TNAG-0772-FCO40-976-Modernisation-and-electrification-of-the-Kowloon-Canton-Rail-1978 — Page 64

Why? Godenino

Retcam are

after the tender award;

C.

to reopen tendering on the grounds that there were

too few bids in accordance with the specification.

For either option (b) or (c) to have any chance of swinging

•

the contract back to Metro Cam it is essential for the Hong

Kong Government to know by Friday 10 November whether Metro

Cam can reduce their bid by the approximately £7m sterling

needed to match at least the European bid.

[With

With representatives of the Department of Industry and ECGD

I yesterday examined with Metro Cam the employment and trade

implications of the success or failure of their bid and the

means open to the firm and to government to achieve a reduction.

Asuccessful bid would provide some 2,400 man years of work for

Metro Cam and sub-contractors mainly in the Midlands and

up

Manchester.

better plased

Rewrite-

Failure would not only jeopardise these jobs but

make it more difficult for Metro Cam to retain credibility

in their bid for the next stage of the Hong Kong mass transit

system, tenders for which are due in in a fortnight's time.

This again is a job which would provide some 2,400 man years

of work. This apart, failure in the politically and technically

helpful atmosphere of Hong Kong would be noted by buyers else-

where in the world with a potential vicious spiralling effect.

Direct employment preservation apart, railway development looks

a sector of growth worldwide. The provision of railway rolling

stock and equipment is suited to UK technology. The general

aims of the Industrial Strategy argue for enhancing the railway

industry's capability rather than the reverse.

On the trade side, the Hong Kong section of the Kowloon/Canton

railway could prove to be precedent setting for the further

development of the railway to Canton. Transmark believe