TNAG-0771-FCO40-975-Construction-of-underground-railway-system-in-Hong-Kong-1978 — Page 15

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RECEIVES. 3

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REGITRY Aston Teken

TO IMMEDIATE D O T TELNO CREDA 323 OF 30 OCTOBER 1978.

FOR TWYMAN OPG.

YOUR CREDA: METRO CAMMELL AND MASS TRANSIT RAILWAY (MTR).

I FEAR THAT NEITHER SANSOME NOR I KNOW THE EXTENT OF THE GAP

BETWEEN METCAM AND THE COMPETITION. BUT WE GUESS THAT IT IS AT

LEAST 10 PERCENT.

прым

2. THE FACT THAT WE KNOW THAT THE METCAM BID IS OUT OF LINE IS

ITSELF HIGHLY SENSITIVE AND THE MTR HAVE GIVEN STRICT INSTRUCTIONS

TO THEIR STAFF TO AVOID DISCUSSING CONTRACT DETAILS WHILE THE BIDS ARE UNDER INITIAL EXAMINATION.

3. YOU SHOULD KNOW THAT DR RIDLEY, NORMAN THOMPSON'S DEPUTY HAS

COMPLAINED TO ME ABOUT A TELEX SENT BY ECGD ON 5 OCTOBER TO OTHER

CREDIT INSURANCE ORGANISATIONS ASKING WHAT TERMS THEY ARE PREPARED TO OFFER IN RESPECT OF ITEMS SUCH AS THE CAPITALISATION OF INTEREST AND THE PERCENTAGE CHARGEABLE TO EXPORT CREDIT. THIS TELEX WAS NOT REPEAT NOT COPIED TO ME BUT IT HAS EMBARRASSED THE MTR BECAUSE IT WAS ISSUED A FEW DAYS AFTER THE E AND M BIDS WERE OPENED. CONTRACTORS FROM TWO OF THE COUNTRIES APPROACHED ARE PRIVATELY ALLEGING THAT THE MTR AND RIDLEY IN PARTICULAR ARE LEAKING INFORMATION TO THE BRITISH. I SHOULD BE

GRATEFUL FOR AN URGENT REPORT ON WHY THIS TELEX WAS SENT WITHOUT MY BEING GIVEN AN OPPORTUNITY TO COMMENT AND WHAT EXPLANATION I SHOULD GIVE TO DR RIDLEY.

4. SANSOME'S MEETING WITH THOMPSON ON SATURDAY WENT WELL. IT IS CLEAR THAT THE JAPANESE HAVE SUBMITTED AN EXCELLENT CLEAN BID

AND THAT METCAM WILL HAVE TO REMOVE THEIR QUALIFICATIONS PARTICULARLY THOSE ON FORCE MAJEURE AND TARIFF INDEMNITY. THEY MAY ALSO FIND IT NECESSARY TO OFFER THEIR BID IN HK DOLLARS IN ORDER TO RELEIVE THE MTR OF THE EXCHANGE RISK.

MARCH

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