TNAG-0508-FCO40-573-Construction-of-underground-railway-system-in-Hong-Kong-1974 — Page 180

A

BY BAG

FM FCO

CONFIDENTIAL

RECEIVED IN

REGISTRY No. 51

18 JAN 1974

SAVING TELEGRAM

мает

8

Quler + PA

MTRS

HKK 21/2.

Also on HKK 6/598/

(HK)

EEC-GSP

CONFIDENTIAL

TO HONG KONG TELNO 2 SAVING OF 16 JANUARY 1974

CALL ON MR BLAKER BY SIR Y K KAN.

1. SIR Y K KAN CALLED ON 15 JANUARY. HE WAS RELATIVELY SUBDUED, AND WE UNDERSTAND THAT HE HAD BEEN ADVISED BY YOU TO MAKE HIS APPROACH IN

A LOW KEY.

VISAS FOR BUSINESSMEN FROM COMMUNIST COUNTRIES

18

2. HE SAID THAT HE HAD BEEN REPROACHED IN HUNGARY AND POLAND, DURING HIS RECENT VISIT, WITH THE DIFFICULTIES OF BONA FIDE BUSINESSMEN FROM

IRON CURTAIN COUNTRIES IN GETTING VISAS FOR HONG KONG. HE UNDERSTOOD

THE REASONS BUT THERE WERE UNACCEPTABLE DELAYS, WHICH HE ATTRIBUTED TO THE NEED FOR HONG KONG TO CONSULT HMG. WE MADE IT PLAIN THAT THE DECISION RESTED WITH YOU AND THAT OUR JOINT JUDGMENT WAS THAT RESTRICTIONS WERE IN HONG KONG'S OWN BEST INTEREST.

MASS TRANSIT

3. SIR Y K KAN SAID THAT HE AND HIS COLLEAGUES WERE AS DISAPPOINTED AS HMG ABOUT THE MASS TRANSIT DECISION. THE EXCO MEETING HAD BEEN UNPRECEDENTEDLY LONG, HE PERSONALLY THOUGHT IT A PITY THAT. IF THE CONTRACT WAS SO IMPORTANT TO HMG, THE PROCEDURE OF OPEN TENDER HAD BEEN ADOPTED. NO-ONE HAD EVER QUESTIONED THIS PROCEDURE UNTIL THE LAST MINUTE. HE DID NOT THINK IT LEGITIMATE FOR THE UK TO QUESTION THIS AFTER THE EVENT. FOR HONG KONG THE CEILING PRICE WAS VITAL TO ASSURE A LOW FARE STRUCTURE. THE JAPANESE BID WAS BY A CONSORTIUM OF THE BIGGEST FIRMS IN JAPAN. EXCO HAD MADE IT CLEAR THAT THEY MUST STICK TO THEIR PRICE,

LATER HE SAID THAT, ALTHOUGH THE LOWEST ANGLO-ITALIAN PRICE MIGHT BE BELOW THE HONG KONG CEILING, THEY COULD NOT WAIT FOR THIS. WHEN THE JAPANESE PUT A DEADLINE ON THEIR PRE-EMPTIVE BID, THEY MEANT WHAT THEY SAID. HE WAS SURE THAT WHEN JAPAN SPOKE OF "FORCE MAJEURE". THEY MEANT THE USUALLY ACCEPTED MEANING OF THIS PHRA07, HONG KONG WOULD INSIST ON THIS.

EEC-GSP

4. SIR Y K KAN SAID THAT DESPITE MR DAVIES'S UNDERTAKING, THE HONG KONG MERCHANTS WERE VERY DISAPPOINTED. HE HAD BEEN PRESSED TO TAKE

THIS UP IN LONDON BUT HAD SAID THAT HE SAW LITTLE POINT IN THIS. 5. MR BLAKER SAID THAT HE HAD BEEN ASSOCIATED WITH THE GSP QUESTION FROM HIS DAYS AS CHAIRMAN OF THE HONG KONG PARLIAMENTARY GROUP. MR DAVIES'S STATEMENT SHOULD BE REGARDED AS IMPORTANT. WE WERE

CONFIDENTIAL

/CONSIDERING

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