TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 52

1

+

ORS 486. to

HMEDIATE

CYPHER CAT A

HONGKONG 240446Z

SECRET

SECRETT

M. Rover

TO IMMEDIATE F C O TELEGRAM NUMBER 1353 OF 24 NOVEMBER. 1973

i

PERSONAL FOR S. FOR S. FOR TRADE AND INDUSTRY

FROM GOVERNOR.

F C O TELEGRAM NUMBER 1206 : MASS TRANSIT.

THANK YOU FOR YOUR MESSAGE. I AM RELIEVED THAT A

COMPETENT TEAM MAY BE EXPECTED SOON. THE DATES ARE BAD BECAUSE

HADDON-CAVE WILL BE IN THE LEGISLATIVE COUNCIL CHAMBER ALL

THE AFTERNOONS OF NOVEMBER 28 AND 29, BUT THIS CANNOT BE HELPED,

AND THEY SHOULD COME AS PROPOSED,

2. TIME IS VERY SHORT:

CONSEQUENTLY IT IS VITAL THAT IN

WORKING UP THE NEW PROPOSALS THERE SHOULD BE NO MISUNDERSTANDING ABOUT HONG KONG'S POSITION. AGAINST THIS BACKGROUND, FOR SAFETY'S SAKE, COMMENT ON TWO POINTS IN YOUR TELEGRAM, 1 HOPE

UNNECESSARILY:

(A) YOUR PHRASE " FORM .....!!

TO DISCUSS PRESENTATION OF THEM IN A

IT MIGHT INDEED BE HELPFUL IF THE TEAM STARTED WITH A DISCUSSION, BUT THIS WILL BE FRUITLESS UNLESS THEY ALSO

DRAFT AND ABOVE ALL PRESENT PROPOSALS. BEFORE 2ND DECEMBER.

CAN BE NO FLEXIBILITY ABOUT THIS:

13

THERE

(B) YOUR PENULTIMATE SENTENCE. IT IS MOST IMPORTANT THERE

SHOULD BE NO MISUNDERSTANDING ABOUT THIS. THE POSITION WAS

CAREFULLY AND ACCURATELY STATED IN PARA 4 OF MYTEL NO 1322.

WOULD DE WRONG TO GIVE THE CONSORTIUM THE IMPRESSION THAT THERE

IS ROOM FOR MANIPULATING THE CASH FLOW BY, FOR INSTANCE, CHANGING

THE FARE STRUCTURE THE HONG KONG STEERING GROUP HAS POSTULATED. * BUT IT IS CONCEIVABLE THAT THE CONSORTIUM COULD FIND OTHER WAYS.

OF COMPENSATING FOR A HIGHER FIXED PRICE (BUT NOT FOR ESCALATION CLAUSES) E.G. BY MORE FAVOURABLE FINANCIAL ARRANGEMENTS.

/ 3. I

SECRET

SECRET