TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 24

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CONFIDENTIAL

TO IMMEDIATE TOKYO TELNO CREDA 555 OF 4 DECEMBER.

FOR BURGES WATSON FROM HARRIS.

YOU WILL BE AWARE THAT MAJOR DECISIONS ON THE BIDS FOR THE HONG

KONG MASS TRANSIT SCHEME ARE EXPECTED SHORTLY. IT WOULD BE HELPFUL

TO THOSE DEALING WITH THE PROJECT HERE IF WE COULD BRIEF THEM ON

RECENT JAPANESE EXPERIENCE OF PRICE INFLATION. WE WOULD BE GRATEFUL

FOR ANY INFORMATION YOU COULD SEND US URGENTLY ON THE FOLLOWING

POINTS:

A. THE LATEST WHOLESALE PRICE INDEX FIGURES, HOW THEY COMPARE WITH A YEAR AGO AND THE PRESENT RATE OF ANNUAL INCREASE.

D. ANY AVAILABLE MATERIAL ON INCREASES IN PRICES OF MANUFACTURED

GOODS AND/OR EXPORT PRICES THIS YEAR.

C. MOVEMENT OF INTEREST RATES AND WAGES OVER THE LAST YEAR.

D. ANY INDICES FOR PARTICULAR SECTORS SUCH AS STEEL AND

CONSTRUCTION COSTS WHICH WOULD BE RELEVANT TO AMAJOR CAPITAL PROJECT.

THE TIMES ON 30 NOVEMBER FOR EXAMPLE SAID THAT A COMPARISON OF REAL

AND NOMINAL GROWTH RATES SHOWED THAT PRICE INCREASES IN THE

CONSTRUCTION SECTOR WERE PARTICULARLY SEVERE DURING THE THIRD

QUARTER.

E. ANY OTHER INFORMATION YOU FEEL MIGHT BE RELEVANT TO A

CONSIDERATION OF RECENT AND FUTURE EXPORT COMPETITIVENESS ON A

PROJECT OF THIS KIND.

FOR THE PURPOSES FOR WHICH HTHIS MATERIAL IS REQUIRED ONLY

PUBLISHED INFORMATION CAN BE USED. WOULD BE GRATEFUL IF THISCOULD

BE SENT BY NOON 6 DECEMBER OUR TIME.

DTI

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