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Britain is obvious. Dorman Long will, I believe, be the major suppliers of the steel casing which will be used and there are large orders for ventilation plant, etc., etc., available. Additionally, shipping com- panies, almost certainly British, stand to gain considerably by way of freight.
Apart from the contract itself, out of the £4,000,000 which the sponsors put up, £750,000 gocs to our British architects and con- sultants. Moreover, Lawrence Kadoorie will have to provide a new electric sub-station which is outside the contract and will definitely use British materials paid for in cash from the U.K. Again it is estimated that the U.K. will probably get an order for 300 additional' buses once the tunnel is operating.
Confidentially, if E.C.G.D. can meet our terms which I am sure you will agree are not unreasonable, I would be prepared to cast my vote for Costains. I know how keen you are to increase UK. exports, and so am I. Therefore, I do hope that the U.K. Government will ensure that the financial terms are met.
I think you are aware that the Hong Kong Government have agreed to take up 12% of the equity and the Hong Kong & Shanghai Banking Corporation 10%.
Politically, a British success is overdue as no major construc- tion contracts have been obtained by the U.K. for long time. In all cases of international competitive tendering they have been beaten. Equally, the recent extraction of an additional defence contribution has done nothing to improve the U.K.'s image locally. Therefore, it seems to me that there are many very good reasons why all concerned should pull out all stops, and ensure that this contract is won by a British firm. I will do the necessary at this end. Could you do the needful at yours?
Perhaps you will advise me whether you think a note to the P.M. is necessary. When I saw him in early November 1965, he stressed the need to help British Exports, and I should hate the U.K. to lose this contract when we are so close to success.
“ད་ཆ་
muy
sincerely.
་་
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