TNAG-0772-FCO40-976-Modernisation-and-electrification-of-the-Kowloon-Canton-Rail-1978 — Page 47

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TELEGRAM NUMBER CREDA 338 OF 13 NOVEMBER.

PERSONAL FOR ROYCE CRE.

YOUR TELNO CREDA 183: KOWLOON CANTON RAILWAY,

SK

Sed 28

1. I HAVE ASSURED MY CONTACT THAT WE HOPE TO BRIDGE THE GAP, WE HAVE BEEN GIVEN A FURTHER WEEK 1.E. UNTIL 178189Z.

NO. 51

2. OPINION IS HARDENING AGAINST THE OPTION TO REISSUE TENDERS (THE TIMETABLE FOR THE MODERNISATION OF THE RAILWAY IS LOCKED INTO OTHER DEVELOPMENT PLANS) AND SUCCESS DEPENDS ON OUR ABILITY TO BE NEAR ENOUGH TO OUR COMPETITORS PRICES TO ENABLE POLITICAL CONSIDERATIONS TO CARRY THE DAY,

3. FOR YOUR OWN INFORMATION THE ASKING FIGURE IS A REDUCTION TO HONG KONG DOLLARS 420 MILLION I.E. FIVE PERCENT ABOVE THE JAPANESE PRICE. THIS MEANS WE NEED TO REDUCE OUR BID BY A TOTAL OF POUNDS STERLING 8 MILLION.

4. I ASSUME THAT YOU ARE EXAMINING IN DETAIL THE ABILITY OF THE DEPARTMENT OF INDUSTRY TO ASSIST THE LAIRD GROUP AS A WHOLE

IN A VARIETY OF DIFFERENT DIRECTIONS. IN THE ABSENCE OF CAREY, LIPPITT AND BENJAMIN, WE SUGGEST THAT POINT OF CONTACT SHOULD BE DUGUID, PPS TO MR VARLEY, WHO WILL BE AWARE OF THE LONG TERM POLITICAL IMPORTANCE OF LINKING INTO THE CHINESE SYSTEM (SEE PARA

5 OF MY TELNO CREDA 326).

MARCH

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