TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 36

HOF0018/03

00 DTI

CPS 120

CYPHER/CAT A

RICEVED IN

ISTRY No. 51 ~S OCT 1973

1X21

21/4

FM BTC HONG KONG D38785Z

CONFIDENTIAL

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1. & 17. Goodfelly

Ret

Sile

NO CISTRIBUTION

TO IMMEDIATE DTI TELNO CREDA 124 OF 3 OCTOBER.

FOR SECRETARY OF STATE FROM LORD THORNEYCROFT.

M.T&Se

DIL

RIDG

!

нклод

TRED

FRD

3.

MY READING OF MTS PROPOSITION IS QUITE PLAIN. EITHER THE BRITISH GROUP ACCEPTS PRINCIPLE OF CEILING PRICE OR IT IS OUT. OTHER CONSORTIA HAVE ALREADY DONE THIS AND BRITISH GROUP WILL SHORTLY BE TOLD THAT IT IS ELIMINATED UNLESS IT GOES INTO LINE. I APPRECIATE THE DIFFICULTY OF THIS PARTICULARLY IN THE FIELD OF CIVIL ENGINEERING BUT THESE ARE THE FACTS OF LIFE. SUGGEST YOU DISCUSS ON THIS BASIS WITH ALDINGTON/WEINSTOCK AND EXPLORE FURTHER THE FOSSIBILITY OF MATCHING BRITISH FINANCES AND ELECTRICAL ENGINEERING WHERE WE ARE FRONT RUNNERS WITH ITALIAN CIVIL ENGINEERING.

IF BRITISH GROUP REALLY CANNOT FIND A WAY TO CONFORM DO NOT RULE OUT GIVING FULL SUPPORT TO ANGLO/FRANCO/GERMAN CONSORTIUN WHICH WITH YOUR SUPPORT MIGHT SUCCEED. I RECOGNISE THAT THIS IS FAR LESS SATISFACTORY BUT BETTER THAN NOTHING. I HOPE TO DISCUSS THIS TOPIC WITH YOU 9 OCTOBER IN BIRMINGHAM. TIME IS RUNNING OUT FAST FOR THE BRITISH TO STAY IN THIS RACE.

ASTON

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SENTAT 03/6801Z RD