TNAG-0422-FCO40-468-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 58

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2.

4.

b.

C.

Japanese Ministers were at present so touchy about

Hong Kong's general attitude on trading questions

that he had to choose carefully his time to put

proposals to them. This meant that the Japanese

consortium in March would not have a final nego-

tiating position.

The Japanese wished to "internationalise" the

project even if they were in a position to take

the full order.

In their view the effective competition was between

Japan and the UK.

On

Mr Ozu therefore suggested that there should be a joint

approach. Each side should agree to take 2 of the first 4

stages of the project. The demarcation line could be agreed

between them. He stressed the delicacy of the proposal.

their side only MITI and the leading industrialist concerned

were aware of the proposal. But he was certain that MITI

could, in his words, "deliver", ie that the Japanese industry

would go along with the proposal. Mr Fell took note of this

without commitment. He has, however, since mentioned the idea

in strict confidence to Sir Arnold Weinstock of GEC, one of

the leaders of the consortium, who has expressed interest.

5. I have discussed the present situation with Mr Fell and

with Mr Glaves-Smith of the DTI. We agreed that the latest

information from Hong Kong showed that, in the discussions

there on 19 March, we should aim to establish the consortium

/approach

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