TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 227

CONFIDENTIAL

(i)

bepul bat

(ii)

·9.

機密

XCC(73)10

charging higher fares on the travelling public so as to generate the required

revenue,

49 reducing the amount available to the

14

system to meet capital costs and

accrued interest, thereby substantially lengthening the pay-back period;

and/or

(iii) exploiting property development rights

which would otherwise accrue to public funds.

Acceptance of this proposal would also result in putting into the hands of a private company the operation of a system which would be at the core' of Government's transport policy in the 1980's, thereby making it more difficult to operate that policy. In the light of these considerations, it is considered that the proposal put forward by the International Joint Venture should not be accepted, although the element of project management contained in the proposal could be singled out for further consideration. (See also paragraph 20 below).

The remaining proposals which merit further consideration are, therefore:

(a)

(b)

Purely financial proposals put forward by:

(i) (ii)

Kleinwort, Benson Limited

Jardine Fleming and Company Limited/ Morgan and Cie International S. A. (iii) N. M. Rothschild and Sons Limited

Consortium proposals for construction, equipment and finance put forward by:

(i)

(ii)

The Japanese Consortium

The British Group

(iii) I. M. Intermetre S. p.A.

(iv) Hong Kong Metro Constructors

(c) Miscellaneous proposals (finance and project

management and/or operation) put forward by:

き

· (i) Kaiser Engineers and Constructors, Incorporated

Canadian International Project Managers

(ii)

(part of the International Joint Venture)

(iii) Hill Samuel and Company, Limited.

CONFIDENTIAL

機密