TNAG-0422-FCO40-468-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 184

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4. REPORT WILL BE LONG AND WITH MANY ANNEXES SO THAT EXCO

MEMBERS WILL NEED TO HAVE IT FOR TWO WEEKS TO STUDY BEFORE

TAKING IT IN COUNCIL. THUS EVEN IF THE DRAFT IS READY IN

TEN DAYS' TIME (PROBABLY THE BEST POSSIBLE) IT WOULD NOT BE

TAKEN UNTIL EARLY FEBRUARY.

5.

G.I.S. HAVE BEEN AUTHORISED TO GIVE THIS TIMING TO PRESS

AND IT IS CARRIED BY SOUTH CHINA MORNING POST AND STAR. OTHERS

ARE STILL CARRYING QUOTE DECISION IMMINENT UNQUOTE STORIES.

6. IT IS STILL UNLIKELY THAT REPORT WILL MAKE FINAL

RECOMMENDATION ON METHOD OR CONTRACTORS, BUT WILL LEAVE THIS

FOR FURTHER NEGOTIATION AND CONSIDERATION.

7.

MEANWHILE SPECULATION OVER THE ALLOCATION OF CONTRACTS

IS BEING USED TO ASSIST MANIPULATION OF SHARE PRICES IN THE STILL CRAZILY BOOMING STOCK MARKET. CHINESE PRESS HAVE FOR PAST FEW DAYS CARRIED REPORTS AIMED AT DEFLATING HUTCHISONS AND JARDINES AND INFLATING THE CHINESE CONSORTIUM. AT FIRST IT WAS REPORTED THAT QUOTE HUTCHISONS PROPOSAL UNQUOTE HAD

BEEN QUOTE REJECTED BY LONDON UNQUOTE, THEN THAT THEY HAD

WITHDRAWN SEMICOLON CLAGUE DEMANDED A RETRACTION OF THIS WHICH

WAS PUBLISHED. SINCE THEN THE CHINESE LINE HAS BEEN THAT

HUTCHISONS WILL GET THIRTY PERCENT, THE CHINESE TWENTY PERCENT AND THE REST SPLIT VARIOUSLY. SHARES OF MEMBERS OF

7 CHINESE CONSORTIUM HAVE IMPROVED.

9. IN FACT POSSIBILITY OF ANY MAINLAND CHINESE INVOLVEMENT

OTHER THAN NORMAL SUPPLY OF MATERIALS CAN BE DISCOUNTED.

EVIDENCE FROM OTHER SOURCES SHOWS THAT NEITHER CHINESE NOR

HONG KONG GOVERNMENTS WOULD WANT IT. JONES ALSO DISCOUNTS

LIKELIHOOD OF LOCAL CHINESE CONSORTIUM AS SUCH GETTING A

SLICE.

9.

WEEDON AND I HAVE FED FINANCIAL TIMES 4 JANUARY ARTICLE ON CONSORTIA (IN WAREHOUSING SUPPLEMENT) TO CONTACTS IN

STEERING COMMITTEE.

TPS AT 10/0947/// 0847Z AJT

VRECD AT 10/9847Z I.D.