TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 145

COLDENTIAL

f

C

PROSPECTS THE YER'S EXCHANGE RAPE IS LIKELY OVER THE

PERIOD OF THE CONTRACT TO RISE, DESPITE THE RECENT SLATL

DROP IN ITS VALUE. SUCH A RISE WOULD PUT UP THE

JAPANESE GROUP'S PRICE IN HONG KONG CURRENCY TERMS,

THIS RICK SEEMS RELATIVELY LOWER WITH STERLING AND THE

X

IF THE HK GOVERNMENT WERE TO GIVE A GUARANTEE OF

REPAYLENT UKG WOULD BE OBLIGED PUBLICLY TO STATE THAT

THEIR CREDIT WAS NOT THEREBY COMMITTED. REACTIONS TO

SUCH A DECLARATION IN HONG KONG ARE FOR THE HKG TO ASSESS

BUT IN THE UK THERE COULD WELL BE A HOSTILE REACTION BOTH

IN PARLIAMENT AND THE PRECS IF IT BECAME KNOWN THAT THE

MIK GOVERNMENT'S CONCESSION ON THE QUESTION OF THE

GUARAITZE HAD ENABLED THE JAPANESE TO WIN THE CONTRACT,

UKG HOPE THAT THESE POINES WILL BE GIVEN THEIR ZULL

WRIGHT WIDN THE HK GOVLNNLENT DECIDES HOW THE BIDS ARD

TO BE HANDLED.

3. IF YOU GET VIND THAQ THE STEERING COMMITTEE'S

DECISION IS LIKELY TO FAVOUR ACCEPTANCE OF TIE JAPANESE

BID PLACE REPORT URGENTLY.

4. OPG ARE CONSIDERING WHAT SHOULD BE SAID PUBLICLY

ABOUT THE COMING TOGETHER OF THE BRITISH AND ITALIAN

GROUPS AND SHALL LET YOU HAVE OUR VIEWS SHORTLY.

2