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Wednesday, July 4, 1973

DECISION SOON ON CONTRACT PROCEDURES FOR MASS TRANSIT

The Mass Transit Steering Group is expected to reach a decision

within the next few weeks on whether the project should be dealt with on

a single-contract or on a multi-contract basis.

Disclosing this to the Legislative Council this afternoon, the

Financial Secretary, the Hon. C.P. Haddon-Cave, stressed that whichever

decision is taken, it remains the government's firm intention that

construction should commence on site during the first half of 1974.

To this end, he said every effort will be made to conclude the

contractual procedures, whatever they may be, by the end of this year,

"In the case of the negotiated single-contract approach, this

will require a firm decision to be made on which consortium to select,

and the issue of a Letter of Intent to that consortium signifying the

government's intention to negotiate a contract, well before the end of the year.'

The Financial Secretary described the recommendations to be

made by the group as important and difficult decisions because of the

need to safeguard Hong Kong's best interests in all respects.

The group's recommendations must have regard not only to securing

the best possible deal for the Mass Transit Railway project itself, but

also to safeguarding the government's overall fiscal and economic policies in

the future."

He said the group had held two rounds of consultations with each of

four consortia during the past four months.

IT

Their talks ...............