substantiated reports suggest that this may be so even thorhthe Japanese have not so far withdrawn their condition of a Hong Kong Government guarantee and although their price has now gone beyond the ceiling of 5,000m Hong Kong dollars. The FCO are seeking to establish whether these rumours have substance. So far as the Hong Kong Government guarantee is concemed, HMG clearly has a vital interest in the matter. I assume that the Treasury would join with us in resisting any proposal for the Hong Kong Government to accept this condition from the Japanese.
I am copying this letter to Ken Cotterill, Mary Lackey, and Andrew Stuart.
•
FW Glaves-Smith
PS
I have just heard that the telegram to the Italians mentioned in para 3 above has not yet been sent; GEC take the view that it is not expressed in a sufficiently forthcoming manner to attract the Italians. We may have to consider talking again to the contractors.
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