TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 5

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when the deadline arrives, it has been shown to be physically

impossible for the consortium to get their bid in in time, we

can take the matter up again on the basis that it is wrong

that we should be eliminated on these grounds alone. Meanwhile

the consortium had better get on with it as quickly as they can.

I have asked the DTI to make it plain to them that they cannot

rely on our supposed power to lean on Hong Kong to excuse any

avoidable delay.

4. Another snag is that Mr Aston has reported (Christian

telegram No 53) that the two points which the Governor suggested

in his telegram would be disposed of early next week, may be a

demand for a guarantee from the Hong Kong Government and for an

increase in the ceiling price. The DTI, who have received

Mr Aston's telegram, take the view that either of these would

be a breach of faith. Hong Kong have always refused guarantee.

In any case, since they are not a sovereign power, a government-

to-government agreement of this kind would need to have our

blessing, which we would be unlikely to give for an all-Japanese

contract. As for the ceiling of HK$5,000 million, Hong Kong

have insisted that this was immutable, and it was at least

partly this insistence that led to the break-up of the British

consortium.

are

5. It is difficult to square Mr Aston's story with the Governor's

with the Japanes! implication that the points which are still outstanding a

relatively minor. The DTI have asked if we will check. But

/we are

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