TNAG-0322-FCO40-358-Construction-of-underground-railway-system-in-Hong-Kong-1971 — Page 79

DEPARTMENT OF TRADE AND INDUSTRY

22

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Commercial Relations and Exports Department

J K Blackwell Esq CBE

7 May 1971

Senior British Trade Commissioner

British Trade Commission

2240

Hong Kong

;

长

KLF.

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HONG KONG UNDERGROUND

I think your letter of 26 April may have crossed with mine of 20th in which I was trying to bring you up to date on some of the questions you pose.

Feedon, as reported, seems to have been a bit off bean about events here; there is no question of his making the decision in Hong Kong not to submit the report on UK financial alternatives and the so called consortium is, as I have described it, merely a loose association of the interested companies. The financial report, was frankly, disappointing and said very little more than was in the Freeman Fox report. It would not have made any impression at all on the Hong Kong Government and I was relieved when Iain Ross told me in a letter the other day that they had decided not to submit it but to prepare an edited version for use as a brief in discussion with influential parties in Hong Kong.

The Steering Committee at their meeting agreed to refurbish their various commercial contacts against the time when things begin to move in the Hong Kong Government machine. There is general agreement that any movement will not now be before the change of personnel. I enclose a copy of the letter I have written to Ross, passing on your own advice about infiltrating rather than attempting a frontal attack.

As regards other contacts, Ross assures me they are in touch with the London office of Freeman Fox (your letter of 17 April refers). However, the Freeman Fox people here apparently adopt an attitude of strict impartiality and it may be difficult to get them to be as forthcoming as their chief engineer in Kowlooń seems to have been with Towlson.

I managed to keep our HMG interest on display by having a few words with Haddon Cave at a party given last week by the Hong Kong Association. I decided not to try and invite him to the office after I had heard that Michael Laird was seeing him in FCO. The latter has also taken note of the suggestion that we should try and arrange a meeting between Iain Ross and the new Governor before the latter leaves to take up his appointment.

'EUCI