TNAG-0335-FCO40-371-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 36

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which some 160 British firms were represented, from 23 31 October.

On 21 October HRH Princess Alexandra officially opened the Cross Harbour Tunnel, a major British achievement which was

financed by a £14 million loan backed by ECGD.

15. The UK has a Trade Commission in Hong Kong whose principal function is to assist British exporters. If the opportunity occurs the Secretary of State may like to emphasise how important it is for the Hong Kong Government and the British Trade Commission

to keep in touch on trade matters.

MASS TRANSIT SCHEME

16. Hong Kong has taken the decision in principle to build an underground railway at a probable total cost of £500 million at mid- 1972 prices. Opening financial, constructing and operating

proposals had to be submitted by mid October.

Construction should

start in 1974. Ministers have agreed the extent of the initial financial support which HMG can provide for the British Consortium (led by GEC on equipment, Costains on construction and Lazards on finance). Mr Royle talked with the Hong Kong Financial Secretary about the project in September. The UK bid should be competitive

but we expect to have to improve our financial terms later.

The Japanese will be our main competitors.

AID

17. We have been giving very little aid to Hong Kong because of her relative affluence. The ODA have however already agreed in principle to the grant of £400,000 towards the Hong Kong technical

institutes.

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