TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 113

S 810

IMMEDIATE

CYPHER/CAT A

FM HONG KONG, 1911357

SECRET

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SECRET

TO IMMEDIATE FCO TELNO 1322 OF 19TH NOVEMBER, 1973.

FOLLOWING PERSONAL FROM GOVERNOR TO SECRETARY OF STATE FOR TRADE

AND INDUSTRY,

PA

F.C.O. TELEGRAM NUMBER 1179 MASS TRANSIT.

2

3.x

WHILE I CANNOT PRE-JUDGE EXECUTIVE COUNCIL'S DECISION, I DOUBT IF IT WOULD ADVISE THAT WE SHOULD OPEN NEGOTIATIONS WITH THE ANGLO-ITALIAN CONSORTIUM AS WELL AS THE JAPANESE, ON THE BASIS OF THE ANGLO-ITALIAN CONSORTIUM'S LETTER OF 15TH NOVEMBER, IN COMPARISON TO THE VERY SPECIFIC AND ADVANTAGEOUS OFFER MADE BY THE JAPANESE, ITS THIN TERMS WILL SHOW UP VERY BADLY INDEED.

2. THIS IS MOST DISAPPOINTING BECAUSE IN COMBINATION THE BEST POINTS OF THE ORIGINAL BRITISH AND ITALIAN BIDS SHOULD MAKE AN IMPRESSIVE WHOLE. MOREOVER THE PERSONALITIES HEADING UP THE COMPONENT PARTS, WILTSHIRE, KINDERSLEY AND PICCAGLI ARE VERY GOOD. BUT THE LETTER WE HAVE RECEIVED DOES NO JUSTICE AT ALL TO THE STRENGTH OF THE CASE FOR NEGOTIATING WITH THE ANGLO-ITALIAN CONSORTIUM. UNFORTUNATELY AT PRESENT IT IS ALL WE HAVE.

3. WE HAVE ALREADY MADE VERY CLEAR TO THE CONSORTIUM'S REPRESENTATIVE, CLAGUE, (AND I HAVE DONE THE SAME DIRECT TO THE F.3.0.) THAT WE WILL MATCH FOR THE CONSORTIUM THE FLEXIBILITY BUT WE SHOWN TO THE JAPANESE. THIS HAS NEVER BEEN AT ISSUE. MUST HAVE BY DECEMBER 2ND. SOMETHING SUFFICIENTLY SPECIFIC TO PROVIDE A BASIS FOR COMPARISON WITH THE JAPANESE. THERE IS NOTHING FOR US TO SHOW FLEXIBILITY OVER.

4.

WITHOUT THIS

I HOPE YOU APPRECIATE THAT THERE CAN BE NO FLEXIBILITY ABOUT THE CUT-OFF DATE OF DECEMBER 2ND - ON THIS OUR WORD IS PLEDGED.

BUT THERE CAN BE FLEXIBILITY ABOUT OTHER ASPECTS OF THE STEERING GROUP'S REQUIREMENTS. THE ESSENTIAL IS THAT THE OVERALL PACKAGE SHOULD BE OF COMPARABLE OR GREATER ATTRACTION THAN THE JAPANESE,

SECRVÍT

/BEARING

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