· 00 E C G D

GR 250

DESKBY 1609002

L

CYPHER .CAT A

FM B T C HONG KONG 160745Z

CONFIDENTIAL

DESKBY 160900Z

HK SGD (2) TRED

+3+

Jals

HKK 173/1

19 JAN:3

DESK USF DR

MY

PA Action Taken

INDEX

No

TO IMMEDIATE DOT TELNO CREDA 19 OF 16 JANUARY 1978

INFO IMMEDIATE E C G D (FOR COTTERILL)

FOR LIGHTMAN, CRE4.

YOUR CREDA 2 OF 6 JANUARY. VISIT OF GARDINER, CHIEF EXECUTIVE

OF THE LAIRD GROUP..

THIS VISIT WENT WELL AND GARDINER WAS PLEASED THAT WE WERE ABLE TO ARRANGE LENGTHY TALKS WITH THE GOVERNOR, FINANCIAL SECRETARY AND THE CHAIRMAN OF MTR.

2. ONE SATISFACTORY OUTCOME WAS THAT MTR HAVE ASKED METRO-CAMMELL TO SUBMIT NEW BID FOR SALE OF 60 FURTHER RAIL CARS ON WHICH MTR

HAVE AN OPTION UNTIL 31 MARCH. IMPORTANCE OF THIS OPTION IS THAT

IT REDUCES ATTRACTIVENESS FOR OUR COMPETITORS OF SECOND STAGE

REQUIREMENT OF ONLY 160 RAIL CARS.

3. GARDINER PLANS TO CALL ON SIR LEO PLIATZKY TODAY (JANUARY 16)

TO EMPHASISE NEED FOR EXTENSION OF ECGD'S ESCALATION COVER SCHEME

IN RESPECT OF THE OPTION AND THE IMPORTANCE OF REMINDING THOMPSON

THAT WE ARE READY TO MATCH ANY FINANCING OFFERS WHICH HE MIGHT

RECEIVE FROM GERMAN OR JAPANESE COMPETITORS FOR THE SECOND STAGE.

4. WE DO NOT YET KNOW WHAT CURRENCY THOMPSON WILL PREFER FOR

STAGE 2 BUT THIS MAY BECOME CLEARER DURING HIS FORTHCOMING VISIT

TO LONDON. DUE TO OPERATIONAL REQUIREMENTS AT THIS END, THOMPSON

HAS HAD TO POSTPONE HIS JOURNEY UNTIL AFTER THE CHINESE NEW YEAR.

HE WILL NOW BE IN UK THE WEEK BEGINNING MONDAY FEBRUARY 20 AND HOPES IT WILL BE POSSIBLE FOR THE LUNCH WITH YOU AND ECGD TO BE HELD ON THAT DAY. ARRANGEMENTS FOR CONTACT REMAIN AS IN MY CREDA

6 OF 6 JANUARY.

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