XN000022-1973-08-01 — Page 3

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Wednesday, August 1, 1973

"Now that the process of negotiating a contract is about to begin,

honourable Members will appreciate that I cannot explain in detail the

reasons underlying the government's preference for the single-contract

approach, because to do so might prejudice the Steering Group's negotiating

position. But I can say that government has concluded that the single-

contract approach would be the most appropriate method of safe-guarding

Hong Kong's best interests in all respects.

"Sir, the task which is now facing the Steering Group the

task of securing the best possible single contract for the first four

stages of the Mass Transit Railway, and of assuring the financial

viability of the system is a formidable task. And as the contract is

to be awarded after a negotiation and not by normal tendering procedures,

it is also a delicate task which will have to be handled with extreme

wariness and moticulous care.

"Although the Government intends to conclude the contract

as soon as possible, it will inevitably take some time. Meanwhile,

various items of preparatory work will continue to be undertaken to

ensure that no time will be lost while the negotiation of the contract

is under way.

The Consulting Engineers will build up their organisation

further and their brief will be modified to suit the particular requirements

of the single-contract approach. Soil investigations and other engineering

research work will continue, as will arrangements for the acquisition or

clearance of land required for the purposes of constructing the Mass

Transit Railway. Planning is in hand for the establishment of a

/Mass