TNAG-0508-FCO40-573-Construction-of-underground-railway-system-in-Hong-Kong-1974 — Page 139

31

RE

RECED IN

"o. 51

12 MAR 1974

14KK 21/2

на

Dear Andrew

LAST

RE:

COLONIAL SECRETARIAT,

HONG KONG,

NEXT

5th March, 1974.

ト REC

Mass Transit Railway

One small point: I had to point out

to a couple of watchful Unofficials the other day that there was a difference between

2.

(1)

(2)

the maximum contract price (and, therefore, debt) the system could

bear, given the package of assumptions on which we built our "ideal" cash flow table; and

"I speak the limbh since I will have

Monele

The Youde

Be Good hellop

copy

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Aes

the total cost of the project (i.e contract price plus the Government's pre-contract Mass Transit Railway Corporation's own expenses amounting to another $800 million or thereabouts (and covered by the Government's equity contribution drawn from the Mass Transit Fund).

So there is no question of our moving away from that all important desideratum a ceiling price of $5,000 million.

Andrew Stuart, Esq.,

Tout

晨

sincerel

Riky

12-44

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