TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 181

SECRET

F

C

4.

exceed HK$ 5,000 million. Paragraph III (f) of

Annex F shows that the UK is furthest away from this

figure and the Italians nearest (UK HK$ 6489 million;

Japan HK$ 6057 million; Anglo-French-German

The

HK$ 5775 million; Italy HK$ 5082 million). The

Steering Group contends that contract prices are at

present higher than their limit of HK$ 5,000 million

to allow for contingencies as well as for unforeseen

factors largely arising as a result of the lack of

definition of underground geological conditions.

degree of uncertainty is expected to diminish

progressively as a results of the present extensive

soils investigations become available. These should

be concluded by the end of February 1974 and enable a

rather firmer price to be tendered.

(iv) Separate steps are to be taken to establish the Mass

Transit Railway Corporation.

The revised timetable (paragraph 20 of the Memorandum) has

slipped considerably from the original. The most important

points are that a letter is to go to the consortia informing each

of them of the Hong Kong authorities' requirements which it has

yet to satisfy. The British consortium's letter has been received

in London. The points raised with them are listed in paragraph

2(c) of Mr Aston's telegram number ESBOT 303. Assuming the

individual consortia wish to continue negotiations, talks will be

SECRET

/held