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modernisation plans, it is expected that the Chinese will eventually equire new rolling-stock for their own
railways, particularly their part of the Kowloon to Canton line. If the whole KCR order is secured, Metro-Cammell
would then be well placed for such orders.
3. It is also worth bearing in mind that a Transport
Conference is being planned to be held in Hong Kong in
February 1982. The aim is to promote the work of British
consultants and exporters, using Hong Kong, which has
bough much from our transport industry, as a showpiece.
It could be serious if the KCR had, just prior to the
conference, turned to our foreign competitors for the
I therefore hope you remaining rolling-stock.it requires.
will agree to the provision of Cost Escalation Cover.
4. I am copying this letter to members of EX Committee,
to Norman Fowler and to Sir Robert Armstrong.
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