TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 169

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The Minister for Trade

& Consumer Affairs

REOFIVOS M REGISTRY No.

•7 NOV DIJ

HKK 21/4

DEPARTMENT of trade and INDUSTRY

The Rt Hon Sir Alec Douglas-Home

KT MP

4.

1 VICTORIA STREET

LONDON SWIH OET

TEL 01-222 7877

HKLOD for draft reply.

Secuelaing of Slate PS/Mh Röyle

Secretary of State for Foreign and D. Watson / In Youde

Commonwealth Affairs

Mont

30 October 1973

In Wilfors IFED. FRED

3/1

Celvice flam

VAJI

性

In the

HONG KONG MASS TRANSIT SYSTEM

нкто

HKIO Dep

submissive

I have been told that the Hong Kong Government have accepted as valid a bid for this contract made by the Japanese consortium. This they have done even though the Japanese have required a guarantee of repayment from the Hong Kong Government contrary to one of the essential conditions laid down by the Hong Kong Government themselves.

%%

I am sure that, at the right time, we must make the greatest possible use of this relaxation by the Hong Kong Government in favour of the Japanese, in order to reinforce the counter offer from the British or Anglo/Italian Group. But I am concerned that silence on our part now might be held to imply that a Hong Kong, Government guarantee carries no implications for TIMG. Thin, nn you know, in not the enpo. Should wo noli, therefore, firè a warming shot, making it clear that the reason is our concern with the possible reprecussions of the guarantee on HMG and not an attempt merely to exert pressure in favour of the UK bid? I hope that you will agree that a message in this sense should be sent to the Hong Kong Government.

1