TNAG-0564-FCO40-659-Construction-of-an-underground-railway-system-in-Hong-Kong-1975 — Page 150

CONFIDENTIAL

agencies, the industry needed to know where

it stood. Given the prospect of obtaining finance on favourable terms, there were

certain areas in which GEC could put forward

very competitive bids.

(iv) Lazards hoped that the meeting might clarify

the position of the UK interests concerned.

They emphasized that the UK did wish to be involved in the MTR project if at all

possible.

The DOT representative said there was no lack of interest among UK industry, either in Hong Kong generally or in the MTR project. The civil engineering industry, and to some extent the mechanical

and electrical engineering industry, had shown some reluctance to apply for prequalification, but this reflected genuine misgivings towards the procedure for tendering and the manner in which it was proposed to handle contracts. The DOT hoped some modifications might still be possible; and although they were not asking the Governor to intervene, they thought it would be helpful for him to hear the industries' views.

2. Sir Murray MacLehose could not accept GEC's inference that they had been treated unfairly in the first round of bidding. The GEC part of the consortium's bid had, in fact, been very good. He emphasized that, although he could listen to the industries' views, and would be happy to take back to Hong Kong any written memorandum submitted by the DOT, he was in no position to intervene in the system of tendering. The MTA was staffed by skilled and experienced business men, and it was advised by British consultants. He appreciated the position of the civil engineers. He was surprised,

on the other hand, at the doubts of GEC; but the GEC Chairman would have a chance to enlarge on these a few days later, when he was due to lunch with the Governor in Hong Kong. The ECGD point was a

matter for the DOT.

3. Sir Murray MacLehose added that, speaking personally, he would obviously be glad to see British participation in the project; but the MTR would be a very big undertaking by Hong

/Kong

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