TNAG-0322-FCO40-358-Construction-of-underground-railway-system-in-Hong-Kong-1971 — Page 105

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CONFIDENTIAL

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1. The attached submission and drafts, prepared by Hong Kong Department, deals in particular with the steps we might take to help British firms receive at least a reasonable share of any contracts involved in building this project.

2.

I send the papers on since Mr. Blackwell, the Senior British Trade Commissioner in Hong Kong, wrote to Mr. Royle to suggest that the British Government should instruct Hong Kong not to follow its usual practice of going to international tender but should go to Britain (see para. 12 of the submission). The D.T.I. have already told Mr. Blackwell that they do not support this approach (para. 13 of submission) and F.E.D. and H.K.D. do not accept his prognostica- tions as to the political consequences vis-à-vis China of the order going to Japan rather than Britain. I also recommend that we do not pursue the proposal put to Mr. Royle.

3. But our efforts to see that Britain gets a fair opportunity (assuming that public opinion in Hong Kong overcomes Sir John Cowperthwaite's opposition to the whole scheme) are hampered by the fact that much of our information comes from documents passed to us sub rosa and contrary to official instructions by expatriate officials in Hong Kong and I propose to write to the Governor to see what information we can obtain, of which we can make use. This will bring up to date information given to a British Trade Mission to Hong Kong last July. But I should write quickly as the Hong Kong Government may reach a decision in principle in March.

4.

Before I can do this or before we can give other Departments here our departmental views on the project, it is necessary for me to confirm that Mr. Royle agrees with the line already taken with Mr. Blackwell (see para. 2 above).

5. I am sending a copy of this to Mr. Daunt since the P.U.S. has shown a personal interest in this project.

WBL Zaman

26 January 1971

Copies to:

(L. Monson)

Mr. Daunt (with copy of submission and drafts) Mr. Turpin (with copy of submission and drafts)

CONFIDENTIAL

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