TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 134

CONFIDENTIAL

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DRAFT TELEGRAM

CHRISTIAN

FOR ASTON FROM ROYCE (OPG)

YOU SHOULD HAVE RECEIVED IN THE WEEKEND BAG THE DRAFT

OF A LETTER FOR CLAGUE AND THE ITALIAN CONSUL-GENERAL

TO DELIVER TO THE STEERING GROUP. UNLESS YOU SEE

OBJECTION, YOU SHOULD FOLLOW UP DELIVERY OF THE LETTER

AT THE MOMENT YOU DEEM APPROPRIATE, MAKING THE FOLLOWING

POINTS:-

a.

WHILE THE UK GOVERNMENT REGRET THAT THERE IS TO BE

NO ALL BRITISH BID THEY WELCOME THE FORMATION OF THE

ANGLO-ITALIAN GROUP, WHOSE RESOURCES, EXPERIENCE AND

PARTICULAR STRENGTHS IN THE DIFFERENT FIELDS COVERED BY

THE SCHEME ARE A WARRANT OF THE GROUP'S ABILITY TO WORK

TO THE HIGHEST STANDARDS.

b. THE COMBINED GROUP HAS NOT BEEN ABLE TO QUOTE A

PRICE BECAUSE SOME OF THE INFORMATION NEEDED TO ARRIVE

AT A DEFINITIVE FIGURE IS LACKING. BUT THEY HAVE MADE A

NUMBER OF ESTIMATES AND ARE CONVINCED THAT EVEN ON

PESSIMISTIC ASSUMPTIONS OF SUCH UNCERTAINTIES AS COST

ESCALATION THEIR PRICE WILL BE KEENLY COMPETITIVE WITH

THAT OF ANY OTHER BIDDER.

C. THE STEERING COMMITTEE HAS VALIDATED THE JAPANESE

GROUP'S BID DESPITE THAT GROUP'S INSISTENCE ON HAVING

A HONG KONG GOVERNMENT GUARANTEE AND IT IS TO BE HOPED

THAT THE COMMITTEE WILL BE AS FLEXIBLE IN ASSESSING

THE ANGLO-ITALIAN GROUP'S PROPOSALS AGAINST THE

COMMITTEE'S CRITERIA.

OTHER MORE POLITICAL POINTS MAY BE MADE DIRECTLY TO THE