TNAG-0423-FCO40-469-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 81

IMMEDIATE

CYPHER/CAT A

GFS 200

FM HONG KONG 270923Z

CONFIDENTIAL

CONMIDENTIAL

IDENTI

Y..1

20 JUN1973

..

TOP COPY

NXX 21/4

1973

TO IMMEDIATE ECOTELNO EXCED 37 OF 27 JUNE.

DESKBY 27/1100Z

FOR FELL FROM COTTERILL.

137

PA 2

fau

Ms

on.

死

FIRST INDICATIONS BEFORE MEETING WITH STEERING COMMITTEE ARE

AS FOLLOWS.

A. STRONG EMPHASIS ON CAPITALISATION OF INTEREST, ALL THREE

COMPETITORS ARE REPORTED TO HAVE OFFERED THIS. I WILL PLAY LINE THAT WE ARE NOT WILLINGLY UNDERSOLD AND WILL MATCH SO LONG AS WE

ARE CONVINCED THAT OTHERS HAVE SO OFFERED. IF YOU COULD CONFIRM

THIS POSITION OFFICIALLY BY FRIDAYS PLENARY MEETING THIS WOULD

STRENGTHEN OUR HAND. THE POINT IS SIGNIFICANT FOR FINANCING PRE

COMPLETION EXPENDITURE.

B. STEERING GROUP MUST RECOMMEND TO GOVERNMENT BY END JULY. PROBABILITY SEEMS TO BE THAT THEY WILL SUPPORT A PACKAGE DEAL. DECISION WHICH BIDS TO DROP LIKELY TO BE DIFFICULT SEM! COLON THEY MAY COME DOWN TO TWO FOR FINAL ROUND. SECRETARY OF STATE CONTACT WOULD BE MOST USEFULLY EMPLOYED NEXT WEEK OR SO.

C. STEERING GROUP RECOGNISE POSSIBILITIES OF SEEKING TO PUT TOGETHER NEW FORMATIONS. MEANWHILE BRITISH GROUP RATHER BETTER TOGETHER THAN RECENTLY. CIVIL SIDE LOOKING FOR UP TO 30 PER CENT EEC PARTICIPATION FINANCED FROM U.K. I HAVE AGREE TO LOOK AT

THIS ALTHOUGH IT COULD AMOUNT TO POUNDS STERLING 20 MILLION. IT SEEMS UNAVOIDABLE IF WE ARE TO MAINTAIN SOMETHING LIKE AN ALL BRITISH

BID.

ASTON

EXCED DISTRIBUTION

[ADVANCED TO ECGD]

HKIOD

FRD

FED

SIR E NOERIS

MR WII PORD IK MARSHALL

CONFIDENTIAL