TNAG-0424-FCO40-470-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 6

CONFIDENTIAL

are inhibited from doing so directly by Mr Aston's request

that we protect his source. We have mentioned signals from

the Japanese in previous telegrams. We can perhaps conceal

the origin of our question without falsehood by referring to

signals once again.

6.

7.

I submit a draft telegram accordingly.

I also understand from the DTI that Mr Walker is increasingly

concerned about the Hong Kong Government's handling of the whole

question. He apparently takes the view that we will shortly have

to tell Hong Kong that they must not give the whole business to

the Japanese, no matter what the deficiencies of the British bid.

I think we need to put the record straight now before there are

further misunderstandings. The important thing for the DTI is

to put together a British bid. Once this is in and has been

accepted as valid all things will be possible.

8.

for

But if we try to insist on Hong Kong accepting a partial

or total British bid which is not "valid" in their terms

example which does not accept the concept of a ceiling price

and rejecting a Japanese package which has been made to meet

their requirements in all respects, then we shall be in for

substantial constitutional trouble in Hong Kong; and also

internationally, with Japan and the other consortia, with

charges of unfair competition. There is a tendency both in the

DTI and in GEC to believe that in the last resort we can rescue

their bid for them. Both to avoid misunderstanding and to

3.

CONFIDENTIAL

/ensure