TNAG-0423-FCO40-469-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 102

CODE 19 77

PUSS(T) OM No.578.

Mr Fell

Reference

129

cc Mr Denman

Mr Cotterill Mr Glaves-Smith Mr Stuart,

FCO

HONG KONG MASS TRANSIT SCHEME

You came to a short meeting with Lord Limerick on June 1 at which Mr Denman, Mr Cotterill, Mr Glaves-Smith and Mr Stuart, FCO, were also present.

The meeting discussed what HMG's attitude should be to the call made by Mr Ozu on our Embassy in Tokyo suggesting again a joint Anglo/Japanese consortium to undertake the long Kong Mass Transit Scheme. It endorsed the conclusion set out in your minute of 31 May that there should be no change in our position of solid support for the GEC led consortium while keeping Mr Czu in play at arms length for the time being. We should re-assess the situation after the June round of talks.

You confirmed that GEC genuinely wanted the whole contract. Though the Japanese might have a technological lead in some areas GEC probably would in others. You felt that the Japanese suggestion for a joint consortium reflected their basic lack of interest in an all Japanese bid, stemming from their reluctance to have so much money in one place and their awareness of the political difficulties in the way of their being awarded the whole contract. You did not feel that backing GEC solely involved an undue risk of the Hong Kong Government, faced with bids from the two consortia, choosing the most attractive parts from each.

It remained to put the Embassy in Tokyo in the picture as to the line to take with Mr Czu (done in your letter of June 2) and to confirm to HKG GEC's continuing interest in the whole contract Hr Stuart would have a convenient opportunity to do this in a courtesy letter he owed the Governor...

Ksn Tait

Miss K 1 Tait PS/PUSS(T)

V/S 820A Extn 2626 6 June 1973

Mr Corfellays

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