TNAG-0772-FCO40-976-Modernisation-and-electrification-of-the-Kowloon-Canton-Rail-1978 — Page 34

HKK 173/2.

RECEIVED RESTY NO. 51

NOW 1978

DEX OFFICER

RE!

INDER

PA

Action Twen

No

Seat

129

HKG D

37

00 BTC HONG KONG DESKBY 180100Z

GRS 260

CONFIDENTIAL

DESKBY 180100Z

FM DTI 171941Z NOV 78

See (40)

PA

TO IMMEDIATE BTC HONG KONG

TELEGRAM NUMBER CREDA 191 OF 17 NOVEMBER

FOR MARCH FROM TWYMAN O P G

YOUR CREDA 344: KOWLOON CANTON RAILWAY

TRED. (2)

PUSD (2)

WE HAVE RAPIDLY CONSIDERED YOUR DRAFT TEXT. I REGRET THAT WE WILL NOT BE ABLE TO SETTLE THE MATTER BY YOUR DEADLINE BUT WE ARE WORKING ON THE FOLLOWING LINES.

2. WE CANNOT AUTHORISE YOU TO GIVE A DIRECT ASSURANCE ON THE PRICE ON BEHALF OF HMG SINCE THIS WOULD INVOLVE AN OPEN-ENDED COMMITMENT TO BACK METRO-CAMMELL'S PERFORMANCE. WE ARE THEREFORE PLANNING AN ASSURANCE FROM METRO CAM WHICH YOU WOULD TRANSMIT ON THEIR

BEHALF.

3. WE ARE THINKING IN TERMS OF A TEXT FOR YOUR LETTER AS FOLLOWS:- QUOTE I AM AUTHORISED BY HER MAJESTY'S GOVERNMENT TO CONVEY TO THE HONG KONG GOVERNMENT THAT FOLLOWING DISCUSSIONS IN THE UK BETWEEN DEPARTMENTS AND METRO CAMMEL LTD THE COMPANY ARE NOW ABLE TO ASSURE THE HONG KONG GOVERNMENT THAT THE PURCHASE PRICE OF THE ELECTRICAL MULTIPLE UNITS SPECIFIED IN HONG KONG GOVERNMENT TENDER NUMBER .... WOULD NOT EXCEED POUNDS STERLING 44 POINT 4 MILLION. THIS ASSURANCE IS ENCLOSED. UNQUOTE

4. THE METRO CAMMELL TEXT, TO BE SENT BY SANSOME AND TRANSMITTED WITH YOUR LETTER, WOULD SAY

QUOTE I AM WRITING TO SAY ON BEHALF OF METRO-CAMMELL LTD THAT THE COMPANY ASSURE THE HONG KONG GOVERNMENT THAT THE PURCHASE PRICE OF THE ELECTRICAL MULTIPLE UNITS SPECIFIED IN HONG KONG GOVERNMENT TENDER NUMBER .... WOULD NOT EXCEED POUNDS STERLING 44 POINT 4 MILLION. UNQUOTE

5. WE ARE SEEKING TO CLEAR THIS TEXT WITH GARDINER AND TO GET THE NECESSARY AUTHORITIES IN WHITEHALL AS EARLY AS POSSIBLE NEXT WEEK.

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