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DSR 11 (Revised)
DRAFT:
Mute/letter/teleletter/despatch/hőté
FROM:
Lord Privy Seal
DEPARTMENT:
TEL. NO:
SECURITY CLASSIFICATION]
TO:
Top Secret
Secret
Confidential
Restricted
The Rt Hon Leon Brittan QC MP
Chief Secretary
HM Treasury
Parliament Street
LONDON SW1
TYPE: Draft/Final 1+
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SUBJECT: METRO-CAMMELL LTD KOWLOON-CANTON RAILWAY (KCR)
1. I have seen a copy of Kenneth Baker's letter to you
of 14 August requesting agreement to the provision of
Cost Escalation Cover for the extension of Metro-Cammell's
contract to supply rolling-stock to the KCR. I strongly
support this request because there are wider issues at .
stake, not only because of the significance of the order
for Metro-Cammell's future, but for other political
and commercial reasons.
2.
The original specifications for the modernisation
of the KCR and the purchase of rolling-stock were drawn.
up by British consultants with the Metro-Cammell product
in mind. It would do our export promotion work, in
both Hong Kong and the Far East as a whole, considerable
harm if a British firm failed to negotiate in a British
Dependent Territory an extension of an order drawn up to
British specifications, and the Hong Kong Government went
to international tender. Success in the competitive
Hong Kong market is highly beneficial in promoting British
exports in the region. Conversely, failure there would hav
wider reperfussions. For example, while it is true that
economic readjustment has caused China to cut back her
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