CONFIDENTIAL
220
19 September 1973
May Ref: 2F(E) 17/68/01
K Cotterill Esq
Export Credits Guarantee Department
Aldermanbury House
Aldermanbury
London EC2P 2EL
215
288
HONG KONG MASS TRANSIT SYSTEM
Mark Goodfellow of the FCO recently sent Hester Boothroyd
a copy of a letter dated 30 August from Haddon-Cave commenting on the UK bid. I have also seen the note of an informal discussion which Michael Wilford of the FCO had with Haddon-Cave on 3 September.
2.
I was interested to see Haddon-Cave's comment about the kind of fares structure which might be introduced, which appears to involve a change in fares policy and also his comment that the Hong Kong Government might allow the Corporation to be wound up.
These comments raised in my mind the question of the viability of the project, satisfactory evidence of which is a condition of Treasury Ministers' approval for ECGD support. This is recognised in paragraph 10 of the paper which was put to Ministers last year. We also discussed this matter among others at my meeting on 8 September 1972; at that time no detailed information was available, and ECGD suggested that it might be necessary to seek advice from transport economists.
3. I should be grateful if you would let me know how matters have progressed since then, and in particular what is the assessment of ECGD and other Departments of the project's viability, in the light of the information in these latest exchanges.
(R JONES)
ос
FW Glaves-Smith Coq
Department of Tr.de & Industry
VA Goodfellow Esq
Foreign and Commonwealth Office
AL Ryan 89 Bank of England
CONFIDENTIAL
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