TNAG-0426-FCO40-472-Construction-of-an-underground-railway-system-in-Hong-Kong-1973 — Page 91

SECRET

For discussion

on 11th December 1973

XCS(73)12 Copy No.3.2

MEMORANDUM FOR EXECUTIVE COUNCIL

ARRANGEMENTS FOR THE CONSTRUCTION AND EQUIPMENT

OF THE MASS TRANSIT RAILWAY

A

Introduction

On 31st July 1973 after considering memorandum XCS(73)8 (a copy of which is at Annex A), Honourable Members advised and the Governor ordered, inter alia:

(a)

(b)

(c)

that in principle the single-contract approach (i, e. awarding the contract for construction and equipment to one consortium) be adopted for the first four stages of the Mass Transit Railway;

that further exchanges be entered into with the four consortia listed in paragraph 8 of the memorandum, with a view to bringing at least one of them up to the requirements set out at Annex F (to memorandum XCS(73)8);

that the Steering Group be authorised to select the consortia with which to enter into actual negotiations, subject to the proviso that the final selection of a particular consortium would not be made without further reference to Executive Council,

2

In accordance with the above decisions, the Mass Transit Steering Group held a further round of meetings with the four consortia in London and Tokyo. At these meetings, the Steering Group:

(a)

conveyed to the consortia the Government's decisions;

(b)

(c)

explained to them the Government requirements for a single-contract arrangement (i. e. Annex F to memorandum XCS(73)8), with particular emphasis on the ceiling price concept and the $5,000 million limit on the ceiling price;

sought from each consortium an indication as to whether they would be prepared to negotiate a contract on the basis of the Government's requirements.

In the event, all four consortia confirmed their continued interest in bidding for the contract for the project.

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