TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 37

COVERING SECRET

(320 (311)

319)(318

Minyster

Ma thighet (HR*IOD.).

321

DEC1773

HKK 21/4

PA

320 Flag A

Flag

Flag

Mr Youdé

必

PS to Fr Royle

HONG KONG MASS TRANSIT SYSTEM

1.

瓜

п

Googhellow

4

The Anglo-Italian

Action has been proceeding in two channels.

Group have reorganised their bid and left for Hong Kong yesterday.

They took with them a new document which they will discuss with the

Hong Kong Steering Group with the intention of agreeing and submitting

it before the deadline of 2 December. The wording of this document

is still somewhat tortuous. It is a further attempt to reconcile

the consortium's hesitations about bidding a fixed price before all

the information is in,with the Hong Kong Government's demands for a

fixed price before 2 December. Much will depend on whether the

notional prices to be quoted under the various options in the

proposal will be low enough to attract the Hong Kong Government.

Mr Kindersley of Lazards who will be leading the team believes that

they will. We can only hope he is right.

2.

Meanwhile the Secretary of State for Trade and Industry

(311) replied on 26 November to our Secretary of State's earlier minute

(319)

suggesting that he should call in Sir Arnold Weinstock. Private

Office have already written to the DTI to say that the Secretary of

State agrees with Mr Walker.

COVERING SECRET

13.