IMMEDIATE
CYPHER CAT A
GRPS 180
FROM ROME 051445Z
CONFIDENTIAL
DESKBY 051700Z
Page
CONFIDENTIAL
6 DEC1973!
329
HKK 21/4
1335
334
བཀ ཀྭ།
TO IMMEDIATE FCO TEL NO 861 OF 5/12/73 SAVING TO MILAN.
YOUR TELNO 473.
HONG KONG MASS TRANSIT SYSTEM.
INTERMETRO KNOW NOTHING OF DEADLINE 6 DECEMBER FOR ANY CHANGE ÎN ANGLO ITALIAN PROPOSALS. THEY HANDED THEIR TENDER TO MONG KONG AUTHORITY ON 2 DECEMBER . THEIR OFFICIAL IS EXPECTED
BACK IS EXPECTED BACK IN ROME TOMORROW,
2. INTERMETRO'S PRICE IS 5876 MILLION HK DOLLARS.
THEY SAY
IT WOULD BE IMPOSSIBLE TO CHANGE THAT BY TOMORROW, THEY HAVE ASKED THE HONG KONG AUTHORITIES FOR EXTENSION OF FOUR MONTHS FOR STUDY AND RESEARCH WORK BEFORE SUBMITTING FINAL OFFER AND THEY HAVE HAD NO INDICATION THAT THIS WILL NOT BE GRANTED.
3. THE ITALIAN EXPORT CREDIT GUARANTEE AUTHORITIES ARE KEENLY INTERESTED IN THIS BUSINESS. THEY HAVE ISSUED A LETTER OF COMMITMENT COVERING THE PROJECT IN GENERAL TERMS BUT DO NOT APPEAR TO HAVE BEEN ASKED TO GUARANTEE SPECIFICALLY COST ESCALATION. THEY CANNOT THEREFORE GIVE ANY COMMITMENT IN ADVANCE. ITALIAN EXPORT CREDIT GUARANTEE LAW 131 PROVIDES FOR COVER FOR COST ESCALATION AND, IF REQUESTED FOR THIS PROJECT, IT WOULD BE GIVEN SYMPATHETIC CONSIDERATION. HOWEVER, AS MUCH OF ANY ESCALATION
ON ITALIAN COSTING WOULD UNDOUBTEDLY BE IN RESPECT OF LOCAL LABOUR, GUARANTEE MIGHT BE DIFFICULT.
HANCOCK.
FILES
HKIOD
TRED
P3/MR ROYLE
COPIES TO:
P3 TO SECRETARY OF STATE DTI MR ROYCE DTI
CONFIDENTIAL
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