TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 10

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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326 325

Mr Youde

Sir D Watson

COVERING SECRET AND PERSONAL

"My Stuart (HKIUD)

Mr

(330)

2

The Crowson Dr Goodfellow &

6/1

PA

27.1

حمد

it's abortive draft, then

PIA AEX 4/12

д

Discussed with Sir D. Natur & agreed

that it comic be better not to write at

in

the prexat jus

motive

(326)

Flags A

& B

325

MASS TRANSIT SYSTEM

4/12

1. On reflection I think there may be a case for a fairly frank

letter to the Governor now.

2. The DTI are rather wearily investigating with the consortium

whether they can improve their financial offer. But, at least at

Under-Secretary level, they are beginning to question whether they

are being forced into another RB 211 situation where the contract

is not worth the risk. If they reach this conclusion they are

likely to throw the Prime Minister's instructions that we must get

the contract, back to us for political action. The contrast between

Mr Aston's telegram and the Governor's is particularly unfortunate.

They make it look as if the Hong Kong Steering Group itself was

satisfied but that Mr Haddon-Cave and perhaps even the Governor

himself are trying one further squeeze of the UK orange.

The

Governor will not like political guidance from officials. But

I think the sort of comments we have in mind must come from us,

since they involve assessments of the reactions of the Prime Minister

and other Ministers. In the absence of the PUS these must come from

Sir D Watson. I submit a draft letter accordingly.

leaves the MOD at 10 a.m. on Wednesday and arrives in Hong Kong

The next bag

COVERING SECRET AND PERSONAL

/on Friday.

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