STATE
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DEPARTMENT
OF
TRANSPORT
2 MARSHAM STREET LONDON SWIP 3EB
The Rt Hon Leon Brittan QC, MP Chief Secretary to the Treasury Treasury
Parliament Street
LONDON SW1
Bute
AKV
HKG D
28 August 1981 173/2
OFFICER
1981
EXPS
Treel
FA Actor Ten
16
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No
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Pas 81
I have seen Kenneth Baker's letter to you of 14 August
about an extension of Cost Escalation Cover for Metro Cammell's
contract to supply rolling stock for the Kowloon-Canton Railway.
I am writing to support Kenneth's view of the serious situation which would arise for Metro Cammell if they cannot secure extension of the cover. As he says, after 1983 there is a 6 year
gap before London Transport are likely to be able to place rolling stock orders with Metro Cammell again. It would be extremely unfortunate if, because cover is not extended, Metro Cammell went out of business and London Transport and any other UK purchasers had to turn to overseas suppliers.
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So this contract could be crucial and I join with Kenneth in urging you to agree to Metro Cammell's request.
NORMAN FOWLER
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