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21/9
CRE 29671
CONFIDENTIAL
24 September, 1970.
K.C.Price, Esq.,
Commercial Relations & xports Department,
Board of Trade,
1, Victoria Street, London, S.W.1.
Will you please refer to your letter of 9 September to Mark Goodfellow?
Tony Shephard has just returned to Hong Kong and I therefore called on him yesterday and had a long chat about the Underground scheme. I gather that he met you shortly before
he left London.
He seems to have been impressed by what he saw of the Victoria Line, although he stressed that the Hong Kong requirements would be somewhat different. He seemed rather doubtful whether the British firm would be prepared to adapt their underground trains to the Hong Kong specifications. He got the impression that they were a little bit stick-in-the-mud and might try to persuade Hong Kong to accept the London Underground system as it stands. He was also impressed by what he saw in Franch, Germany and Holland. However, he claims that provided the British firm will make the necessary adaptions, he would much prefer the order to go to Britain. I think he is sincere in this.
He foresees difficulties, however, with certain members of his Government, particularly, of course, Sir John Cowperthwaite, who is almost certain to say that the scheme is an unnecessary and very expensive luxury. If, as shephard believes, Sir John has to bow to the weight of local feeling in favour of the scheme - and apart from its obvious practical value in the chaotic traffic situation of Hong Kong it has now become a prestige symbol - he will almost certainly try to insist on the lowest tender being accepted and it is, of course, very possible, though not certain, that the Japanese will be able to beat any European offer.
The
Consultants' report has now been completed, although it
CONFIDENTIAL
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