TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 177

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Copy to 11r. Strast 10/12/73

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TO IMMEDIATE GOVERNOR HONG KONG TELNO 1257 OF 7 DECEMBER, 1973

FOLLOWING PERSONAL FOR GOVERNOR FROM SECRETARY OF STATE.

MASS TRANSIT SYSTEM

1. I AM GRATEFUL TO YOU FOR YOUR ADVICE AND I HAVE SEEN THE RECENT EXCHANGE OF TELEGRAMS INCLUDING PETER WALKER'S MESSAGE TO YOU OF 6 DECEMBER AND YOUR REPLY.

2. 1 THINK YOU SHOULD KNOW, STRICTLY FOR YOUR OWN INFORMATION ONLY, THAT THE PRIME MINISTER MINUTED ON 26 NOVEMBER THAT IT IS ESSENTIAL THAT WE SHOULD WIN THIS CONTRACT FOR THIS COUNTRY.

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YOU CAN THUS BE ASSURED THAT THE DTI HAVE DONE EVERYTHING POSSIBLE TO PERSUADE THE ANGLO-ITALIAN CONSORTIUM TO GET THEIR BID INTO A SHAPE THAT CAN BE VALIDATED BY YOU. THEY HAVE BEEN HAMPERED DURING THIS LAST WEEK BY THE FACT THAT, AS PETER WALKER, HAS SAID, THE REMAINING PROBLEMS OF ESCALATION ARE LARGELY ON THE ITALIAN SIDE. MOREOVER, THE CONSORTIUM WERE TOLD BY HADDON-CAVE THAT THE STEERING GROUP REGARDED THEIR OFFER AS AN ACCEPTABLE COUNTERBID. THEY THEREFORE FIND IT DIFFICULT TO UNDERSTAND WHY FURTHER REFINEMENTS ARE NOW CALLED FOR.

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3. I KNOW THAT YOU FULLY UNDERSTAND THE IMPORTANCE OF THE CUTCOME ON THIS ISSUE FOR THE GENERAL RELATIONSHIP BETWEEN THE

-/UNITED

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