TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 182

SECRET

B

held with them during August/September.

This round should enable

On

a reduction in the number of consortia still in the running.

the assumption that at least 2 groups remain, competitive

negotiations will be held with them "to bring them up to scratch".

These discussions are expected to continue until July 1974. At

that stage the aim is to take the final decision on the granting

of the contract to enable a Letter of Intent to be signed (July

1974).

5.

Construction is now expected to begin in October 1974

instead of at the beginning of next year. The Governor

(Mr Aston's telegram CHRISTIAN 52) has said that the slippage in

the starting date must not affect the date of completion. This

may present difficulties for the British consortium, who regard

a starting date of early 1974 as essential if the completion date

is to be adhered to. The Japanese consider a later starting date

would still enable them to finish on time.

6.

Basically these are all matters for the British consortium.

I have discussed these developments with Mr Glaves-Smith (DTI),

who is having talks with the British consortium and will consult

ECGD and Treasury officials if this is appropriate.

3 August 1973

Cc:

Sir E Norris Sir D Watson OR

Mr Wilford OR Mr Stuart OR

SECRET

M A Goodfellow

Hong Kong & Indian Ocean Department

R.A. hum

3/8