 141835Z
CONFIDENTIAL
CONFIDENTIAL HKK173/1
RECEIV
DECK OFF:
INDEX
Err 1978
No las
TO PRIORITY E.C.G.D TELNO.EXCED 4 OF 14 FEBRUARY 78,
INFO D.O.T (FOR CRE4).
FOR BIRCH.
YOUR EXCED 3 MASS TRANSIT RAILWAY.
M
RY Taken
See (18/20
1. THOMPSON HAS TOLD ME IN THE STRICTEST CONFIDENCE THAT AT THEIR MEETING YESTERDAY THE M.T.R BOARD RECOGNISED THAT METCAM'S PRICE FOR THE OPTION OF SEVENTY CARS WAS VERY COMPETITIVE. THE BOARD WERE ALSO APPRECIATIVE OF ECGD'S OFFER OF HONG KONG DOLLAR
FINANCING.
2. HOWEVER, AS TO TAKE UP THE OPTION WOULD REDUCE THE M.T.R'S
BARGAINING POSITION FOR THE FURTHER ONE HUNDRED AND FIFTY CARS
REQUIRED IN STAGE TWO, THE BOARD HAVE ASKED THOMPSON TO SEEK AN - ASSURANCE THAT THE METCAM PRICE AND THE ECGD TERMS WILL BE MAINTAINED IN THE STAGE TWO BIDDING. TONY SANSOME HAS INDICATED
TO ME THAT METCAM ARE PREPARED TO HOLD THEIR PRICE FOR STAGE TWO. BUT WE SHALL, IN SPITE OF THE FIRST SENTENCE OF PARA.7 OF YOUR LETTER OF 6 FEBRUARY TO JOAN KELLEY, NEED ECGD'S ASSURANCE THAT HONG KONG DOLLAR FINANCING CAN BE MADE AVAILABLE
FOR BOTH THE 70 AND THE SUBSEQUENT 150 CARS.
BUT WE SHALL,
NG ON
3. THOMPSON WILL OBVIOUSLY PURSUE THIS AT YOUR MEETING ON MONDAY. I BELIEVE THAT THE BOARD'S RESIDUAL RELUCTANCE TO PUT ALL THEIR EGGS INTO METCAM'S BASKET, CAN BE DISSIPATED BY AN EARLY POSITIVE RESPONSE TO THEIR REQUEST. THOMPSON FORESEES NO DIFFICULTY IN RAISING SUFFICIENT HONG KONG DOLLARS LOCALLY TO FINANCE ALL
220 CARS.
MARCH
EXCED DISTN.
HK&GD. TRED.
CONFIDENTIAL