TNAG-0423-FCO40-469-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 79

Reference

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HONG KONG MASS TRANSIT FROJECT

Note on meetings held in Hong Kong 28-29 June

1.

Mr Coggins and I took part June 28-29 in the presentation in Hong Kong by the British Group of their proposals for the construction of the first four stages of the Hass Transit Froject. They had been preceded by the Italian, Japanese and German-French- British groups.

2. The Hong Kong Steering Committee will now evaluate the four indicative bids and will make recommendations to the Executive Committee of the Hong Kong Government for their consideration at the end of July. The Steering Committee report will be prepared over the next fortnight to give the Executive Committee time to consider it.

3. The report will contain recommendations on two questions:-

whether a fragmented or consortium approach should be accepted;

4.

a.

b.

subject to the conclusion on a., which groups or consortia should go forward to the final round.

On a. the Steering Committee said that they had virtually decided to recommend a consortium a proach. Un b. the probability is that two groups will be selected for the final intensive stage of negotiation. They will be notified early in August and rapid progress is then expected, with the issue of a Letter of Intent to the successful group by 1 October.

5. It is touch and go whether the British Group will be selected for the final round. There is a point of view that they may be let in for "political reasons". Even if this were so - and it may be doubted they could not rely on it to get then through the final round.) The three competing groups have put in indications as complete consortia. Each apparently operates through a single company and they have given the Steering Committee the impression that each consortium can look after any internal problems without concerning the Hong Kong Government. Some of the consortia also envisage that they would take responsibility for designing the system.

6. By contrast the British Group is made up of two separate elements: GEC would do all the electrical and mechanical engineerin and the civil works consortium of five contracting companies would do the civil work. There would be two contracts. This approach disconcerted the Steering Committee and last minute efforts were made to paper over this dual approach. Discussions will take place this week between Lazards, GEC and the civil works people in an attempt more closely to provide what the Hong Kong Government is after.

7. On the other hand the British Group's presentation was probably more detailed and the questions that arose in discussion made it clear that some of the competing consortia had not clarified the extent of their joint and several responsibility. The Steering Committee seem to have accepted at face value the apparently unified approach of these consortia.

CODE 18-77

18.