TNAG-0772-FCO40-976-Modernisation-and-electrification-of-the-Kowloon-Canton-Rail-1978 — Page 83

HOFO 003/03

00 DOT DESKBY 0309002

GR 420

CONFIDENTIAL

DEDIP

DESKBY 030908Z

-HKK 173/2.

Sae (1313)

FM BTC HONG KONG 030901Z NOV 78.

• TO IMMEDIATE DOT

TELEGRAM NUMBER CREDA 327 OF 03 NOVEMBER.

Rizi

2:53

{No DOT DOTTERY (2) - Knights Cre

IMMEDIATE

NO DISTRIBUTION

PERSONAL FOR KNIGHTON DEPUTY SECRETARY CRE.

Dup: King Copies Alt+GD

IN TREDLED Hd PUSD (2) (GX)

1. I SHOULD BE GRATEFUL IF YOU WOULD LOOK URGENTLY AT METCAM'S PROBLEM WITH THEIR BID FOR THE ROLLING STOCK FOR THE KOWLOON- CANTON RAILWAY (KCR) AS REPORTED IN MY TELNO CREDA 326 OF TODAY

TO TWYMAN IN OPG.

2.

"

I HAVE LEARNED ON A STRICTLY CONFIDENTIAL BASIS FROM THE SAME IMPECCABLE SOURCE RECORDED IN MY TELNO CREDA 322 ABOUT THE

MASS TRANSIT RAILCAR CONTRACT, THAT METCAM'S PRICE IS 18-20 PERCENT HIGHER THAN THE TWO OTHER REMAINING COMPETITORS. IN ROUND FIGURES METCAM HAVE BID HK DOLLARS 500 MILLION, A EUROPEAN GROUP (WHICH SANSOME AND I BELEIVE TO BE A FRENCH/SWISS CONSORTIUM CALLED THE 50 CYCLE GROUP) HAVE BID HK DOLLARS 450 MILLION AND THE JAPANESE HAVE BID HK DOLLARS 400 MILLION. UNLESS SANSOME'S LAST DITCH ATTEMPTS TO CREATE DOUBTS IN TRANSMARK ABOUT THE TECHNICAL COMPLIANCE OF THE OPPOSITION THE HONG KONG GOVERNMENT TENDER BOARD AT PRESENT HAVE LITTLE OPTION BUT TO RULE OUT METCAM ON

GROUNDS OF PRICE.

3.

TRANSMARK are s

MY SOURCE SUGGESTS THAT THERE ARE ONLY THREE OPTIONS NOW OPEN

TO THE GOVERNMENT,