TNAG-0772-FCO40-976-Modernisation-and-electrification-of-the-Kowloon-Canton-Rail-1978 — Page 37

1. ON HIS RETURN TO HONG KONG, ANSOME TOLD ME THAT HE WAS

PREPARED TO BRIDGE THE GAP BETWEEN THE £7.55 MILLION AND

THE REQUIRED £8 MILLION ON HIS OWN AUTHORITY EVEN IF FURTHER

INVESTIGATION OF THE DEVICE SUGGESTED IN MY CREDA 339 YIELDED

NO FURTHER HELP. I IMMEDIATELY REPORTED THIS TO MY CONTACT.

2. A WAY NOW HAS TO BE FOUND FOR SECURING THE FORMAL ACCEPTANCE OF METCAM'S REVISED PRICE. WE PROPOSE THAT THE HONG KONG

GOVERNMENT SHOULD FORMALLY NOTIFY METCAM THAT IT IS PREPARED

TO AWARD THEM THE TENDER SUBJECT TO FINAL AGREEMENT ON PRICE.

A COPY OF THIS LETTER WOULD BE SENT TO ME FOR INFORMATION.

I SHOULD THEN REPLY IMMEDIATELY ON THE LINES OF THE FOLLOWING

DRAFT:-

BEGINS

THANK YOU FOR ENDING ME A COPY OF YOUR LETTER OF NOVEMBER TO METRO CAMMELL LTD.

2. I AM AUTHORISED BY HER MAJESTY'S GOVERNMENT TO ASSURE THE HONG KONG GOVERNMENT THAT, AS A RESULT OF CONSULTATIONS IN THE U.K BETWEEN THE DEPARTMENTS OF INDUSTRY AND TRADE AND METRO CAMMELL LTD, THE PURCHASE PRICE OF THE ELECTRICAL MULTIPLE UNITS SPECIFIED IN HONG KONG GOVERNMENT TENDER NUMBER......

WOULD NOT EXCEED £44.4 MILLION.

ENDS

3. ARMED WITH SUCH AN ASSURANCE, MY CONTACT BELIEVES THAT IT WILL BE POSSIBLE TO SECURE THE AWARD OF THE TENDER FOR METCAM. THIS IS A HIGHLY SATISFACTORY OUTCOME TO WHAT THREATENED TO BE A MAJOR SETBACK FOR US IN THIS MARKET. I HOPE THAT YOU CAN GIVE ME IMMEDIATE AUTHORITY TO SIGN A LETTER IN THE ABOVE TERMS.

MARCH

NNNN