TNAG-0772-FCO40-976-Modernisation-and-electrification-of-the-Kowloon-Canton-Rail-1978 — Page 55

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HkK143/2

fm

00 BTC HONG KONG (DESKBY 100100

GRS 200

CONFIDENTIAL

DESKBY 100100Z

FM DTI 091735Z NOV 78

TO IMMEDIATE BTC HONG KONG

TELEGRAM NUMBER CREDA 182 OF 9 NOVEMBER

FOR MARCH FROM ROYCE

HK + CD

YOUR TELNO 328 CREDA: MET CAM AND THE KOWLOON-CANTON RAILWAY.

WE CAN NOW SEE CLEAR MEANS BY WHICH THE METRO CAM PRICE COULD BE REDUCED BY POUNDS STERLING 4 MILLION (POUNDS STERLING 2.4 MILLION BY METRO CAMMELL, POUNDS STERLING 1 MILLION FROM A DEPART- MENT OF INDUSTRY GRANT FOR DEVELOPMNT OF NEW PRODUCTS, POUNDS STERLING .6MILLION BY A CHANGE IN ECGD'S TENDER TO CONTRACT

ARRANGEMENTS). IN ADDITION WE ARE WORKING ON A SCHEME WHEREBY

THE PHASING OF LONDON TRANSPORT'S REQUIREMENTS OF METRO CAM

COULD BE ADJUSTED IN WAYS WHICH WOULD BE HELPFUL TO THE FIRM AND

WE THINK ENABLE THEM TO COME CLOSER TO THE EUROPEAN PRICE.

THE CONCEPT OF SOME FORM OF BUYER CREDIT FOUNDERS ON VIRES.

THE CONCEPT OF SOME FORM OF TENDER TO CONTRACT ARRANGEMENT WITH

HONG KONG DOLLARS IS FRAUGHT WITH SNAGS.

UNLESS YOU SEE OBJECTION WOULD YOU NOW PLEASE EXPLAIN THE POSITION TO THE HONG KONG GOVERNMENT USING WHATEVER ARGUMENTS YOU THINK MAY BE MOST LIKELY TO PERSUADE THEM THAT THEIR OWN ADVANTAGE AND THAT OF HMG IN THE UK WOULD BE BEST SERVED BY A DECISION TO PREFER METRO CAM AS CONTRACTORS FOR THE DEVELOPMENT OF THE KCR.

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