TNAG-0422-FCO40-468-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 89

CENFO 008/26

CONFIDENTIAL

Au Cranston

UKK2lly

CHRISTIAN TELEGRAM 43 OF 26 FEBRUARY

PRIORITY

PERSONAL FOR FELL (E.C.G.D.) ONLY.

MASS TRANSIT SCHEME

was

To see regether with

which

thur. Cofquis

bout relea

below round

Copies

37)

reply

brought

ECGD

have

FROM ASTON gave to the. Kin Cayson (EPD). the Kear (FRD)

1. SULKE (LOCAL REPRESENTATIVE OF FRANCO/GERMAN CONSORTIUM) HAS TOLD ME THAT FRANCO/GERMANS ARE NEGOTIATING WITH A BRITISH CIVIL ENGINEERING CONTRACTOR AND AN ELECTRICAL ENGINEERING GROUP (NAMES ALLEGEDLY NOT REPEAT NOT KNOWN TO HIM) TO JOIN THEM AS A BRITISH/FRANCO/GERMAN GROUP. HE SAYS THAT THIS HAS BEEN DISCUSSED WITH E.C.G.D. WHO HAVE OFFERED SAME COVER AS FOR PRESENT BRITISH CONSORTIUM PROVIDED GUARANTEE OF POUNDS STERLING TEN MILLION BRITISH EXPORT CONTENT.

2. ALSO TOLD ME THAT HERMES, COFAS AND E.C.G.D. HAVE QUOTE HAD DISCUSSIONS UNQUOTE ABOUT CREDIT TERMS BEING OFFERED AND THAT HERMES AND COTAS OFFERING HIGHER INTEREST BUT LOWER CHARGES

AND SIXTY PERCENT COVER QUOTE COMPARED WITH E.C.G.D. SEVENTY- FIVE PERCENT UNQUOTE.

3 GRATEFUL FOR CONFIRMATION OF THESE ALLEGED EXCHANGES

PARTLY TO ENABLE ME TO ASSESS HOW RELIABLE SULKE IS AS A SOURCE

OF INFORMATION. I HAVE ASSUMED THAT I WOULD BE INFORMED OF

ANY SUCH DEVELOPMENTS OR EXCHANGES EVEN IF ONLY ON A PERSONAL BASIS NOT FOR REPETITION TO CLAGUE AND WEEDON. OTHERWISE

IT IS IMPOSSIBLE TO MAKE BALANCED ASSESSMENT OF WHAT WE ARE

TOLD HERE OR EVEN TO JUDGE THE BEST QUESTIONS TO ASK AND HOW

BEST TO ASK THEM.

PENDING YOUR FURTHER GUIDANCE I HAVE NOT REPEAT NOT TOLD

WEEDON OR CLAGUE OF ALLEGED TALKS WITH E.C.G.D. ABOUT CREDIT TERMS AND ALTERNATIVE CONSORTIUM. I HAVE TOLD THEM OF PROPOSAL

TO ADD BRITISH TO FRANCO/GERMAN AND OF SULKE'S VERSION OF FRANCO/GERMAN CREDIT TERMS.

5. IF HERMES AND COFAS HAVE IN FACT NOT YET REVEALED TERMS

TO YOU THERE SEEMS TO BE CLEAR CAUSE FOR PRESSING THEM AGAIN NOW.

6.

I HAVE DELIBERATELY NOT REPEATED THIS TO OTHER DEPARTMENTS. IF YOU DECIDE TO DO SO IT WOULD BE HELPFUL TO ME TO KNOW WHO HAS IT.

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