TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 148

31 13

n

Youde I crowsert

c.c. Chancellor of the

Exchequer

Mr Royle FCO

Or Godfellys

T

PA

Habar

CUPPY NO

N=15

2 13-X asys.

PS/R-Royle F M'wilford

pl 1

SECRET

Aas

12/12

Mr Denman

PS/Minister TCA PS/PUSS PS/Sec. T

PRIME MINISTER

Dep.Sec. Mr Hochfelder OFP

Mr Preston Dep.Sec.

Mr Edwards. Miss Lackey

3:

CRE2 CRE |

Mr Farry

Mr Cotterill ECGD

357)

OFP

Miss Kelley

Treasury

FCO

311

(3-6

Mr Stuart

311,

w/357

w/359

HONG KONG MASS TRANSIT SYSTEM

14 L

14KK 2014

You will have seen the developments over this since I

minuted you on 26 November and, in particular, the Governor's telegram No 1417. Officials in the Treasury, FCO and my

Department have looked at the Governor's proposal for a

guarantee from HMG in the UK that would enable the Anglo-

Italian Consortium to bid a fixed price of Hong Kong

$5,000 million. Their conclusions are set out in the

minute to me of which I attach a copy.

these conclusions.

I agree with

I am sure the Chancellor of the

Exchequer will do so too. Mr Royle, in Sir Alec Douglas-Home's

absence has said that the FCO will abide by Treasury and

DTI's advice on this. This means that we do not offer a

· guarantee as suggested by the Governor. I have, however, in the message of which a copy is also attached, asked him

to do the best he can with the material he has. If he

cannot hold the position I would then suggest we try to

get some business for UK firms out of any Japanese contract.

CC

DEPARTMENT OF TRADE AND INDUSTRY

1 VICTORIA STREET

LONDON SW1H OET

11 DECEMBER 1973

SECRET

P.W.