CONFIDENTM
34/23/1
L
27
Mr Mimi
17th May, 1967.
1.
Cross Harbour Tunnel
Further to my letter 34/23/1 of 11th May, 1967 addressed to Ken Cotterill about the cross harbour tunnel,
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2. I have recently held a long talk with Michael Clinton, the Acting Financial Secretary about this project. tells me that Cowperthwaite, the substantive Financial Secretary, is at present on leave in Edinburgh but is apparently coming on occasions to the Commonwсalth Office, and might be prepared to be Hauled in to E.C.G.D. to talk about the tunnel, if you so desire. Personally, I think it would be a good thing for you to have a word with Cowperthwaite whilst he is in England, When I was talking to Ken Cotterill recently in the office, I mentioned that Carruthers of the Hong Kong Bank is also in Britain at the present time and you therefore have senior representatives of both the most presentable shareholders in Britain at the same time.
3.
Clinton told me that the Public Works Department had now completed their investigation of Costain's bid. They are apparently completely satisfied on the technical aide. They even went so far as to say privately to Clinton that Costain's design tas better than the one put up by the consulting engineers. The P.W.D. lawyers have apparently also been looking at the smallprint in the contract terms. They give it as their opinion that the contruct, as drafted at present, is as nearly water-tight as possible. However, there are one or two items which are left to the engineering contractors' discretion.
li. If all goos woll, the programme on the Government side is to put the mattor to the Legislative Council within about a month. If the Legislative Council approve the grant of the franchise to the Tunnel Co., then the company will be free to sign a contract. According to Clinton, Clague has told him that the company would be willing to sign a letter of intent, even before the Legislative Council gots through its legal business.
The Government There is one snag to be cleared in this. are not yet satisfied that Costain's bid plus the ancilliary works to be done in Hong Kong falls within their publically expressed limit of $280 million. If (including
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cont'd/ contingencies) the total/...
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