TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 141

SECRET

NOTES AND QUERIES ON TREASURY LETTER OF 8TH SEPTEMBER ABOUT CROSS-HARBOUR

TUNNEL GUARANTEES

1.

Para. 4 (a)

The meaning of the first part is not

clear but it seems to imply that the contract

for the approach roads should be awarded to

Costains on a negotiated basis. This would be

difficult. The approach roads on both sides

of the harbour are parts of much larger road

improvements. The total cost of these schemes

is of the order of £24. million, of which only

€750,000. is estimated to arise from the need

for tunnel approaches. This latter part could

not be done separately. I can see no objection

of the paragrape to the second party but cannot speak for other

shareholders.

2

Para. 4 (b)

It is possibly nieritalle that the Hong Kong Government meet any excess, (just as the

main Scheme has now been thrust in our laps).

It may be difficult to get legislative agreement

to a specific undertaking.

Government

In any event it is

vital that Costains and the other shareholders

know

? should know Costains | nothing of this.

An

it

assurance that Costains have no knowledge of this

now would be welcome.

I can see no difficulty in the second

part except the practical difficulty of deter-

mining when excesses have arisen. But again I

cannot speak for the shareholders.

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