153
OVERSEAS FINANCE & PLANNING DIVISION
R Jonco Esq
སྙ་*
IIV arcasury Whitehall
LONDON SW2
163
Ext 3649
12 July 1973
HONG KONG MASS TRANSIT SYSTEM
Thank you for your letter of 10 July.
I spoke yesterday to the Managing Director of Costaing (Overseas). The reason this position has chungod is that, since they got access to the consultants studios in March this year, the assessment of the cost of the civil contracting has gone up from about $125m to £230m. About 40% of this is tunnelling end a further 20% work on coffer dams, which requires specialised manpower. They think it likely that they will need to get additional support. I told him that no had been working from the beginning on the basis of an all-British bid and they must do everything possible to achieve it. He agreca to talk to his colleagues, and see if other British contractors could be brought in, eg Taylor Woodrow, Wimpey, and Laing.
On the Anglo/French/Corman proposals, I have told CN that our special support is for the total British package only. Their role in the three country consortium would be to attract British finance by mobilicing miscellaneous equipment up to £40m. For this they could expect only the ordinary ECGD terms. ECGD have said the same.
FW Glaves-Smith
cc K Cotterill Esq ECCD
TJ Wilshire Esq ODA
AL Ryan Ecg Bank of England
A C Stuart Esq FCO
Miss Hyles DTI Mr Watson DT1
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