TNAG-0772-FCO40-976-Modernisation-and-electrification-of-the-Kowloon-Canton-Rail-1978 — Page 86

4.

SANSOME REPORTED ALL THIS TO JOHN GARDNER, CHIEF EXECUTIVE OF THE LAIRD GROUP, WHO WILL BY NOW HAVE SPOKEN TO PETER PARKER AND OTHERS AT BRITISH RAIL ABOUT TRANSMARK'S FAILURE TO PROVIDE

METCAM WITH AN OPPORTUNITY TO GIVE A FULL PRESENTATION OF THEIR

OFFER. I FEAR THAT IT IS PROBABLY TOO LATE TO INFLUENCE

THE CONSULTANTS AS THEIR REPORT IS ALREADY IN THE HANDS OF THE

TENDER BOARD. THE STARK FACT IS THAT UNLESS METCAM CAN OFFER A

PRICE REDUCTION WITHIN ONE WEEK, WE SHALL LOSE THE CONTRACT.

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$

5. THE DISCOVERY THAT THE UK IS UNABLE TO WIN A CONTRACT FOR

RAILWAY STOCK WRITTEN TO BRITISH SPECIFICATION IN ITS OWN

COLONY WILL BE MANNA FOR OUR COMPETITORS AND WILL SET BACK OUR CAMPAIGN TO ATTRACT THE ATTENTION OF BRITISH EXPORTERS TO THIS

MARKET. MORE IMPORTANT WE SHOULD ALMOST CERTAINLY LOSE OUR CHANCE

TO SUPPLY MATCHING BRITISH EQUIPMENT FOR THE MODERNISATION OF THE LINE FROM CANTON TO SHUM CHUN ON THE CHINESE SIDE OF THE BORDER WHICH IS TO BE STUDIED BY A BRITISH RAIL TEAM FOLLOWING IAN CAMPBELL'S RECENT VISIT TO CHINA. THE POLITICAL IMPORTANCE AND

THE LONG TERM COMMERCIAL IMPLICATION OF HAVING THE WHOLE CANTON- HONG KONG RAIL ROUTE MODERNISED BY THE UK IS A WEIGHTY ARGUMENT IN FAVOUR OF OFFICIAL HELP TO SAVE THIS CONTRACT EVEN IF ITS ACTUAL VALUE (POUNDS STERLING 50 MILLION) IS SMALLER THAN THE

MTR DEAL.

MARCH

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