TNAG-0425-FCO40-471-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 73

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WEDIATE

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FM HONGKONG 240440Z

SECRET

SECRET

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303

(309)

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

me

bucking him informed dixit?

2-л. Ст

? 6/μ

PERSONAL FOR S. FOR S. FOR TRADE AND INDUSTRY

与

3009

17, Goodfellow then P/A

26x1

FROM GOVERNOR.

F C O TELEGRAM NUMBER 1206 : MASS TRANSIT.

HKK 21/4

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, I COMMENT ON TWO POINTS IN YOUR TELEGRAM, I 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:

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. IT

WOULD BE 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.

SECRET

/ 3. I

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