TNAG-0097-FCO40-133-Construction-of-a-Cross-Harbour-Tunnel-1968 — Page 295

CONFIDENTIAL

INWARD TELEGRAM

TO THE COMMONWEALTH OFFICE

(The Secretary of State)

FROM HONG KONG (Sir D. Trench)

Cypher

LABT

12

R.

D. 11th March, 1967

11th #1

RIF.

06.30 hrs.

NEXT

REJ,

PRIORITY

CONFIDENTIAL

No. 323

Addressed ECGD.

Repeated B.O.T.

From B.T.C. Hong Kong.

(Please pass).

EXPORTCRED No. 37. 37.

For Elliott from Hannam.

Further to my EXPORTCRED No. 36.

Tunnel.

RECEIVED IN ARCHIVES No. 631

13 MARIO

HWB 21/5

I had a hurried conversation with Clague at a party last night. He told me that three bids had been received which fell within the Colonial Government's limit of $280 million. One Japanese, one British and one German. He nodded when I mentioned Weiss Freitag.

2.

I gathered that these bids cannot as yet be compared pricewise, because Costains alone had produced the novel and excellent idea of siting the toll plaza above ground. The board and their consultants felt that this would realise such economies that they were going to ask the other two to quote for this as an alternative. He was unwilling to reply directly when I asked whether Costains too would be allowed to alter their bid in view of these post tender-opening

manoeuvres.

る。

Clague said that after the tender-opening the Japanese had offered 80% loan, but emphasised several times that if Costains produce 75% in place of their present 621% then he and the majority of the directors would see the contract is steered their way. He suggested that the British content should be raised by including in the contract the electrical sub-station equipment which Kadoorie (China Light and Power) will have to instal to serve the tunnel.

4.

I raised the matter of the joint and several guarantee. Clague said neither he nor Marden would ever agree to this. I gathered that he has got Carruthers of the Hongshai Bank to write to his London office with possible alternatives, but I inferred that these mostly amounted to appeals for concessions by you on political grounds, viz. the defence contribution and the Colony's contribution to the sterling area.

CONFIDENTIAL

/5.