TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 70

357

(3+6

CONFIDENTIAL

SECRETARY OF STATE FOR FOREIGN

AND COMMONWEALTH AFFAIRS

HONG KONG MASS TRANSIT SYSTEM

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SuD. Watson

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You are quite right to think that the British element in the

Anglo-Italian consortium have, until the latest exchanges

with the Governor, preferred to state a belief that political

arguments would sway the contract their way even if they had

made less effort than your and my advisers thought necessary

to put in a valid counter to the Japanese pre-emptive bid.

Fortunately the reality now seems clear to them. They are

meeting with the Italians in London today and expect to send

a team to Hong Kong on Wednesday next armed with, I hope and

trust, sufficient authority to put in a counter proposal to the

Japanese which will justify the Executive Council keeping

the competition open. I have informed the Governor.

things stand I think there is no need for you or I to talk to

Sir Arnold Weinstock.

As

I am copying this minute to the Prime Minister and to the

Chancellor of the Exchequer.

DEPARTMENT OF TRADE AND INDUSTRY

1 VICTORIA STREET

LONDON SW1H OET

бобо

PETER WALKER

26 November, 1973

CONFIDENTIAL