TNAG-0509-FCO40-574-Construction-of-underground-railway-system-in-Hong-Kong-1974 — Page 4

CONFIDENTIAL

PS 120

CYPHER CAT/A

FM BTC HONG KONG 181000Z

CONFIDENTIAL

RECEIVED IN

REGI 2 o. 51

20 DEC 1974

HKK 21/2

174

TO ROUTINE F C O TELEGRAM NUMBER BTC 143 OF 18 DECEMBER' INFO DOT (FOR FARRY OFPD).

LASI

REF.

FOR STUART HKIOD: MASS TRANSIT.

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HONG KONG STANDARD CARRIES A STORY TODAY THAT THE MASS TRANSIT NEGOTIATIONS HAVE HIT A SNAG AND STATES THAT GOVERNMENT OFFICIALS WILL NOT MEET WITH THE JAPANESE CONSORTIUM AGAIN UNTIL MID-JANUARY. THE PAPER STATES THAT IT BELIEVES THAT ONE OF THE CAUSES IS COUNTER PROPOSALS BY THE JAPANESE FOR SUBSTANTIAL MODIFICATIONS TO THE TUBE TO KEEP COSTS DOWN TO THE DOLLARS HONG KONG 5,000 MILLION CEILING,

I TAKE IT THAT THERE WILL BE NO QUESTION OF THE HONG KONG GOVERNMENT AGREEING TO MAJOR MODIFICATIONS WITHOUT GIVING THE

OTHER CONSORTIA AN OPPORTUNITY TO LOOK AT THIS ONE AGAIN.

IF THE MATTER IS DISCUSSED WITH THE GOVERNOR IN LONDON, I WOULD BE GRATEFUL IF YOU COULD LET ME KNOW FOR MY OWN

INFORMATION, WHAT HE HAS TO SAY.

KINNEAR

FILES

HKTOD

TRED

CONFIDENTIAL

COPIES TO

MR FARRY OFPD DOT MR ROYCE OPG DOT

ECGD

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