TNAG-0322-FCO40-358-Construction-of-underground-railway-system-in-Hong-Kong-1971 — Page 59

Agaged.

CONFIDENTIAL

Department of Trade and Industry COMMERCIAL RELATIONS AND EXPORTS

1 Victoria Street London SW1

Telex 27366

Answer Back DTIHQ London

Telegrams Advantage London SW1

J Clewley Esq

Hong Kong Department

Telephone 01-222 7877 ext

Your reference

Our reference

Date

RESED IN

REGISTRY No.51

Foreign and Commonwealth Office

London SW1

(

CRE 29671

22 July 1977

26

200002971

IKK21/2 Dear Jack, LINKK 21/2

LAST REE

NEXT

BEF

271

*138

1817

Further to our telephone conversation of 20 July, please find enclosed a copy of Rounthwaite's letter of 8 July to Frank Toms about further developments on the Hong Kong Underground front.

We are inclined to agree with Rounthwaite's view that the commissioning of the further report on the Hong Kong transport system as a whole, to be submitted in December, savours of delaying tactics. We are bubtful, however, of the mert of the suggestion that a senior member of the British consortium might visit Hong Kong around November/December with the aim of conveying the interest of UK industry in the project. Clearly, at this stage we have no guarantee that the Hong Kong Government will have reached the point at which concrete propositions could be discussed meaningfully. Mere expressions of UK interest can be interpreted as importunate are-twisting. In short, we will keep an open mind on this particular suggestion in the light of developments during the next few months. This view is endorsed by Industry with whom I have discussed the point.

I can confirm that members of the UK consortium will be having discussions with Sir Douglas Clague later this month. They are approaching these discussions with some caution. They are clearly far more interested in what share of the equity Clague might take up than in putting agency business in the way of Hutchisons. However, they recognise the advantages if Sir Douglas were to become a front man in Hong Kong.

The British consortium is well aware of the need for close contact with Freeman Fox and I can confirm that this is maintained.

We discussed Rounthwaite's request concerning recent dis cussions with Sir David Trench and Sir Murray MacLehose. I would be grateful for your comments on what we might say in reply to Rounthwaite.

чилг

Чаш

Ken

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