TNAG-0322-FCO40-358-Construction-of-underground-railway-system-in-Hong-Kong-1971 — Page 28

Mr Laird

Thanks

257

Reference.......

MASS TRANSIT SCHEME (UNDERGROUND RAILWAY)

1.

(311)

The background to the two telegrams attached is that as a result of a prearranged official inspection of the Tokyo Underground in 1970 by Tony Shephard, Hong Kong Commissioner fro Transport, the Japanese formed a consortium in the hope of being given the contract to construct the Hong Kong Underground system. Periodically the Japanese propaganda machine reminds the world of the consortium's existence and its ability to construct underground railways.

2.

Sir John Clague (Unofficial Member of Executive Council and influential industrialist) has recently visited Britain with a view to promoting British interest in the project and to the formation of a British consortium. He has been successful and a consortium has been formed in conjunction with the EGCI (Export Group of Construction Industries) and the RIA (Railway Industries Association). These organisations and the DTI wish to issue a press release which in effect will simply be an announcement that a British consortium has been formed.

3. I questioned Ken Price (DTI) and David Smith, his assistant, as to whether the Hong Kong Government were fully informed and in agreement with these plans and was assured that they were. Nevertheless, I pointed out the political implications and obtained an agreement that the EGCI/RIA/DTI press release would be cleared with this Department before being issued. I understand it is not likely to be ready for about 2 or 3 weeks.

4. A side issue raised by Price is the replacement as Commissioner for Transport of Tony Shephard by Brian Wilson, at present Deputy Defence Secretary. There is speculation in DTI that as Shephard was the underground railway's main advocate, his removal at the age of 41 suggests a falling-off of Government interest in the project. As you will see in the attached cutting from the South China Sunday Post Herald (which I have copied to Price) the Hong Kong Government are not offering any explanation but, as Shephard was always particularly outspoken, he may have been removed for this reason alone.

22 September 1971

The

J A Clewley

DD 737719 557664 500M 2/71 GM 3643/2