TNAG-0423-FCO40-469-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 45

Rt Hon Anthony Barber TD MP Chancellor of the Exchequer Treasury Chambers LONDON SWI

The Prime Minister

Other Members of EPC

Sir Burke Trend

HONG KONG MASS TRANSIT SYSTEM

You will recall the correspondence last September about

our opening bid in the negotiations for the major contract

for the Hong Kong Underground Railway project. John Davies'

letter to you dated 25 September covered a paper by

officials describing the outstanding importance of the

project to Britain.

The negotiations on the credit terms necessary have now

reached a crucial stage.

The Hong Kong Government this

Steering Committee will xxxxix week evaluate the bids and

recommend which groups or consortia go forward to the final

round. It is touch and go whether the British group will

be selected. Our information is that at least two of our

competitors are offering terms substantially better than

those of the British group. The main differences are the

dates of repayment of principal and capitalisation of

We have promised to let the Hong Kong

interest.

Secretary of State

烈

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