IMMEDIATE
CYPHER/CAT A
GPS 320
CONFIDENTIAL
283
FM HONG KONG 161025Z
285)(286) 28
PA
CONFIDENTIAL
TO IMMEDIATE FCO TELNO 1315 OF 16 NOVEMBER.
1973
RECEIVED IN
FULDTRY No. 52
3.X11
PERSONAL FOR SIR DUNCAN WATSON FROM MACLEHOSE.
MASS TRANSIT RAILWAY.
19 NOV 1973
1HKK 21/4
WE HAVE JUST RECEIVED A LETTER FROM SIR DOUGLAS CLAGUE WRITING ON BEHALF OF THE NEWLY FORMED ANGLO-ITALIAN CONSORTIUM. TEXT IN M.I.F.T.
2. WHILE WE ARE GLAD TO KNOW THAT THE BRITISH GROUP AND INTERMETRO HAVE AT LAST COME TOGETHER ON AN AGREED BASIS, WE ARE DISMAYED BY THE TOTAL INADEQUACY OF THEIR COUNTER BID. IT IS IN NO WAY COMPARABLE WITH THE JAPANESE PRE-EMPTIVE BID AND IT WOULD BE QUITE IMPOSSIBLE FOR US TO SUGGEST TO EXECUTIVE COUNCIL THAT THE ACCEPTANCE OF THE JAPANESE BID SHOULD BE DELAYED UNTIL NEXT APRIL ON THE BASIS OF SUCH A THIN LETTER. INDEED, TO DO SO WOULD MEAN THAT THE JAPANESE WOULD WITHDRAW THEIR BID BECAUSE THEY HAVE MADE IT QUITE CLEAR THAT IT WILL BECOME TIME EXPIRED IN MID-DECEMBER. IN ANY CASE, IT IS DOUBTFUL WHETHER THE ANGLO-ITALIAN CONSORTIUM'S COUNTER BID IS EVEN ELIGIBLE FOR CONSIDERATION, IN AS MUCH AS IT DOES NOT CONFORM WITH THE TIME SCALE LAID DOWN IN THE LETTER HADDON-CAVE ADDRESSED TO THE OTHER THREE CONSORTIA AFTER THE VALIDATION OF THE JAPANESE PRE-EMPTIVE BID. (SEE PARAGRAPH 2 OF MY TELEGRAM 1200).
3. THE STEERING GROUP WILL BE CONSIDERING THE POSITION AT A MEETING ON 19 NOVEMBER AND WILL PROBABLY SEND THE NEW CONSORTIUM A LETTER EXPLAING THAT WHAT IS REQUIRED IS A DEFINITIVE PROPOSITION BEFORE 2 DECEMBER (AND PRIVATELY BOTH HADDON-CAVE AND I WILL EXPLAIN TO CLAGUE THAT A COUNTER BID WHICH IS UNABLE TO STATE A DEFINITE PRICE MUST, AT LEAST, BE PARTICULARLY ATTRACTIVE IN SOME OTHER RESPECTS TO HAVE ANY CHANCE WHATEVER OF BEING TAKEN SERIOUSLY).
CONFIDENTIAL
/ 4. IN ADVANCE
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