TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 50

SECRET

cc Secretary of State for

Foreign & Commonwealth Affairs Chancellor of the Exchequer

PRIME MINISTER

se with out one!

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Si.D. Watson

HONG KONG MASS TRANSIT SYSTEM

12- Rushal /TRES,

Your minute to me M112/73.

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PS/Min TCA

PS/PUSS T PS/Secretary T Mr Denman Mr Preston Mr Edwards Miss Lackey

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317

2.5.xi.

You will have seen from my earlier minute today to the Foreign

and Commonwealth Secretary that the Anglo-Italian group, who are

now our "favourite" for the project, recognise that they must

put in commercially attractive proposals if they are to keep

in the running. The political support of the UK Government

cennot do the job for them. The Anglo-Italian Group's

Representatives, going out on Wednesday, will, therefore, be

putting in a counter bid against the Japanese in terms which

should meet the substance of what is needed according to the

guidance I have from the Governor.

From the Government side we are sustaining the Anglo-Italian

bid by extending the same favourable credit guarantees for the

British component that we had agreed upon for the all British

bid. I have also sent a message of support for the Anglo-Italian

Group directly to the Governor and have instructed the Trade

Commissioner in Hong Kong to back them up at his level. Τη

addition, Treasury and Bank of England calculate that if, as it

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