TNAG-0508-FCO40-573-Construction-of-underground-railway-system-in-Hong-Kong-1974 — Page 163

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PP F C O

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FM HONG KONG 138652Z

CONFIDENTIAL

NO DISTRIBUTION

RECEIVED 1: REGISTRY No. 01

14FEB1974

WICH:20/2

21

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frey 13/2 Wonde

comes to

Sir D Nation

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TO PRIORITY F C O TELNO 199 OF 13TH FEBRUARY, 1974. INFO PRIORITY

HONG KONG GOVERNMENT OFFICE LONDON,

FOR STUART FROM HADDON-CAVE.

MY TELNO 198 (NOT REPEATED).

The Bitish hid besan with

is bang and endo with a

split infinitive.

13/

PRESS STATEMENT TO BE RELEASED AT 19000 HOURS THURSDAY.

TEXT AS FOLLOWS:

LAST

REF.

20

LETTER OF INTENT FOR MASS TRANSIT CONTRACT

TO BE SIGNED TOMORROW.

NEXT

KEF.

A LETTER OF INTENT TO NEGOTIATE A CONTRACT FOR THE CONSTRUCTION

AND EQUIPMENT OF THE FIRST FOUR STAGES OF THE MASS TRANSIT RAILWAY

WILL BE SIGNED BY MR HADDON-CAVE, FINANCIAL SECRETARY AND CHAIRMAN OF THE MASS TRANSIT STEERING GROUP, AND ISSUED TO THE JAPANESE

CONSORTIUM TO-MORROW MORNING.

ANNOUNCING THIS TODAY, A GOVERNMENT SPOKESMAN EXPLAINED THAT,

SINCE THE DECISION MADE BY THE GOVERNMENT ON 11TH DECEMBER 1973

TO SEEK NEGOTIATIONS WITH THE JAPANESE CONSORTIUM FOR THE CONCLUSION

OF A CONTRACT, THE MASS TRANSIT STEERING GROUP HAD HELD FIVE FORMAL MEETINGS WITH REPRESENTATIVES OF THE CONSORTIUM TO DISCUSS

MATTERS PERTAINING TO THE LETTER OF INTENT. ALTHOUGH THESE MEETINGS HAVE BEEN SPREAD OVER A PERIOD OF TWO MONTHS,'' HE SAID, ''THE DISCUSSIONS, WHICH WERE HELD IN A CORDIAL ATMOSPHERE, HAD PROCEEDED STEADILY AND IN A BUSINESSLIKE MANNER, WITH BOTH SIDES DEMONSTRATING GOOD FAITH AND AFFIRMING THEIR INTENTION TO SUCCESS-

FULLY CONCLUDE A CONTRACT''. HE ADDED THAT **THE LETTER OF INTENT, WHICH ENSHRINĖS GOVERNMENT'S STATED REQUIREMENTS AND ESTABLISHES THE TERMS WITHIN WHICH THE FORMAL CONTRACT WILL BE NEGOTIATED, IS A KEY STAGE IN PROGRESS TOWARDS THE BUILDING OF THE MASS TRANSIT RAILWAY AND MARKS THE PENULTIMATE STEP IN THE LONG SEQUENCE OF EVENTS TOWARDS SELECTING A CONTRACTOR FOR THE SCHEME AND CONCLUDING A CONTRACT.''

THE JAPANESE CONSORTIUM IS LED BY THE MITSUBISSHI CORPORATION, WITH MESSRS JARDINE, MATHESON AND COMPANY LIMITED AS THEIR LOCAL REPRESENTATIVES, MR. H. SAKAMAKI, MANAGING DIRECTOR OF MITSUBISHI CORPORATION, WILL BE COMING FROM TOKYO TO RECEIVE THE LETTER OR INTENT FROM THE FINANCIAL SECRETARY.

THE PRESS ARE INVITED TO ATTEND THE SIGNING CEREMONY WHICH WILL BE HELD TO-MORROW IN THE RECEPTION LOUNGE, 1ST FLOOR, EAST WING, COLONAIL SECRRETARIAT AT 12:30 P.M.

FCO PASS PRI

PRIORITY

TY TO HONG KONG GOVERNMENT OFFICE LONDON.

MACLEHOSE

NNNN

SENT AT 07392/13 EJH

[Copy fared to HK

Love Effice].