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PP BTC HONG KONG
GR 375
NKKC 177311
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RECEIVED IN REGISTRY NO. 51
16 FFR 1539
DESK OFFICER
REGISTRY Action Taken
PA
INDEX
No
MSI I
An 10/2
4
CRE / TRADE:
HIGHC) TRE)
RESTRICTED
FM D.O.T. 051525Z FEB 81
TO PRIORITY BTC HONG KONG
TELEGRAM NUMBER CREDA 28 OF 5 FEBRUARY.
FROM DURIE FOR MARCH
NIR
YOUR CREDA 32: THE ISLAND LINE
.
1. AT MY MEETING WITH SANSOME (MET CAM) AND LAZARDS, SANSOME SAID THAT THOMPSON HAD WRITTEN EXPRESSING THE M.T.R.'S WILLINGNESS TO NEGOTIATE A CONTRACT FOR THE SUPPLY OF 160 TRAILER CARS AND CAR TRAINS THAT WILL BE NEEDED AS A RESULT OF THE EXTENSION. MET CAM AND LAZARDS (WHO PRESUMABLY WILL CONTINUE TO ACT AS BANKERS)
ALTHOUGH
DO NOT UNDER-ESTIMATE THE MANY POTENTIAL PITFALLS OF A NEGOTIATED CONTRACT THEY WILL INDICATE THEIR KEENESS TO PROCEED ON THIS BASIS. AS YOU KNOW, SANSOME WILL BE IN HONG KONG NEXT WEEK FOR ONE OF THE REGULAR M.T.R. MEETINGS AND WILL DISCUSS FURTHER WITH THOMPSON AT THE TIME. WE WILL TAKE STOCK WITH HIM AND LAZARDS, ON HIS RETURN. TIMING WILL BE CRUCIAL. SANSOME WOULD LIKE THE CONTRACT FINALISED IN THE SPRING. HE WILL GIVE YOU A FULLER ACCOUNT NEXT WEEK.
2. ONE COMPLICATION HOWEVER, IS THAT IF, AS SEEMS LIKELY, A NEGOTIATED CONTRACT FOR MET CAM WOULD REQUIRE SPECIAL FINANCING TERMS,
WE WILL HAVE TO TAKE ACCOUNT OF THE LIKELIHOOD THAT SIMILAR TERMS WILL NEED TO BE APPLIED TO THE OTHER POSSIBLE NEGOTIATED CONTRACTS FOR E AND M. WE UNDERSTAND THAT WESTINGHOUSE AND OTHERS ALSO EXPECT TO DISCUSS THESE WITH THOMPSON NEXT WEEK. TO DECIDE WHETHER ANY SPECIAL FINANCIAL PACKAGE SHOULD BE
WE WILL NEED
PRESENTED TO THE M.T.R. AS A SINGLE ENTITY OR ALLOW EACH COMPANY INDEPENDENTLY TO OFFER THE SAME TERMS. ALTHOUGH THE FORMER WOULD BE PREFERABLE, MUCH WILL DEPEND ON THE LIKELY TIMING OF THE VARIOUS NEGOTIATIONS. ANY ADVICE YOU CAN OFFER WOULD BE HELPFUL.
}