TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 4

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Mr Youge

PS Mr Royle

ES

CONFIDENTIAL

Minasher

-40CTED

4001

FKK 2/4

(2x)

See subsequent ramite PIA

M. Stuart

Tels despatched

The G

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HONG KONG MASS TRANSIT SYSTEM

1.

Agreement in principle has now been reached with the

Italians for a new consortium in which GEC would take the lead

on the mechanical and electrical side while British civil

contractors would take 25% of the construction work. The DTI

consider it probable that a bid will now be submitted to Hong

Kong which will meet their conditions.

2. I think we should tell the Governor this, and at the same time dispel his fear (which is surely over-sensitive) that

Mr Royle's message to him in FCO telegram No 1025 contained

any reproach.

3. There are still substantial difficulties of timing ahead. In his telegram No 1175 the Governor says that the Anglo/Italian bid will, in all probability, have to be submitted by 18 November and proved as "valid" within the following fortnight. I have passed this timetable to the DTI whose reaction was one of disbelief that a fully valid bid for such a major contract could be prepared and submitted within a month. In the light of the Governor's very hard reaction to the suggestion of a possible need for delay, I think it would be pointless to take the question up with him again on a contingency basis.

If,

CONFIDENTIAL

/when the