TNAG-0422-FCO40-468-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 119

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WE HAVE AGAIN HEARD - AS WE DID IN NOVEMBER THAT THE ITALIAN

PROPOSAL IS VERY ATTRACTIVE. BUT WE HAVE BEEN UNABLE SO FAR, TO GET ANY DETAILS OF IT. SUGGEST YOU APPROACH THEM THROUGH

BERNE UNION TO GET DETAILS OF THEIR CREDIT TERMS. FRANCO/GERMAN ARE ALSO SAID TO BE STRONG CONTENDERS. THEY APPEAR TO BE TRYING TO ENLIST SOME FURTHER PARTNERS (POSSIBLY FROM OTHER COUNTRIES) FOR THE CONSTRUCTION SIDE IN PARTICULAR BECAUSE THEY ARE ALREADY FAIRLY STRETCHED WITH CONTRACTS HERE AND FLSEWHERE. ACCORDING TO THE GERMAN CONSUL THEY HAVE NOT

YET SOUGHT CREDIT TERMS FROM HERMES. BUT WE THINK THAT THE

FRENCH MAY HAVE APPROACHED COFAS AND E.C.G.D. MIGHT LIKE TO

PRESS THEM AT LEAST AGAIN TO SEF WHAT TERMS THEY HAVE OFFERED.

WE HAVE NO FURTHER INDICATION OF JAPANESE PROPOSALS.

AT PRESENT THEREFORE IT DOES NOT LOOK LIKE IT IS ONLY A TWO

HORSE RACE ALTHOUGH F.S. MAY BE USING THE OTHER TWO AS MUCH

TO GOAD JAPANESE AND OURSELVES ROUND THE TRACK THAN AS SERIOUS

FINISHERS. HE IS CERTAINLY KEEN TO HAVE WIDEST POSSIBLE

COMPETITION AND LEAST POSSIBLE COLLUSION AT THIS STAGE. HE

IS IN A STRONG BARGAINING POSITION AND HE KNOWS IT. THE

INSERTION OF THE NEW REQUIREMENT AT (C) IN HIS LETTER IS

PERHAPS INDICATIVE OF THIS SEMICOLON IT IS THE FIRST THAT ANY

OF US HAVE HEARD OF IT.

13. NEXT STEP. I HAVE AN APPOINTMENT TO SEE HADDON-CAVE AT

4.30 PM ON MONDAY 19 FEBRUARY. I SHOULD BE GRATEFUL FOR

GUIDANCE ON WHAT I AM TO SAY TO HIM ABOUT TIMING OF TALKS IN

HONG KONG AND POINTS ON WHICH YOU WOULD REQUIRE CLARIFICATION.

I HAVE SUGGESTED A POSSIBLE LINE IN PARAGRAPH 5 ABOVE.

MEANWHILE I SUGGEST THAT ALL LIKELY TO BE CONCERNED IN THE DISCUSSION (AND THEY WILL NEED TO BE THE TOP MEN) SHOULD

CLEAR THEIR DIARIES FOR THE LAST THREE WEEKS OF MARCH.

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