TNAG-0422-FCO40-468-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 104

CONFIDENTIAL

This

British consortium to quote a firm price. We shall be able

to check these suppositions when the ExCo paper arrives.

has been promised by the Governor, but is still on its way.

4. I have spoken to Mr Fell of ECGD. He is reasonably

satisfied with the present position and thinks that the British

consortium will be able to meet Mr Haddon-Cave's procedural

requirements. He does not think that any intervention by the

FCO is necessary at present, either in London or Hong Kong.

5. He has explained the reference to a telephone call in the

first paragraph of Mr Aston's telegram, by saying that he has

asked Mr Aston to warn Mr Haddon-Cave that international credit

is tighter than it was when the Hong Kong team came to London,

and that he should not be too carried away by the offers then

made by merchant bankers not involved in the consortium, into

thinking that finance for separate contracts would be easy.

6. Mr Fell agreed that the revaluation of the Yen not only

means that the Japanese price will have risen by comparison

with ours, but also that further escalation in Japanese prices

is likely over the period of the whole contract, since it is

likely that the Yen has not yet reached its ceiling. ECGD

will make appropriate but discreet use of this point at the

right time.

Copy to:

I read this

meaning

Har the

Aest

A C Stuart

consortium approach is not very likely Hong Kong & Indian

to succeed. If the contrad mattor is

give every dog

21 February 1973 favoured tag will be able to

a bone of sorts. Mr Finlayson like the area of sending second rater to it for lacks.

Mr Keeble

CONFIDENTIAL

Ocean Department

KunuWilla ?!!

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