TNAG-0509-FCO40-574-Construction-of-underground-railway-system-in-Hong-Kong-1974 — Page 35

7.

CONFIDENTIAL

Reference....

EXTRACT From The STUART's MINUTE

ON

of

22 Jo

75

Jay '74,

HKK3/548/1 (FOLIO 36) ON HIS VISIT TO AL.

Ай

Three other initiatives are also in the balance. The Hass Transit negotiations with the Japanese are proceeding on the basis of the letter of intent, for a fixed price contract of. HK$5,000 million. The Governor does not yet know whether the Japanese will keep to this. There has been no official sign that they will not. He believes that considerations of prestige will keep them to it, even if it means a subsidy from the Japanese Government. If they do abide by their offer, it would represent such a bargain for Hong Kong at present day prices, that he believes the project must go ahead, despite the financial straing. But if the Japanese demand more money or lower specifications, his present view is that Hong Kong should drop the whole project and think again. He knows (from Lord Aldington) of the proposals for British participation and reads nothing into them.

thu. Strank has asked

in addition to the points

above extract

Me

to bound thir

Lovened

in the

he abso discussed

discussed the

extract he abs

question

of the United Kingdom disclaimer (Mr. Goodfellow's minate of 5 June, 1974, Folio 65 on peut I of this file refers)

pant with

the Governor. Sin M. Machchose took the

that the appropnicki time for HMW

wim

to

арри

disclaim financial liability would be

when the Hong Kong Goommment providual

when the

guarantee, i.c., when

沾

contract itself

wi

CONFIDENTIAL

in dock

the finch

тери

2