COMMERCIAL-IN-CONFIDENCE

8. Mr Thompson suggested that it might be possible for the FCO to approach the Governor of Hong Kong to use his influence to bring about a delay on decisions concerning the Kowloon Canton Railway. This however was felt to be very much a "last resort" action as the amount of goodwill he had was limited.

9. In conclusion the following points were agreed :-

(i) Mr Wilks would talk to Mr Lippitt on the telephone to explain the latest position since he was about to fly out to Hong Kong.

(ii) Mr Royce would telephone Mr Gardiner to invite him down for urgent talks either on November 6 or 7, mainly to discuss the prospects for selective financial assistance to the group. It was agreed that

Mr Dell or Mr Charik of M Div would attend as well as Mr Simpson of IDU and a representative from IIC Div.

(iii) ECGD would be consulted by Mr Wilks to see whether there were any aspects of the Cost Escalation or Tender to Contract Schemes which could be looked at again in regard to the Met Cam bid.

(iv)

Transmark would be consulted both at the Hong Kong and London ends to see whether there was any scope for delay in submission of the Kowloon/Canton Railway bids to the Hong Kong Tender board and also whether they might be persuaded to look very carefully at the Swiss/German bid. Mr Royce would deal with this.

(v)

The possibility of asking the Governor to use his influence would be held in abeyance for the time being.

13

RP BURLEIGH

OPG

Room V/442

X 5212

November 1978

J

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