TNAG-0423-FCO40-469-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 61

Mr Wiford

Royl

n. Butter EID.

RECEIVED IN REGISTRY No. 07

20 JUL 1/3

144

مباد

138

HONG KONG MASS TRANSIT PROJECT

Flag A 1. ECGD have sent the attached letter and minute to the Treasury

about their meetings in Hong Kong at the end of June. I under-

stand from ECGD that all 4 consortia offered a price range about

50% above the original consultants' figures. The Hong Kong

negotiators were not disturbed about this and appeared to be

content with the technical presentations of all the consortium

bidders. They appear to have taken a preliminary decision in

favour of the consortium approach. The only financial points

remaining to be sorted out at this stage are those set out in

Mr Coterill's letter.

TIMING

2.

The consortia have been asked to reply on these points

before the second or third week on July, with a view to a

decision by Executive Council at the end of July, first to go

for the consortium approach, and second to reduce the field to

2 or 3 chosen consortia. Further discussions will proceed with

these chosen few during the summer with a view to a decision by

the end of September and the signing of a letter of intent by

1 October.

FROBLEMS

3. The main hitch with the UK bid of which the Hong Kong

Government is aware, is that a split has become apparent between

the civil engineering and mechanical halves of the British

/consortium.