TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 175

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WEEDON HAS TOLD ME THAT ACCORDING TO CODD (GEC) THE BRITISH GROUP HAVE BEEN TOLD BY WHITEHALL THAT THERE ARE TO BE

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FURTHER NEGOTIATIONS IN THE COURSE OF THE NEXT FEW DAYS,

THIS DOES NOT ACCORD TO OUR LOCAL UNDERSTANDING AND WE DO NOT KNOW WHAT THE BASIS IS. CAN YOU THROW ANY LIGHT ON IT PLEASE.

5. MEANWHILE I HAVE HEARD FROM SULKE (LOCAL REPRESENTATIVE OF ANGLO-FFRANCO-GERMANS) THAT A F G HAVE PUT IN A FIXED PRICE INCLUSIVE OF ESCALATION BUT NOT INTENDED TO COVER SUCH UNFORESEEN AS THE PRESENT ESCALATION IN WORLD PRICES DUE TO THE OIL SHORTAGE : THESE WOULD BE COVERED BY FORCE MAJEURE. SULKE UNDERSTANDS THAT A F G PROPOSALS WILL BE PUT FORWARD TO EXCO AS A COUNTER-BIT,

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COPIES OF MINUTES OF THE MEETINGS BETWEEN ANGLO-ITALI AN AND STEERING GROUP ON 1ST DECEMBER AND 3 DECEMBER FOLLOW BY BAG TO ALL RECIPIENTS OF THIS TELEGRAM,

DT: PASS COPY TO MISS LACKEY (CRE2).

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COPIES SENT TO, DTI]

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CONFIDENTIAL