TNAG-0759-FCO40-963-Manufacture-and-storage-of-explosives-in-Hong-Kong-1978 — Page 16

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CPS 180

IMMEDIATE CYPHER/CAT A

FM FCO 251700Z

CONFIDENTIAL

CONFIDENTIAL

TOP COPY

(HKK 084/)

HKK084/1

KANAV 1978

TO IMMEDIATE HONG KONG TELNO 417 OF 25 MAY

PERSONAL FOR GOVERNOR

INDEX

по

ΡΑ

Aution Tokor

If

23

See

YOUR TELNO 571 TO HONGAID: EXPLOSIVES PLANT. 1. WE ARE CONCERNED AT THIS DECISION. ICT WILL UNDOUBTEDLY REACT

SHARPLY AND WE SHALL NEED TO BRIEF MINISTERS.

2. WE HAVE SEEN EXCO MEMORANDUM XCC(78)43 FROM WHICH IT IS CLEAR

THAT ON THE TECHNICAL AND COST FACTORS THE DECISION WAS FAIRLY

EVENLY BALANCED. DECIDING FACTOR WAS THE WEIGHT TO BE GIVEN TO THE

POLITICAL AND SECURITY ASPECTS. IT WOULD HELP IN SUBMITTING TO

MINISTERS IF YOU COULD EXPLAIN THE GROUNDS ON WHICH IT WAS

CONCLUDED THAT THESE ASPECTS WERE SUFFICIENT ULTIMATELY TO SWING

THE DECISION AGAINST IC1.

3. ONCE THE DECISION IS ANNOUNCED, IF THIS IS AS GIVEN, WE KNOW THAT ICI WILL VICOUROUSLY CHALLENGE. THE CONCLUSION THAT THEIR

PRODUCTS ARE TECHNICALLY INFERIOR. IS THERE ANY POSSIBILITY THAT

THE DECISION CAN BE DELAYED WHILE ICT ARE GIVEN AN OPPORTUNITY TO

REFUTE THE CONTENTION THAT THEIR SMALL DIAMETER CARTRIDGES ARE

LESS RELIABLE AND EFFECTIVE THAN THOSE OF DUPONT?

QVEN

FILES

HKGD

MR.CORTAZZI MR.MURRAY

CONFIDENTIAL