TNAG-0854-FCO40-1064-The-Kowloon-Canton-Railway-1979 — Page 50

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Commission for Canada

La Commission du Canada

Asian House, 15/F, 1 Hennessy Road, Hong Kong.

January 25, 1979.

Dear Sir Jack,

AVANR2

On November 17, 1978, I called on you to outline concerns the Canadian Government had with respect to the award of the con- tract for rolling stock for, the Kowloon-Canton Railway. The Public Works Department informed the Commission in its letter of January 3, 1979 that the tender submitted by Hawker Siddeley Canada Limited had not been accepted. In its further letter of January 11, the Department categorically refused to provide additional information and was unwilling even to disclose the identity of the successful bidder.

In spite of the Department's policy of silence on the matter, I would draw to your attention the rumour which is current to the effect that the successful bidder was that from the United Kingdom. A further rumour has it that the bid of the U.K. firm was, in fact, highest of the four submitted. In the light of the concerns I expressed to you in November, I am sure you will appreciate that the rumours, if true, carry with them disturbing implications.

I should be grateful for an opportunity to meet with you at your earliest convenience to outline the implications as I see them from the Canadian point of view. I regret having to bother you further on this subject, but our concerns rather than being dispelled have in fact been heightened.

With kind regards, I remain,

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The Hon. Sir Jack Cater, K.B.E., J.P.,

The Chief Secretary,

Government Secretariat,

Central Government Offices,

Lower Albert Road,

Hong Kong.

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Yours sincerely,

Bill Mandir

William T. Warden,

Commissioner.

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