NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-7406
Draft Submission.
Mr: Wilford.
Flag A,
Flag 3
Flaq c
Miss Deas.
Problem.
Hong Kong Underground Railway.
The Government of Hong Kong have commissioned
a study of mass transport in the Colony which has
resulted in a recommendation for an underground
railway system which Wasestimated to cost some
£100 million for two lines and about £250 million for
four lines.
If the proposal is accepted by the Government of llong Kong, who are now studying it, the successful tenderer for the contract will, if a British concern,
ask for E.C.G.D. cover for the value of the contract.
The Treasury view is that the period of cover of up to 20 years (5 years for construction and 15 years thereafter for completion of repayment) is out
of the question.
It is probable that the Japanese, who are
expected to be the main competitors for the contract,
would not have difficulty in obtaining cover from
their own Government.
If E.C.G.D. cover is not available, it is not
likely that the contract will be awarded to a British
contractor.
Flag A
Recommendation.
I recommend that a letter be sent to the
Treasury on the lines of the attached draft pointing
out the necessity for E.C.G.D. cover to ensure that
the contract is won by Britain.
Background.
With the increase in population in llong Kong,
the Government decided in 1965 to have a study made
of public mass transport and Freeman Fox andxRa¤£¤#xx
Wilbur Smith and Associates were commissioned to
recommend a functional plan of public transport
development for the Colony. The firm produced a
Report in 1967 recommending the construction of an
Hong Kong underground railway linking Xitaria Island with
Kowloon on the mainland with the railway branching
East and West on both sides of the harbour.
The cost of the complete project was estimated
in 1967 to be some £233 million and completion was
estimated to take fifteen years to achieve, although
No comments yet.
Private notes are available after approval.