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|香港政府 GIS 新聞處

DAILY INFORMATION BULLETIN

SUPPLEMENT

December 11, 1973

MASS TRANSIT RAILWAY SYSTEM

Government To Negotiate With Japanese Consortium

The Government announced this evening that it has decided to

enter into negotiations with the Japanese Consortium, represented locally

by Jardine, latheson and Company Limited, to see whether it is possible

to conclude a contract for the construction and equipment of the first

four stages of the Mass Transit Railway. This decision has been taken

following upon a series of discussions which have taken place between

the lass Transit Steering Group and the three consortia which had put

forward single contract proposals.

In announcing this decision a Government spokesman stressed that

the negotiations will take a number of months, but will begin immediately.

Whether or not the negotiations can be brought to a successful conclusion

will depend upon the Japanese Consortium's ability and willingness to

conform to the Government's detailed requirements for a contract.

The Government spokesman said that one of the most important

requirements laid down by the Government was that the contract price

should be limited to $5,000 million. This was because it was considered

that this was the maximum sun the railway could afford within a given

fare structure and bearing in mind the long period over which the debt

has to be repaid, resulting in a very heavy interest burden.

Consortium's proposal was the only one which was within this limitation,"

he said.

"The Japanese

Issued by Government Information Services, Beaconsfield House, Hong Kong. Tel: 5-233191

/Should

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